How are RLAY 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 RLAY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 113.30%), the computed maximum profit is $10.00 per contract and the computed maximum loss is -$90.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RLAY butterfly?

The breakeven for the RLAY butterfly priced on this page is roughly $12.90 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 RLAY market-implied 1-standard-deviation expected move is approximately 32.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RLAY implied volatility affect this butterfly?

RLAY ATM IV is at 113.30% with IV rank near 18.35%, 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.

RLAY Butterfly Strategy

RLAY (Relay Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Relay Therapeutics, Inc. operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and RLY-1971, an oral small molecule inhibitor of protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2 that is in Phase 1 trial in patients with advanced solid tumors. It has collaboration and license agreements with D. E. Shaw Research, LLC to research certain biological targets through the use of D.

RLAY (Relay Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.53B, a beta of 1.75 versus the broader market, a 52-week range of 2.67-17.32, average daily share volume of 3.0M, a public-listing history dating back to 2020, approximately 259 full-time employees. These structural characteristics shape how RLAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.75 indicates RLAY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on RLAY?

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 RLAY snapshot

As of May 15, 2026, spot at $12.54, ATM IV 113.30%, IV rank 18.35%, expected move 32.48%. The butterfly on RLAY 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 RLAY specifically: RLAY IV at 113.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a RLAY butterfly, with a market-implied 1-standard-deviation move of approximately 32.48% (roughly $4.07 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 RLAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RLAY should anchor to the underlying notional of $12.54 per share and to the trader's directional view on RLAY stock.

RLAY butterfly setup

The RLAY 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 RLAY near $12.54, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RLAY 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 RLAY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$12.00	$2.25
Sell 2	Call	$13.00	$1.35
Buy 1	Call	$13.00	$1.35

RLAY butterfly risk and reward

Net Premium / Debit: -$90.00
Max Profit (per contract): $10.00
Max Loss (per contract): -$90.00
Breakeven(s): $12.90
Risk / Reward Ratio: 0.111

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.

RLAY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RLAY. 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	-99.9%	-$90.00
$2.78	-77.8%	-$90.00
$5.55	-55.7%	-$90.00
$8.32	-33.6%	-$90.00
$11.10	-11.5%	-$90.00
$13.87	+10.6%	+$10.00
$16.64	+32.7%	+$10.00
$19.41	+54.8%	+$10.00
$22.18	+76.9%	+$10.00
$24.95	+99.0%	+$10.00

When traders use butterfly on RLAY

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

RLAY thesis for this butterfly

The market-implied 1-standard-deviation range for RLAY extends from approximately $8.47 on the downside to $16.61 on the upside. A RLAY long call butterfly is a pinning play: it pays maximum at the middle strike if RLAY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RLAY IV rank near 18.35% 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 RLAY at 113.30%. As a Healthcare name, RLAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RLAY-specific events.

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

Frequently asked questions

What is a butterfly on RLAY?: A butterfly on RLAY is the butterfly strategy applied to RLAY (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 RLAY stock trading near $12.54, the strikes shown on this page are snapped to the nearest listed RLAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RLAY 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 RLAY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 113.30%), the computed maximum profit is $10.00 per contract and the computed maximum loss is -$90.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RLAY butterfly?: The breakeven for the RLAY butterfly priced on this page is roughly $12.90 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 RLAY market-implied 1-standard-deviation expected move is approximately 32.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RLAY?: Butterflies on RLAY are pinning bets - traders use them when they expect RLAY 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 RLAY implied volatility affect this butterfly?: RLAY ATM IV is at 113.30% with IV rank near 18.35%, 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.