How are RPM 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 RPM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is $451.06 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RPM butterfly?

The breakeven for the RPM butterfly priced on this page is roughly $90.27 and $99.68 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 RPM market-implied 1-standard-deviation expected move is approximately 9.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RPM implied volatility affect this butterfly?

RPM ATM IV is at 31.90% with IV rank near 13.21%, 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.

RPM Butterfly Strategy

RPM (RPM International Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.

RPM International Inc. manufactures, markets, and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and institutional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; solutions for fire stopping and intumescent steel coating, and manufacturing industry; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers paint contractors and the DIYers solutions, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulk, sealant, adhesive, insulating foam, spackling, glazing, patch, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.

RPM (RPM International Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $12.44B, a trailing P/E of 18.55, a beta of 1.04 versus the broader market, a 52-week range of 92.92-129.12, average daily share volume of 953K, a public-listing history dating back to 1980, approximately 17K full-time employees. These structural characteristics shape how RPM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places RPM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RPM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RPM?

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 RPM snapshot

As of May 15, 2026, spot at $95.64, ATM IV 31.90%, IV rank 13.21%, expected move 9.15%. The butterfly on RPM 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 RPM specifically: RPM IV at 31.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a RPM butterfly, with a market-implied 1-standard-deviation move of approximately 9.15% (roughly $8.75 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 RPM expiries trade a higher absolute premium for lower per-day decay. Position sizing on RPM should anchor to the underlying notional of $95.64 per share and to the trader's directional view on RPM stock.

RPM butterfly setup

The RPM 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 RPM near $95.64, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RPM 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 RPM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$90.00	$8.20
Sell 2	Call	$95.00	$4.95
Buy 1	Call	$100.00	$2.03

RPM butterfly risk and reward

Net Premium / Debit: -$32.50
Max Profit (per contract): $451.06
Max Loss (per contract): -$32.50
Breakeven(s): $90.27, $99.68
Risk / Reward Ratio: 13.879

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.

RPM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RPM. 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%	-$32.50
$21.16	-77.9%	-$32.50
$42.30	-55.8%	-$32.50
$63.45	-33.7%	-$32.50
$84.59	-11.6%	-$32.50
$105.74	+10.6%	-$32.50
$126.88	+32.7%	-$32.50
$148.03	+54.8%	-$32.50
$169.17	+76.9%	-$32.50
$190.32	+99.0%	-$32.50

When traders use butterfly on RPM

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

RPM thesis for this butterfly

The market-implied 1-standard-deviation range for RPM extends from approximately $86.89 on the downside to $104.39 on the upside. A RPM long call butterfly is a pinning play: it pays maximum at the middle strike if RPM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RPM IV rank near 13.21% 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 RPM at 31.90%. As a Basic Materials name, RPM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RPM-specific events.

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

Frequently asked questions

What is a butterfly on RPM?: A butterfly on RPM is the butterfly strategy applied to RPM (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 RPM stock trading near $95.64, the strikes shown on this page are snapped to the nearest listed RPM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RPM 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 RPM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is $451.06 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RPM butterfly?: The breakeven for the RPM butterfly priced on this page is roughly $90.27 and $99.68 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 RPM market-implied 1-standard-deviation expected move is approximately 9.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RPM?: Butterflies on RPM are pinning bets - traders use them when they expect RPM 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 RPM implied volatility affect this butterfly?: RPM ATM IV is at 31.90% with IV rank near 13.21%, 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.