RNST Butterfly Strategy
RNST (Renasant Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate1-4 family mortgage; real estatecommercial mortgage; real estateconstruction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates.
RNST (Renasant Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $3.61B, a trailing P/E of 16.06, a beta of 0.99 versus the broader market, a 52-week range of 33.04-42.11, average daily share volume of 702K, a public-listing history dating back to 1992, approximately 2K full-time employees. These structural characteristics shape how RNST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places RNST roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RNST pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on RNST?
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 RNST snapshot
As of May 15, 2026, spot at $39.16, ATM IV 22.10%, IV rank 16.28%, expected move 6.34%. The butterfly on RNST 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 RNST specifically: RNST IV at 22.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a RNST butterfly, with a market-implied 1-standard-deviation move of approximately 6.34% (roughly $2.48 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 RNST expiries trade a higher absolute premium for lower per-day decay. Position sizing on RNST should anchor to the underlying notional of $39.16 per share and to the trader's directional view on RNST stock.
RNST butterfly setup
The RNST 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 RNST near $39.16, the first option leg uses a $37.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RNST 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 RNST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.20 | N/A |
| Sell 2 | Call | $39.16 | N/A |
| Buy 1 | Call | $41.12 | N/A |
RNST 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.
RNST butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RNST. 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 RNST
Butterflies on RNST are pinning bets - traders use them when they expect RNST 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.
RNST thesis for this butterfly
The market-implied 1-standard-deviation range for RNST extends from approximately $36.68 on the downside to $41.64 on the upside. A RNST long call butterfly is a pinning play: it pays maximum at the middle strike if RNST settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RNST IV rank near 16.28% 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 RNST at 22.10%. As a Financial Services name, RNST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RNST-specific events.
RNST 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. RNST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RNST alongside the broader basket even when RNST-specific fundamentals are unchanged. Always rebuild the position from current RNST chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RNST?
- A butterfly on RNST is the butterfly strategy applied to RNST (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 RNST stock trading near $39.16, the strikes shown on this page are snapped to the nearest listed RNST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RNST 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 RNST butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.10%), 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 RNST butterfly?
- The breakeven for the RNST 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 RNST market-implied 1-standard-deviation expected move is approximately 6.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RNST?
- Butterflies on RNST are pinning bets - traders use them when they expect RNST 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 RNST implied volatility affect this butterfly?
- RNST ATM IV is at 22.10% with IV rank near 16.28%, 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.