How are RBA 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 RBA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is $287.28 per contract and the computed maximum loss is -$197.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RBA butterfly?

The breakeven for the RBA butterfly priced on this page is roughly $103.03 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 RBA market-implied 1-standard-deviation expected move is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RBA implied volatility affect this butterfly?

RBA ATM IV is at 28.30% with IV rank near 40.74%, 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.

RBA Butterfly Strategy

RBA (RB Global, Inc.), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; Xcira that provides live simulcast auction technologies; and Veritread, an online marketplace for heavy haul transport solution. The company serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.

RBA (RB Global, Inc.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $18.96B, a trailing P/E of 41.92, a beta of 0.57 versus the broader market, a 52-week range of 93.58-119.58, average daily share volume of 1.3M, a public-listing history dating back to 1998, approximately 8K full-time employees. These structural characteristics shape how RBA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.57 indicates RBA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 41.92 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. RBA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RBA?

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 RBA snapshot

As of May 15, 2026, spot at $101.68, ATM IV 28.30%, IV rank 40.74%, expected move 8.11%. The butterfly on RBA 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 34-day expiry.

Why this butterfly structure on RBA specifically: RBA IV at 28.30% 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 8.11% (roughly $8.25 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RBA expiries trade a higher absolute premium for lower per-day decay. Position sizing on RBA should anchor to the underlying notional of $101.68 per share and to the trader's directional view on RBA stock.

RBA butterfly setup

The RBA 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 RBA near $101.68, the first option leg uses a $97.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RBA chain at a 34-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 RBA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$97.50	$6.00
Sell 2	Call	$100.00	$4.20
Buy 1	Call	$105.00	$1.88

RBA butterfly risk and reward

Net Premium / Debit: +$52.50
Max Profit (per contract): $287.28
Max Loss (per contract): -$197.50
Breakeven(s): $103.03
Risk / Reward Ratio: 1.455

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.

RBA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RBA. 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%	+$52.50
$22.49	-77.9%	+$52.50
$44.97	-55.8%	+$52.50
$67.45	-33.7%	+$52.50
$89.93	-11.6%	+$52.50
$112.41	+10.6%	-$197.50
$134.90	+32.7%	-$197.50
$157.38	+54.8%	-$197.50
$179.86	+76.9%	-$197.50
$202.34	+99.0%	-$197.50

When traders use butterfly on RBA

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

RBA thesis for this butterfly

The market-implied 1-standard-deviation range for RBA extends from approximately $93.43 on the downside to $109.93 on the upside. A RBA long call butterfly is a pinning play: it pays maximum at the middle strike if RBA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RBA IV rank near 40.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on RBA should anchor more to the directional view and the expected-move geometry. As a Industrials name, RBA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RBA-specific events.

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

Frequently asked questions

What is a butterfly on RBA?: A butterfly on RBA is the butterfly strategy applied to RBA (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 RBA stock trading near $101.68, the strikes shown on this page are snapped to the nearest listed RBA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RBA 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 RBA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is $287.28 per contract and the computed maximum loss is -$197.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RBA butterfly?: The breakeven for the RBA butterfly priced on this page is roughly $103.03 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 RBA market-implied 1-standard-deviation expected move is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RBA?: Butterflies on RBA are pinning bets - traders use them when they expect RBA 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 RBA implied volatility affect this butterfly?: RBA ATM IV is at 28.30% with IV rank near 40.74%, 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.