How are RTX 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 RTX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 21.17%), the computed maximum profit is $764.58 per contract and the computed maximum loss is -$650.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RTX butterfly?

The breakeven for the RTX butterfly priced on this page is roughly $211.51 and $228.50 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The RTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RTX implied volatility affect this butterfly?

RTX ATM IV is at 21.17% with IV rank near 19.02%, 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.

RTX Butterfly Strategy

RTX (RTX Corporation), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

RTX Corporation, a major player in the aerospace and defense sectors, provides sophisticated systems and extensive services to a diverse global clientele. This includes commercial entities, military organizations, and government agencies, both within the United States and internationally. The company's operations are divided into three primary business units: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace segment delivers a broad range of aerospace and defense products, alongside comprehensive aftermarket support solutions. Its customer base spans manufacturers of civil and military aircraft, commercial airlines, and operators in regional, business, general aviation, defense, and commercial space ventures. This division's offerings cover the design, production, and maintenance of aircraft interior components, such as oxygen systems, food and beverage preparation and storage facilities, galley systems, and lavatory and wastewater management.

RTX (RTX Corporation) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $300.51B, a trailing P/E of 38.88, a beta of 0.29 versus the broader market, a 52-week range of 150.61-226.88, average daily share volume of 5.3M, a public-listing history dating back to 1952, approximately 180K full-time employees. These structural characteristics shape how RTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.29 indicates RTX 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 38.88 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. RTX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RTX?

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.

RTX snapshot

As of August 14, 2026, spot at $222.50, ATM IV 21.17%, IV rank 19.02%, expected move 6.07%. The butterfly on RTX below is built from the August 14, 2026 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 RTX specifically: RTX IV at 21.17% is on the cheap side of its 1-year range, which favors premium-buying structures like a RTX butterfly, with a market-implied 1-standard-deviation move of approximately 6.07% (roughly $13.50 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 RTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on RTX should anchor to the underlying notional of $222.50 per share and to the trader's directional view on RTX stock.

RTX butterfly setup

The RTX butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RTX at $222.50 on that close, the first option leg uses a $210.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RTX 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 RTX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$210.00	$13.70
Sell 2	Call	$220.00	$6.83
Buy 1	Call	$235.00	$1.46

RTX butterfly risk and reward

Net Premium / Debit: -$150.50
Max Profit (per contract): $764.58
Max Loss (per contract): -$650.50
Breakeven(s): $211.51, $228.50
Risk / Reward Ratio: 1.175

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.

RTX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RTX. 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%	-$150.50
$49.20	-77.9%	-$150.50
$98.40	-55.8%	-$150.50
$147.59	-33.7%	-$150.50
$196.79	-11.6%	-$150.50
$245.98	+10.6%	-$650.50
$295.18	+32.7%	-$650.50
$344.37	+54.8%	-$650.50
$393.57	+76.9%	-$650.50
$442.76	+99.0%	-$650.50

When traders use butterfly on RTX

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

RTX thesis for this butterfly

The market-implied 1-standard-deviation range for RTX extends from approximately $209.00 on the downside to $236.00 on the upside. A RTX long call butterfly is a pinning play: it pays maximum at the middle strike if RTX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RTX IV rank near 19.02% 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 RTX at 21.17%. As a Industrials name, RTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RTX-specific events.

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

Frequently asked questions

What is a butterfly on RTX?: A butterfly on RTX is the butterfly strategy applied to RTX (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 RTX stock at $222.50 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RTX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RTX 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 RTX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 21.17%), the computed maximum profit is $764.58 per contract and the computed maximum loss is -$650.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RTX butterfly?: The breakeven for the RTX butterfly priced on this page is roughly $211.51 and $228.50 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The RTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RTX?: Butterflies on RTX are pinning bets - traders use them when they expect RTX 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 RTX implied volatility affect this butterfly?: RTX ATM IV is at 21.17% with IV rank near 19.02%, 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.