How are RCLY 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 RCLY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 15.10%), the computed maximum profit is $329.18 per contract and the computed maximum loss is -$134.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RCLY butterfly?

The breakeven for the RCLY butterfly priced on this page is roughly $97.35 and $104.66 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 RCLY market-implied 1-standard-deviation expected move is approximately 4.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RCLY implied volatility affect this butterfly?

Current RCLY ATM IV is 15.10%; IV rank context is unavailable in the current snapshot.

RCLY Butterfly Strategy

RCLY (Reckoner BBB-B CLO Annual ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

RCLY is a feeder fund that provides leveraged exposure to CLO tranches rated as BBB+ to B- by investing exclusively in its master fund, the Reckoner BBB-B CLO ETF (RCLO). The underlying ETF, RCLO, primarily focuses on floating-rate CLOs within its target rating range but may invest up to 70% in CLOs rated BB+ or lower, and up to 10% in CLOs rated above BBB+. Investments could be of any maturity, purchased from both primary and secondary markets. It applies a bottom-up approach to select investments by reviewing documentation on an issuers management, individual CLO structure and collateral, ability to meet obligations, cash flow, and trading frequency. RCLY makes a single annual dividend payment, offering tax efficiency, compounding potential, and the opportunity to maximize long-term total return.

RCLY (Reckoner BBB-B CLO Annual ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $12.6M, a beta of 0.07 versus the broader market, a 52-week range of 96.37-100.94, average daily share volume of 0K, a public-listing history dating back to 2026, approximately 320 full-time employees. These structural characteristics shape how RCLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.07 indicates RCLY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on RCLY?

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 RCLY snapshot

As of June 29, 2026, spot at $101.14, ATM IV 15.10%, expected move 4.33%. The butterfly on RCLY 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 53-day expiry.

Why this butterfly structure on RCLY specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RCLY is inferred from ATM IV at 15.10% alone, with a market-implied 1-standard-deviation move of approximately 4.33% (roughly $4.38 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RCLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RCLY should anchor to the underlying notional of $101.14 per share and to the trader's directional view on RCLY stock.

RCLY butterfly setup

The RCLY 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 RCLY near $101.14, the first option leg uses a $96.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RCLY chain at a 53-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 RCLY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$96.00	$5.13
Sell 2	Call	$101.00	$2.08
Buy 1	Call	$106.00	$0.38

RCLY butterfly risk and reward

Net Premium / Debit: -$134.50
Max Profit (per contract): $329.18
Max Loss (per contract): -$134.50
Breakeven(s): $97.35, $104.66
Risk / Reward Ratio: 2.447

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.

RCLY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RCLY. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$134.50
$22.37	-77.9%	-$134.50
$44.73	-55.8%	-$134.50
$67.09	-33.7%	-$134.50
$89.46	-11.6%	-$134.50
$111.82	+10.6%	-$134.50
$134.18	+32.7%	-$134.50
$156.54	+54.8%	-$134.50
$178.90	+76.9%	-$134.50
$201.26	+99.0%	-$134.50

When traders use butterfly on RCLY

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

RCLY thesis for this butterfly

The market-implied 1-standard-deviation range for RCLY extends from approximately $96.76 on the downside to $105.52 on the upside. A RCLY long call butterfly is a pinning play: it pays maximum at the middle strike if RCLY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, RCLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RCLY-specific events.

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

Frequently asked questions

What is a butterfly on RCLY?: A butterfly on RCLY is the butterfly strategy applied to RCLY (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 RCLY stock trading near $101.14, the strikes shown on this page are snapped to the nearest listed RCLY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RCLY 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 RCLY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 15.10%), the computed maximum profit is $329.18 per contract and the computed maximum loss is -$134.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RCLY butterfly?: The breakeven for the RCLY butterfly priced on this page is roughly $97.35 and $104.66 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 RCLY market-implied 1-standard-deviation expected move is approximately 4.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RCLY?: Butterflies on RCLY are pinning bets - traders use them when they expect RCLY 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 RCLY implied volatility affect this butterfly?: Current RCLY ATM IV is 15.10%; IV rank context is unavailable in the current snapshot.