How are RJF 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 RJF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.00%), the computed maximum profit is $527.39 per contract and the computed maximum loss is -$452.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RJF butterfly?

The breakeven for the RJF butterfly priced on this page is roughly $149.53 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 RJF market-implied 1-standard-deviation expected move is approximately 7.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RJF implied volatility affect this butterfly?

RJF ATM IV is at 26.00% with IV rank near 30.50%, 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.

RJF Butterfly Strategy

RJF (Raymond James Financial, Inc.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NYSE.

Raymond James Financial, Inc., a diversified financial services company, provides private client group, capital markets, asset management, banking, and other services to individuals, corporations, and municipalities in the United States, Canada, and Europe. The Private Client Group segment offers investment services, portfolio management services, insurance and annuity products, and mutual funds; support to third-party product partners, including sales and marketing support, as well as distribution and accounting, and administrative services; margin loans; and securities borrowing and lending services. The Capital Markets segment provides investment banking services, including equity underwriting, debt underwriting, and merger and acquisition advisory services; and fixed income and equity brokerage services. The Asset Management segment offers asset management, portfolio management, and related administrative services to retail and institutional clients; and administrative support services, such as record-keeping. The Raymond James Bank segment provides insured deposit accounts; commercial and industrial, commercial real estate (CRE) and CRE construction, tax-exempt, residential, securities-based, and other loans; and loan syndication services. The Other segment engages in the private equity investments, including various direct and third-party private equity investments; and legacy private equity funds.

RJF (Raymond James Financial, Inc.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $30.00B, a trailing P/E of 14.06, a beta of 1.00 versus the broader market, a 52-week range of 138.82-177.66, average daily share volume of 1.4M, a public-listing history dating back to 1983, approximately 25K full-time employees. These structural characteristics shape how RJF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.00 places RJF roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RJF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RJF?

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 RJF snapshot

As of May 15, 2026, spot at $154.02, ATM IV 26.00%, IV rank 30.50%, expected move 7.45%. The butterfly on RJF 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 RJF specifically: RJF IV at 26.00% 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 7.45% (roughly $11.48 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 RJF expiries trade a higher absolute premium for lower per-day decay. Position sizing on RJF should anchor to the underlying notional of $154.02 per share and to the trader's directional view on RJF stock.

RJF butterfly setup

The RJF 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 RJF near $154.02, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RJF 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 RJF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$145.00	$11.50
Sell 2	Call	$155.00	$4.80
Buy 1	Call	$160.00	$2.63

RJF butterfly risk and reward

Net Premium / Debit: -$452.50
Max Profit (per contract): $527.39
Max Loss (per contract): -$452.50
Breakeven(s): $149.53
Risk / Reward Ratio: 1.166

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.

RJF butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RJF. 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%	-$452.50
$34.06	-77.9%	-$452.50
$68.12	-55.8%	-$452.50
$102.17	-33.7%	-$452.50
$136.22	-11.6%	-$452.50
$170.28	+10.6%	+$47.50
$204.33	+32.7%	+$47.50
$238.38	+54.8%	+$47.50
$272.44	+76.9%	+$47.50
$306.49	+99.0%	+$47.50

When traders use butterfly on RJF

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

RJF thesis for this butterfly

The market-implied 1-standard-deviation range for RJF extends from approximately $142.54 on the downside to $165.50 on the upside. A RJF long call butterfly is a pinning play: it pays maximum at the middle strike if RJF settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RJF IV rank near 30.50% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on RJF should anchor more to the directional view and the expected-move geometry. As a Financial Services name, RJF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RJF-specific events.

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

Frequently asked questions

What is a butterfly on RJF?: A butterfly on RJF is the butterfly strategy applied to RJF (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 RJF stock trading near $154.02, the strikes shown on this page are snapped to the nearest listed RJF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RJF 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 RJF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.00%), the computed maximum profit is $527.39 per contract and the computed maximum loss is -$452.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RJF butterfly?: The breakeven for the RJF butterfly priced on this page is roughly $149.53 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 RJF market-implied 1-standard-deviation expected move is approximately 7.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RJF?: Butterflies on RJF are pinning bets - traders use them when they expect RJF 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 RJF implied volatility affect this butterfly?: RJF ATM IV is at 26.00% with IV rank near 30.50%, 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.