RMAX Butterfly Strategy
RMAX (RE/MAX Holdings, Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NYSE.
RE/MAX Holdings, Inc. operates as a franchisor of real estate brokerage services in the United States, Canada, and internationally. The company operates through three segments: Real Estate, Mortgage, and Marketing Funds. The Real Estate segment comprises real estate brokerage franchising services under the RE/MAX brand name, along with corporate-wide shared services. The Mortgage segment includes brokerage franchising services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand name; and mortgage loan processing software and services under the wemlo brand name. The Marketing Funds segment manages marketing campaigns and agent marketing technology. The company also provides the BoldTrail platform, which integrates a suite of digital products that enables agents, brokers, and teams to establish, manage, and grow client relationships; and the RE/MAX University platform, a learning hub designed to help each agent with their professional expertise.
RMAX (RE/MAX Holdings, Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $248.4M, a beta of 1.84 versus the broader market, a 52-week range of 5.46-12.51, average daily share volume of 739K, a public-listing history dating back to 2013, approximately 519 full-time employees. These structural characteristics shape how RMAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.84 indicates RMAX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. RMAX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on RMAX?
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.
RMAX snapshot
As of August 14, 2026, spot at $12.68, ATM IV 69.80%, IV rank 16.83%, expected move 20.01%. The butterfly on RMAX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on RMAX specifically: RMAX IV at 69.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a RMAX butterfly, with a market-implied 1-standard-deviation move of approximately 20.01% (roughly $2.54 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RMAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on RMAX should anchor to the underlying notional of $12.68 per share and to the trader's directional view on RMAX stock.
RMAX butterfly setup
The RMAX 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 RMAX at $12.68 on that close, the first option leg uses a $12.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RMAX chain at a 35-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 RMAX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $12.05 | N/A |
| Sell 2 | Call | $12.68 | N/A |
| Buy 1 | Call | $13.31 | N/A |
RMAX 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.
RMAX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RMAX. 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 RMAX
Butterflies on RMAX are pinning bets - traders use them when they expect RMAX 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.
RMAX thesis for this butterfly
The market-implied 1-standard-deviation range for RMAX extends from approximately $10.14 on the downside to $15.22 on the upside. A RMAX long call butterfly is a pinning play: it pays maximum at the middle strike if RMAX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RMAX IV rank near 16.83% 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 RMAX at 69.80%. As a Real Estate name, RMAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RMAX-specific events.
RMAX 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. RMAX positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RMAX alongside the broader basket even when RMAX-specific fundamentals are unchanged. Always rebuild the position from current RMAX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RMAX?
- A butterfly on RMAX is the butterfly strategy applied to RMAX (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 RMAX stock at $12.68 on the most recent close, the strikes shown on this page are snapped to the nearest listed RMAX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RMAX 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 RMAX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 69.80%), 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 RMAX butterfly?
- The breakeven for the RMAX butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The RMAX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RMAX?
- Butterflies on RMAX are pinning bets - traders use them when they expect RMAX 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 RMAX implied volatility affect this butterfly?
- RMAX ATM IV is at 69.80% with IV rank near 16.83%, 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.