How are RSG 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 RSG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.30%), the computed maximum profit is $533.53 per contract and the computed maximum loss is -$372.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RSG butterfly?

The breakeven for the RSG butterfly priced on this page is roughly $203.73 and $216.28 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 RSG market-implied 1-standard-deviation expected move is approximately 5.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RSG implied volatility affect this butterfly?

RSG ATM IV is at 19.30% with IV rank near 1.35%, 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.

RSG Butterfly Strategy

RSG (Republic Services, Inc.), in the Industrials sector, (Waste Management industry), listed on NYSE.

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. Its collection services include curbside collection of material for transport to transfer stations, landfills, or recycling processing centers; supply of recycling and waste containers; and renting of compactors. In addition, the company engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill and transfer services. Further, it offers disposal of non-hazardous solid and liquid material and in-plant services, such as transportation and logistics. It serves small-container, large-container, and residential customers.

RSG (Republic Services, Inc.) trades in the Industrials sector, specifically Waste Management, with a market capitalization of approximately $62.66B, a trailing P/E of 29.02, a beta of 0.44 versus the broader market, a 52-week range of 196.41-258.75, average daily share volume of 1.5M, a public-listing history dating back to 1998, approximately 42K full-time employees. These structural characteristics shape how RSG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.44 indicates RSG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. RSG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RSG?

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 RSG snapshot

As of May 15, 2026, spot at $208.01, ATM IV 19.30%, IV rank 1.35%, expected move 5.53%. The butterfly on RSG 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 RSG specifically: RSG IV at 19.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a RSG butterfly, with a market-implied 1-standard-deviation move of approximately 5.53% (roughly $11.51 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 RSG expiries trade a higher absolute premium for lower per-day decay. Position sizing on RSG should anchor to the underlying notional of $208.01 per share and to the trader's directional view on RSG stock.

RSG butterfly setup

The RSG 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 RSG near $208.01, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RSG 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 RSG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$200.00	$11.10
Sell 2	Call	$210.00	$4.30
Buy 1	Call	$220.00	$1.23

RSG butterfly risk and reward

Net Premium / Debit: -$372.50
Max Profit (per contract): $533.53
Max Loss (per contract): -$372.50
Breakeven(s): $203.73, $216.28
Risk / Reward Ratio: 1.432

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.

RSG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RSG. 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%	-$372.50
$46.00	-77.9%	-$372.50
$91.99	-55.8%	-$372.50
$137.98	-33.7%	-$372.50
$183.97	-11.6%	-$372.50
$229.97	+10.6%	-$372.50
$275.96	+32.7%	-$372.50
$321.95	+54.8%	-$372.50
$367.94	+76.9%	-$372.50
$413.93	+99.0%	-$372.50

When traders use butterfly on RSG

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

RSG thesis for this butterfly

The market-implied 1-standard-deviation range for RSG extends from approximately $196.50 on the downside to $219.52 on the upside. A RSG long call butterfly is a pinning play: it pays maximum at the middle strike if RSG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RSG IV rank near 1.35% 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 RSG at 19.30%. As a Industrials name, RSG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RSG-specific events.

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

Frequently asked questions

What is a butterfly on RSG?: A butterfly on RSG is the butterfly strategy applied to RSG (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 RSG stock trading near $208.01, the strikes shown on this page are snapped to the nearest listed RSG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RSG 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 RSG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.30%), the computed maximum profit is $533.53 per contract and the computed maximum loss is -$372.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RSG butterfly?: The breakeven for the RSG butterfly priced on this page is roughly $203.73 and $216.28 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 RSG market-implied 1-standard-deviation expected move is approximately 5.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RSG?: Butterflies on RSG are pinning bets - traders use them when they expect RSG 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 RSG implied volatility affect this butterfly?: RSG ATM IV is at 19.30% with IV rank near 1.35%, 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.