How are RDWR 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 RDWR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 48.60%), the computed maximum profit is $115.92 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RDWR butterfly?

The breakeven for the RDWR butterfly priced on this page is roughly $29.70 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 RDWR market-implied 1-standard-deviation expected move is approximately 13.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RDWR implied volatility affect this butterfly?

RDWR ATM IV is at 48.60% with IV rank near 41.11%, 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.

RDWR Butterfly Strategy

RDWR (Radware Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

Radware Ltd. and its affiliated companies are dedicated to the development, production, and distribution of advanced cybersecurity and application management tools. These sophisticated solutions cater to applications hosted across global cloud infrastructures, traditional physical data centers, and modern software-defined environments. The company's security offerings encompass DefensePro for immediate network attack defense, AppWall serving as a Web Application Firewall (WAF), and the Radware Kubernetes WAF, specifically engineered for WAF protection within Kubernetes-orchestrated CI/CD pipelines. Additionally, DefenseFlow provides comprehensive cyber command and control capabilities. In terms of application delivery, Radware supplies Alteon, an application delivery controller and load balancer essential for web, cloud, and mobile applications, alongside LinkProof NG, a multi-homing and enterprise gateway ensuring robust connectivity for both on-premise and cloud-based applications. Radware further enhances its portfolio with specialized subscriptions and services.

RDWR (Radware Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $1.27B, a trailing P/E of 64.69, a beta of 0.85 versus the broader market, a 52-week range of 21.68-31.92, average daily share volume of 228K, a public-listing history dating back to 1999, approximately 1K full-time employees. These structural characteristics shape how RDWR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places RDWR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 64.69 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.

What is a butterfly on RDWR?

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 RDWR snapshot

As of June 30, 2026, spot at $30.70, ATM IV 48.60%, IV rank 41.11%, expected move 13.93%. The butterfly on RDWR 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 RDWR specifically: RDWR IV at 48.60% 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 13.93% (roughly $4.28 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 RDWR expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDWR should anchor to the underlying notional of $30.70 per share and to the trader's directional view on RDWR stock.

RDWR butterfly setup

The RDWR 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 RDWR near $30.70, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RDWR 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 RDWR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$29.00	$2.30
Sell 2	Call	$31.00	$1.23
Buy 1	Call	$32.00	$0.85

RDWR butterfly risk and reward

Net Premium / Debit: -$70.00
Max Profit (per contract): $115.92
Max Loss (per contract): -$70.00
Breakeven(s): $29.70
Risk / Reward Ratio: 1.656

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.

RDWR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RDWR. 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%	-$70.00
$6.80	-77.9%	-$70.00
$13.58	-55.8%	-$70.00
$20.37	-33.6%	-$70.00
$27.16	-11.5%	-$70.00
$33.94	+10.6%	+$30.00
$40.73	+32.7%	+$30.00
$47.52	+54.8%	+$30.00
$54.30	+76.9%	+$30.00
$61.09	+99.0%	+$30.00

When traders use butterfly on RDWR

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

RDWR thesis for this butterfly

The market-implied 1-standard-deviation range for RDWR extends from approximately $26.42 on the downside to $34.98 on the upside. A RDWR long call butterfly is a pinning play: it pays maximum at the middle strike if RDWR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RDWR IV rank near 41.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on RDWR should anchor more to the directional view and the expected-move geometry. As a Technology name, RDWR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDWR-specific events.

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

Frequently asked questions

What is a butterfly on RDWR?: A butterfly on RDWR is the butterfly strategy applied to RDWR (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 RDWR stock trading near $30.70, the strikes shown on this page are snapped to the nearest listed RDWR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RDWR 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 RDWR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 48.60%), the computed maximum profit is $115.92 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RDWR butterfly?: The breakeven for the RDWR butterfly priced on this page is roughly $29.70 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 RDWR market-implied 1-standard-deviation expected move is approximately 13.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RDWR?: Butterflies on RDWR are pinning bets - traders use them when they expect RDWR 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 RDWR implied volatility affect this butterfly?: RDWR ATM IV is at 48.60% with IV rank near 41.11%, 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.