How are RRC 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 RRC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.90%), the computed maximum profit is $93.78 per contract and the computed maximum loss is -$87.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RRC butterfly?

The breakeven for the RRC butterfly priced on this page is roughly $38.13 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 RRC market-implied 1-standard-deviation expected move is approximately 9.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RRC implied volatility affect this butterfly?

RRC ATM IV is at 32.90% with IV rank near 17.67%, 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.

RRC Butterfly Strategy

RRC (Range Resources Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

Range Resources Corporation (RRC) functions as an autonomous energy enterprise within the United States, concentrating its efforts on natural gas, natural gas liquids (NGLs), and crude oil. The company's core activities involve the exploration, growth, and procurement of hydrocarbon assets. By the close of 2021, Range Resources managed 1,350 operational wells and possessed leasing rights for approximately 794,000 net acres, predominantly situated in the Appalachian region of the northeastern United States. Range Resources distributes its natural gas and NGLs to various clients, including utility providers, marketing and midstream businesses, industrial consumers, petrochemical end-users, commodity marketers/traders, and natural gas processors. Furthermore, it supplies oil and condensate to crude oil processing facilities, transportation firms, and refining and marketing organizations. Established in 1976, the company's main office is located in Fort Worth, Texas.

RRC (Range Resources Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $8.81B, a trailing P/E of 9.73, a beta of 0.40 versus the broader market, a 52-week range of 32.6-48.31, average daily share volume of 3.2M, a public-listing history dating back to 1980, approximately 565 full-time employees. These structural characteristics shape how RRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.40 indicates RRC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 9.73 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. RRC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RRC?

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 RRC snapshot

As of June 30, 2026, spot at $37.37, ATM IV 32.90%, IV rank 17.67%, expected move 9.43%. The butterfly on RRC 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 17-day expiry.

Why this butterfly structure on RRC specifically: RRC IV at 32.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a RRC butterfly, with a market-implied 1-standard-deviation move of approximately 9.43% (roughly $3.52 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on RRC should anchor to the underlying notional of $37.37 per share and to the trader's directional view on RRC stock.

RRC butterfly setup

The RRC 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 RRC near $37.37, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RRC chain at a 17-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 RRC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$36.00	$1.93
Sell 2	Call	$37.00	$1.28
Buy 1	Call	$39.00	$0.50

RRC butterfly risk and reward

Net Premium / Debit: +$12.50
Max Profit (per contract): $93.78
Max Loss (per contract): -$87.50
Breakeven(s): $38.13
Risk / Reward Ratio: 1.072

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.

RRC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RRC. 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%	+$12.50
$8.27	-77.9%	+$12.50
$16.53	-55.8%	+$12.50
$24.79	-33.7%	+$12.50
$33.06	-11.5%	+$12.50
$41.32	+10.6%	-$87.50
$49.58	+32.7%	-$87.50
$57.84	+54.8%	-$87.50
$66.10	+76.9%	-$87.50
$74.36	+99.0%	-$87.50

When traders use butterfly on RRC

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

RRC thesis for this butterfly

The market-implied 1-standard-deviation range for RRC extends from approximately $33.85 on the downside to $40.89 on the upside. A RRC long call butterfly is a pinning play: it pays maximum at the middle strike if RRC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RRC IV rank near 17.67% 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 RRC at 32.90%. As a Energy name, RRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RRC-specific events.

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

Frequently asked questions

What is a butterfly on RRC?: A butterfly on RRC is the butterfly strategy applied to RRC (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 RRC stock trading near $37.37, the strikes shown on this page are snapped to the nearest listed RRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RRC 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 RRC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.90%), the computed maximum profit is $93.78 per contract and the computed maximum loss is -$87.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RRC butterfly?: The breakeven for the RRC butterfly priced on this page is roughly $38.13 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 RRC market-implied 1-standard-deviation expected move is approximately 9.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RRC?: Butterflies on RRC are pinning bets - traders use them when they expect RRC 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 RRC implied volatility affect this butterfly?: RRC ATM IV is at 32.90% with IV rank near 17.67%, 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.