RAMP Butterfly Strategy
RAMP (LiveRamp Holdings, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.
LiveRamp Holdings, Inc. operates as a technology enterprise, delivering sophisticated enterprise data connectivity solutions throughout the United States, Europe, and the Asia-Pacific region. Its product portfolio includes: RampID: A fundamental identifier focused on individuals. Safe Haven: A robust platform designed to empower businesses with data utilization. LiveRamp Data Marketplace: A key tool that facilitates the fluid integration of audience data from various proprietors within the broader marketing landscape. AbiliTec: A specialized platform for resolving offline identity discrepancies. LiveRamp serves a diverse clientele spanning numerous sectors, including finance, insurance, investment services, retail, automotive, telecommunications, high technology, consumer packaged goods, healthcare, travel, entertainment, non-profit organizations, and governmental bodies, among many others.
RAMP (LiveRamp Holdings, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $2.27B, a trailing P/E of 16.11, a beta of 1.28 versus the broader market, a 52-week range of 21.71-37.92, average daily share volume of 1.5M, a public-listing history dating back to 1983, approximately 1K full-time employees. These structural characteristics shape how RAMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places RAMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on RAMP?
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 RAMP snapshot
As of June 30, 2026, spot at $37.59, ATM IV 12.60%, IV rank 1.76%, expected move 3.61%. The butterfly on RAMP 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 17-day expiry.
Why this butterfly structure on RAMP specifically: RAMP IV at 12.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a RAMP butterfly, with a market-implied 1-standard-deviation move of approximately 3.61% (roughly $1.36 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RAMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on RAMP should anchor to the underlying notional of $37.59 per share and to the trader's directional view on RAMP stock.
RAMP butterfly setup
The RAMP 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 RAMP near $37.59, the first option leg uses a $35.71 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RAMP chain at a 17-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 RAMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.71 | N/A |
| Sell 2 | Call | $37.59 | N/A |
| Buy 1 | Call | $39.47 | N/A |
RAMP butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
RAMP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RAMP. 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.
When traders use butterfly on RAMP
Butterflies on RAMP are pinning bets - traders use them when they expect RAMP 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.
RAMP thesis for this butterfly
The market-implied 1-standard-deviation range for RAMP extends from approximately $36.23 on the downside to $38.95 on the upside. A RAMP long call butterfly is a pinning play: it pays maximum at the middle strike if RAMP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RAMP IV rank near 1.76% 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 RAMP at 12.60%. As a Technology name, RAMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RAMP-specific events.
RAMP 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. RAMP positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RAMP alongside the broader basket even when RAMP-specific fundamentals are unchanged. Always rebuild the position from current RAMP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RAMP?
- A butterfly on RAMP is the butterfly strategy applied to RAMP (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 RAMP stock trading near $37.59, the strikes shown on this page are snapped to the nearest listed RAMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RAMP 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 RAMP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 12.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RAMP butterfly?
- The breakeven for the RAMP butterfly priced on this page is no defined breakeven on the modeled curve 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 RAMP market-implied 1-standard-deviation expected move is approximately 3.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RAMP?
- Butterflies on RAMP are pinning bets - traders use them when they expect RAMP 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 RAMP implied volatility affect this butterfly?
- RAMP ATM IV is at 12.60% with IV rank near 1.76%, 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.