How are RNG 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 RNG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.45%), the computed maximum profit is $160.37 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RNG butterfly?

The breakeven for the RNG butterfly priced on this page is roughly $37.27 and $40.73 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 RNG market-implied 1-standard-deviation expected move is approximately 17.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RNG implied volatility affect this butterfly?

RNG ATM IV is at 62.45% with IV rank near 60.11%, 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.

RNG Butterfly Strategy

RNG (RingCentral, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.

RingCentral, Inc. delivers sophisticated cloud-based software-as-a-service (SaaS) solutions designed to empower businesses across North America to communicate, collaborate, and connect seamlessly. These core offerings, including both unified communications and comprehensive contact center capabilities, are built upon the company's proprietary "Message Video Phone" (MVP) platform. Its extensive product portfolio features "RingCentral Office," a robust platform enabling communication and collaboration through high-definition voice, video, SMS, team messaging, conferencing, online meetings, and fax. For customer service operations, the "RingCentral Contact Center" provides a collaborative, omnichannel solution, complemented by "RingCentral Engage Digital" for enterprise-level digital customer interactions, and "RingCentral Engage Voice" for cloud-based outbound and blended customer engagement catering to midsize and large organizations. Furthermore, "RingCentral Video" offers dedicated video meeting services with integrated team messaging, audio/video conferencing, file sharing, and management tools. Specialized solutions include "RingCentral Professional," a virtual cloud telephone service for inbound call management, and "RingCentral Fax" for online faxing.

RNG (RingCentral, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.27B, a trailing P/E of 37.32, a beta of 1.13 versus the broader market, a 52-week range of 23.59-49.85, average daily share volume of 1.7M, a public-listing history dating back to 2013, approximately 4K full-time employees. These structural characteristics shape how RNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.13 places RNG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 37.32 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. RNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RNG?

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 RNG snapshot

As of June 30, 2026, spot at $39.07, ATM IV 62.45%, IV rank 60.11%, expected move 17.90%. The butterfly on RNG 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 31-day expiry.

Why this butterfly structure on RNG specifically: RNG IV at 62.45% 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 17.90% (roughly $7.00 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on RNG should anchor to the underlying notional of $39.07 per share and to the trader's directional view on RNG stock.

RNG butterfly setup

The RNG 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 RNG near $39.07, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RNG chain at a 31-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 RNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$37.00	$4.15
Sell 2	Call	$39.00	$2.98
Buy 1	Call	$41.00	$2.08

RNG butterfly risk and reward

Net Premium / Debit: -$27.50
Max Profit (per contract): $160.37
Max Loss (per contract): -$27.50
Breakeven(s): $37.27, $40.73
Risk / Reward Ratio: 5.832

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.

RNG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RNG. 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%	-$27.50
$8.65	-77.9%	-$27.50
$17.28	-55.8%	-$27.50
$25.92	-33.7%	-$27.50
$34.56	-11.5%	-$27.50
$43.20	+10.6%	-$27.50
$51.83	+32.7%	-$27.50
$60.47	+54.8%	-$27.50
$69.11	+76.9%	-$27.50
$77.75	+99.0%	-$27.50

When traders use butterfly on RNG

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

RNG thesis for this butterfly

The market-implied 1-standard-deviation range for RNG extends from approximately $32.07 on the downside to $46.07 on the upside. A RNG long call butterfly is a pinning play: it pays maximum at the middle strike if RNG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RNG IV rank near 60.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on RNG should anchor more to the directional view and the expected-move geometry. As a Technology name, RNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RNG-specific events.

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

Frequently asked questions

What is a butterfly on RNG?: A butterfly on RNG is the butterfly strategy applied to RNG (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 RNG stock trading near $39.07, the strikes shown on this page are snapped to the nearest listed RNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RNG 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 RNG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.45%), the computed maximum profit is $160.37 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RNG butterfly?: The breakeven for the RNG butterfly priced on this page is roughly $37.27 and $40.73 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 RNG market-implied 1-standard-deviation expected move is approximately 17.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RNG?: Butterflies on RNG are pinning bets - traders use them when they expect RNG 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 RNG implied volatility affect this butterfly?: RNG ATM IV is at 62.45% with IV rank near 60.11%, 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.