R Butterfly Strategy
R (Ryder System, Inc.), in the Industrials sector, (Rental & Leasing Services industry), listed on NYSE.
Ryder System, Inc. functions as a worldwide provider of logistics and transportation services, operating through three distinct segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS). The FMS segment offers extensive vehicle services, including full-service leasing and leasing options that feature flexible maintenance. It also supplies maintenance services, necessary equipment, and various provisions for vehicle operation. This segment further provides commercial vehicle rental services, as well as both contractual and transactional maintenance for trucks, tractors, and trailers, supported by comprehensive fleet support. Customers also gain access to diesel fuel, coupled with services for fuel planning, tax reporting, fuel cards, usage monitoring, and consolidated billing. Ryder sells its pre-owned vehicles via 63 retail centers and its dedicated website.
R (Ryder System, Inc.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $10.08B, a trailing P/E of 20.62, a beta of 1.01 versus the broader market, a 52-week range of 157.67-284.25, average daily share volume of 399K, a public-listing history dating back to 1980, approximately 52K full-time employees. These structural characteristics shape how R stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places R roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. R pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on R?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
R snapshot
As of August 14, 2026, spot at $263.00, ATM IV 30.60%, IV rank 18.66%, expected move 8.77%. The butterfly on R below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on R specifically: R IV at 30.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a R butterfly, with a market-implied 1-standard-deviation move of approximately 8.77% (roughly $23.07 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated R expiries trade a higher absolute premium for lower per-day decay. Position sizing on R should anchor to the underlying notional of $263.00 per share and to the trader's directional view on R stock.
R butterfly setup
The R butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With R at $263.00 on that close, the first option leg uses a $250.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed R chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 R shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $250.00 | $18.60 |
| Sell 2 | Call | $260.00 | $11.75 |
| Buy 1 | Call | $280.00 | $4.13 |
R butterfly risk and reward
- Net Premium / Debit
- +$77.50
- Max Profit (per contract)
- $981.53
- Max Loss (per contract)
- -$922.50
- Breakeven(s)
- $270.78
- Risk / Reward Ratio
- 1.064
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
R butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on R. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$77.50 |
| $58.16 | -77.9% | +$77.50 |
| $116.31 | -55.8% | +$77.50 |
| $174.46 | -33.7% | +$77.50 |
| $232.61 | -11.6% | +$77.50 |
| $290.76 | +10.6% | -$922.50 |
| $348.91 | +32.7% | -$922.50 |
| $407.06 | +54.8% | -$922.50 |
| $465.21 | +76.9% | -$922.50 |
| $523.36 | +99.0% | -$922.50 |
When traders use butterfly on R
Butterflies on R are pinning bets - traders use them when they expect R to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
R thesis for this butterfly
The market-implied 1-standard-deviation range for R extends from approximately $239.93 on the downside to $286.07 on the upside. A R long call butterfly is a pinning play: it pays maximum at the middle strike if R settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current R IV rank near 18.66% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on R at 30.60%. As a Industrials name, R options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to R-specific events.
R butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. R positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move R alongside the broader basket even when R-specific fundamentals are unchanged. Always rebuild the position from current R chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on R?
- A butterfly on R is the butterfly strategy applied to R (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With R stock at $263.00 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed R chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are R butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the R butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.60%), the computed maximum profit is $981.53 per contract and the computed maximum loss is -$922.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a R butterfly?
- The breakeven for the R butterfly priced on this page is roughly $270.78 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The R market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on R?
- Butterflies on R are pinning bets - traders use them when they expect R to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current R implied volatility affect this butterfly?
- R ATM IV is at 30.60% with IV rank near 18.66%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.