How are RACE 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 RACE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.45%), the computed maximum profit is $1,305.26 per contract and the computed maximum loss is -$665.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RACE butterfly?

The breakeven for the RACE butterfly priced on this page is roughly $306.39 and $333.35 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current RACE market-implied 1-standard-deviation expected move is approximately 9.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RACE implied volatility affect this butterfly?

RACE ATM IV is at 32.45% with IV rank near 32.78%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

RACE Butterfly Strategy

RACE (Ferrari N.V.), in the Consumer Cyclical sector, (Auto - Manufacturers industry), listed on NYSE.

Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hyper cars; one-off and track cars; and Icona cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars. In addition, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods; Ferrari World, a theme park in Abu Dhabi, the United Arab Emirates; and Ferrari Land Portaventura, a theme park in Europe. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks, as well as owns and manages two museums in Maranello and Modena, Italy; and develops and sells a line of apparel and accessories through its monobrand stores. As of December 31, 2021, it had a total of 30 retail Ferrari stores, including 14 franchised stores and 16 owned stores.

RACE (Ferrari N.V.) trades in the Consumer Cyclical sector, specifically Auto - Manufacturers, with a market capitalization of approximately $58.79B, a trailing P/E of 31.33, a beta of 0.59 versus the broader market, a 52-week range of 312.51-519.1, average daily share volume of 639K, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how RACE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.59 indicates RACE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. RACE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RACE?

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.

Current RACE snapshot

As of May 15, 2026, spot at $321.91, ATM IV 32.45%, IV rank 32.78%, expected move 9.30%. The butterfly on RACE below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this butterfly structure on RACE specifically: RACE IV at 32.45% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 9.30% (roughly $29.95 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RACE expiries trade a higher absolute premium for lower per-day decay. Position sizing on RACE should anchor to the underlying notional of $321.91 per share and to the trader's directional view on RACE stock.

RACE butterfly setup

The RACE butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RACE near $321.91, the first option leg uses a $305.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RACE chain at a 28-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 RACE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$305.00	$23.40
Sell 2	Call	$320.00	$13.80
Buy 1	Call	$340.00	$5.85

RACE butterfly risk and reward

Net Premium / Debit: -$165.00
Max Profit (per contract): $1,305.26
Max Loss (per contract): -$665.00
Breakeven(s): $306.39, $333.35
Risk / Reward Ratio: 1.963

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.

RACE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RACE. 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%	-$165.00
$71.18	-77.9%	-$165.00
$142.36	-55.8%	-$165.00
$213.53	-33.7%	-$165.00
$284.71	-11.6%	-$165.00
$355.88	+10.6%	-$665.00
$427.06	+32.7%	-$665.00
$498.23	+54.8%	-$665.00
$569.41	+76.9%	-$665.00
$640.58	+99.0%	-$665.00

When traders use butterfly on RACE

Butterflies on RACE are pinning bets - traders use them when they expect RACE 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.

RACE thesis for this butterfly

The market-implied 1-standard-deviation range for RACE extends from approximately $291.96 on the downside to $351.86 on the upside. A RACE long call butterfly is a pinning play: it pays maximum at the middle strike if RACE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RACE IV rank near 32.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on RACE should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, RACE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RACE-specific events.

RACE 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. RACE positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RACE alongside the broader basket even when RACE-specific fundamentals are unchanged. Always rebuild the position from current RACE chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on RACE?: A butterfly on RACE is the butterfly strategy applied to RACE (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 RACE stock trading near $321.91, the strikes shown on this page are snapped to the nearest listed RACE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RACE 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 RACE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.45%), the computed maximum profit is $1,305.26 per contract and the computed maximum loss is -$665.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RACE butterfly?: The breakeven for the RACE butterfly priced on this page is roughly $306.39 and $333.35 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current RACE market-implied 1-standard-deviation expected move is approximately 9.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RACE?: Butterflies on RACE are pinning bets - traders use them when they expect RACE 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 RACE implied volatility affect this butterfly?: RACE ATM IV is at 32.45% with IV rank near 32.78%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.