REXR Butterfly Strategy
REXR (Rexford Industrial Realty, Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.
Rexford Industrial, a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets, owns 232 properties with approximately 27.9 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet.
REXR (Rexford Industrial Realty, Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $8.24B, a trailing P/E of 35.03, a beta of 1.24 versus the broader market, a 52-week range of 32.14-44.38, average daily share volume of 2.6M, a public-listing history dating back to 2013, approximately 271 full-time employees. These structural characteristics shape how REXR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places REXR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 35.03 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. REXR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on REXR?
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 REXR snapshot
As of May 15, 2026, spot at $34.80, ATM IV 27.60%, IV rank 4.33%, expected move 7.91%. The butterfly on REXR 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 REXR specifically: REXR IV at 27.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a REXR butterfly, with a market-implied 1-standard-deviation move of approximately 7.91% (roughly $2.75 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 REXR expiries trade a higher absolute premium for lower per-day decay. Position sizing on REXR should anchor to the underlying notional of $34.80 per share and to the trader's directional view on REXR stock.
REXR butterfly setup
The REXR 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 REXR near $34.80, the first option leg uses a $33.06 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REXR 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 REXR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $33.06 | N/A |
| Sell 2 | Call | $34.80 | N/A |
| Buy 1 | Call | $36.54 | N/A |
REXR 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.
REXR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on REXR. 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 REXR
Butterflies on REXR are pinning bets - traders use them when they expect REXR 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.
REXR thesis for this butterfly
The market-implied 1-standard-deviation range for REXR extends from approximately $32.05 on the downside to $37.55 on the upside. A REXR long call butterfly is a pinning play: it pays maximum at the middle strike if REXR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current REXR IV rank near 4.33% 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 REXR at 27.60%. As a Real Estate name, REXR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REXR-specific events.
REXR 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. REXR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REXR alongside the broader basket even when REXR-specific fundamentals are unchanged. Always rebuild the position from current REXR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on REXR?
- A butterfly on REXR is the butterfly strategy applied to REXR (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 REXR stock trading near $34.80, the strikes shown on this page are snapped to the nearest listed REXR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REXR 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 REXR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.60%), 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 REXR butterfly?
- The breakeven for the REXR 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 REXR market-implied 1-standard-deviation expected move is approximately 7.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on REXR?
- Butterflies on REXR are pinning bets - traders use them when they expect REXR 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 REXR implied volatility affect this butterfly?
- REXR ATM IV is at 27.60% with IV rank near 4.33%, 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.