How are RUN 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 RUN butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 63.61%), the computed maximum profit is $44.00 per contract and the computed maximum loss is -$56.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RUN butterfly?

The breakeven for the RUN butterfly priced on this page is roughly $10.44 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 RUN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RUN implied volatility affect this butterfly?

RUN ATM IV is at 63.61% with IV rank near 14.43%, 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.

RUN Butterfly Strategy

RUN (Sunrun Inc.), in the Technology sector, (Solar industry), listed on NASDAQ.

Sunrun Inc. is a company operating in the United States that specializes in providing comprehensive residential solar energy solutions. Their services encompass the entire lifecycle of a solar system, from initial design and development through installation, sales, ongoing ownership, and maintenance. In addition to complete solar energy systems, Sunrun also offers individual components like solar panels and racking equipment. They further enhance their offerings by integrating battery storage capabilities with their solar installations. Residential homeowners are the primary clientele for Sunrun. The company utilizes a direct-to-consumer sales approach, employing a broad spectrum of marketing and sales channels, including online platforms, retail partnerships, mass and digital media advertising, door-to-door canvassing, field marketing, and referral programs.

RUN (Sunrun Inc.) trades in the Technology sector, specifically Solar, with a market capitalization of approximately $2.35B, a trailing P/E of 29.53, a beta of 2.35 versus the broader market, a 52-week range of 8.61-22.44, average daily share volume of 9.8M, a public-listing history dating back to 2015, approximately 9K full-time employees. These structural characteristics shape how RUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.35 indicates RUN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on RUN?

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.

RUN snapshot

As of August 14, 2026, spot at $10.18, ATM IV 63.61%, IV rank 14.43%, expected move 18.24%. The butterfly on RUN 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 35-day expiry.

Why this butterfly structure on RUN specifically: RUN IV at 63.61% is on the cheap side of its 1-year range, which favors premium-buying structures like a RUN butterfly, with a market-implied 1-standard-deviation move of approximately 18.24% (roughly $1.86 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on RUN should anchor to the underlying notional of $10.18 per share and to the trader's directional view on RUN stock.

RUN butterfly setup

The RUN 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 RUN at $10.18 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RUN chain at a 35-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 RUN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$10.00	$0.94
Sell 2	Call	$10.00	$0.94
Buy 1	Call	$11.00	$0.50

RUN butterfly risk and reward

Net Premium / Debit: +$44.00
Max Profit (per contract): $44.00
Max Loss (per contract): -$56.00
Breakeven(s): $10.44
Risk / Reward Ratio: 0.786

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.

RUN butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RUN. 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	-99.9%	+$44.00
$2.26	-77.8%	+$44.00
$4.51	-55.7%	+$44.00
$6.76	-33.6%	+$44.00
$9.01	-11.5%	+$44.00
$11.26	+10.6%	-$56.00
$13.51	+32.7%	-$56.00
$15.76	+54.8%	-$56.00
$18.01	+76.9%	-$56.00
$20.26	+99.0%	-$56.00

When traders use butterfly on RUN

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

RUN thesis for this butterfly

The market-implied 1-standard-deviation range for RUN extends from approximately $8.32 on the downside to $12.04 on the upside. A RUN long call butterfly is a pinning play: it pays maximum at the middle strike if RUN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RUN IV rank near 14.43% 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 RUN at 63.61%. As a Technology name, RUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RUN-specific events.

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

Frequently asked questions

What is a butterfly on RUN?: A butterfly on RUN is the butterfly strategy applied to RUN (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 RUN stock at $10.18 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RUN chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RUN 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 RUN butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 63.61%), the computed maximum profit is $44.00 per contract and the computed maximum loss is -$56.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RUN butterfly?: The breakeven for the RUN butterfly priced on this page is roughly $10.44 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 RUN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RUN?: Butterflies on RUN are pinning bets - traders use them when they expect RUN 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 RUN implied volatility affect this butterfly?: RUN ATM IV is at 63.61% with IV rank near 14.43%, 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.