How are ROL 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 ROL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.20%), the computed maximum profit is $239.62 per contract and the computed maximum loss is $7.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ROL butterfly?

The breakeven for the ROL 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 ROL market-implied 1-standard-deviation expected move is approximately 7.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ROL implied volatility affect this butterfly?

ROL ATM IV is at 25.20% with IV rank near 9.91%, 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.

ROL Butterfly Strategy

ROL (Rollins, Inc.), in the Consumer Cyclical sector, (Personal Products & Services industry), listed on NYSE.

Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers traditional and baiting termite protection, as well as ancillary services. It serves clients directly, as well as through franchisee operations. Rollins, Inc. was incorporated in 1948 and is headquartered in Atlanta, Georgia.

ROL (Rollins, Inc.) trades in the Consumer Cyclical sector, specifically Personal Products & Services, with a market capitalization of approximately $25.43B, a trailing P/E of 48.04, a beta of 0.79 versus the broader market, a 52-week range of 51.95-66.14, average daily share volume of 3.1M, a public-listing history dating back to 1980, approximately 20K full-time employees. These structural characteristics shape how ROL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.79 places ROL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 48.04 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. ROL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ROL?

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 ROL snapshot

As of May 15, 2026, spot at $53.48, ATM IV 25.20%, IV rank 9.91%, expected move 7.22%. The butterfly on ROL 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 98-day expiry.

Why this butterfly structure on ROL specifically: ROL IV at 25.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ROL butterfly, with a market-implied 1-standard-deviation move of approximately 7.22% (roughly $3.86 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ROL expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROL should anchor to the underlying notional of $53.48 per share and to the trader's directional view on ROL stock.

ROL butterfly setup

The ROL 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 ROL near $53.48, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROL chain at a 98-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 ROL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$50.00	$5.35
Sell 2	Call	$52.50	$3.90
Buy 1	Call	$55.00	$2.38

ROL butterfly risk and reward

Net Premium / Debit: +$7.50
Max Profit (per contract): $239.62
Max Loss (per contract): $7.50
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 31.949

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.

ROL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ROL. 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%	+$7.50
$11.83	-77.9%	+$7.50
$23.66	-55.8%	+$7.50
$35.48	-33.7%	+$7.50
$47.30	-11.5%	+$7.50
$59.13	+10.6%	+$7.50
$70.95	+32.7%	+$7.50
$82.78	+54.8%	+$7.50
$94.60	+76.9%	+$7.50
$106.42	+99.0%	+$7.50

When traders use butterfly on ROL

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

ROL thesis for this butterfly

The market-implied 1-standard-deviation range for ROL extends from approximately $49.62 on the downside to $57.34 on the upside. A ROL long call butterfly is a pinning play: it pays maximum at the middle strike if ROL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ROL IV rank near 9.91% 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 ROL at 25.20%. As a Consumer Cyclical name, ROL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROL-specific events.

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

Frequently asked questions

What is a butterfly on ROL?: A butterfly on ROL is the butterfly strategy applied to ROL (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 ROL stock trading near $53.48, the strikes shown on this page are snapped to the nearest listed ROL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ROL 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 ROL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.20%), the computed maximum profit is $239.62 per contract and the computed maximum loss is $7.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ROL butterfly?: The breakeven for the ROL 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 ROL market-implied 1-standard-deviation expected move is approximately 7.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ROL?: Butterflies on ROL are pinning bets - traders use them when they expect ROL 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 ROL implied volatility affect this butterfly?: ROL ATM IV is at 25.20% with IV rank near 9.91%, 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.