RR Butterfly Strategy
RR (Richtech Robotics Inc. Class B Common Stock), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Richtech Robotics Inc. develops, manufactures, deploys, and sells robotic solutions for automation in the service industry. The company offers indoor transport and delivery, sanitation, and food and beverage automation solutions, such as ADAM and ARM worker robots; delivery robots, including Matradee, Matradee X, Matradee L, Richie, and Robbie; and cleaning robots comprising DUST-E SX, and DUST-E MX, as well as accessories, such as bus tubs, cup holders, magnetic tray cases, smartwatches, table location systems, and tray covers. It primarily serves restaurants, hotels, casinos, senior living centers, factories, and retail centers, as well as hospitals, and movie theaters. The company was formerly known as Richtech Creative Displays LLC and changed its name to Richtech Robotics Inc. on June 22, 2022. Richtech Robotics Inc. was incorporated in 2016 and is headquartered in Las Vegas, Nevada.
RR (Richtech Robotics Inc. Class B Common Stock) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $517.9M, a beta of -1.34 versus the broader market, a 52-week range of 1.71-7.43, average daily share volume of 9.8M, a public-listing history dating back to 2023, approximately 57 full-time employees. These structural characteristics shape how RR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.34 indicates RR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on RR?
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 RR snapshot
As of May 15, 2026, spot at $2.70, ATM IV 127.74%, IV rank 35.60%, expected move 36.62%. The butterfly on RR 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 28-day expiry.
Why this butterfly structure on RR specifically: RR IV at 127.74% 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 36.62% (roughly $0.99 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RR expiries trade a higher absolute premium for lower per-day decay. Position sizing on RR should anchor to the underlying notional of $2.70 per share and to the trader's directional view on RR stock.
RR butterfly setup
The RR 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 RR near $2.70, the first option leg uses a $2.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RR chain at a 28-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 RR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.57 | N/A |
| Sell 2 | Call | $2.70 | N/A |
| Buy 1 | Call | $2.84 | N/A |
RR 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.
RR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RR. 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 RR
Butterflies on RR are pinning bets - traders use them when they expect RR 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.
RR thesis for this butterfly
The market-implied 1-standard-deviation range for RR extends from approximately $1.71 on the downside to $3.69 on the upside. A RR long call butterfly is a pinning play: it pays maximum at the middle strike if RR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RR IV rank near 35.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on RR should anchor more to the directional view and the expected-move geometry. As a Industrials name, RR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RR-specific events.
RR 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. RR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RR alongside the broader basket even when RR-specific fundamentals are unchanged. Always rebuild the position from current RR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RR?
- A butterfly on RR is the butterfly strategy applied to RR (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 RR stock trading near $2.70, the strikes shown on this page are snapped to the nearest listed RR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RR 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 RR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 127.74%), 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 RR butterfly?
- The breakeven for the RR 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 RR market-implied 1-standard-deviation expected move is approximately 36.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RR?
- Butterflies on RR are pinning bets - traders use them when they expect RR 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 RR implied volatility affect this butterfly?
- RR ATM IV is at 127.74% with IV rank near 35.60%, 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.