RUSHA Butterfly Strategy
RUSHA (Rush Enterprises, Inc.), in the Consumer Cyclical sector, (Auto - Dealerships industry), listed on NASDAQ.
Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, or Blue Bird. The company also provides new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance to its commercial vehicle customers. In addition, it provides equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services; body, chassis upfitting, and component installation services, as well as sells tires for use on commercial vehicles, new and used trailers, and vehicle telematics products; and manufactures compressed natural gas fuel systems and related component parts for commercial vehicles. The company serves regional and national fleets, corporations, local and state governments, and owner operators.
RUSHA (Rush Enterprises, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Dealerships, with a market capitalization of approximately $5.45B, a trailing P/E of 20.47, a beta of 0.93 versus the broader market, a 52-week range of 45.67-76.99, average daily share volume of 477K, a public-listing history dating back to 2003, approximately 8K full-time employees. These structural characteristics shape how RUSHA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places RUSHA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RUSHA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on RUSHA?
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 RUSHA snapshot
As of May 15, 2026, spot at $69.03, ATM IV 67.40%, IV rank 20.27%, expected move 19.32%. The butterfly on RUSHA 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 RUSHA specifically: RUSHA IV at 67.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a RUSHA butterfly, with a market-implied 1-standard-deviation move of approximately 19.32% (roughly $13.34 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 RUSHA expiries trade a higher absolute premium for lower per-day decay. Position sizing on RUSHA should anchor to the underlying notional of $69.03 per share and to the trader's directional view on RUSHA stock.
RUSHA butterfly setup
The RUSHA 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 RUSHA near $69.03, the first option leg uses a $65.58 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RUSHA 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 RUSHA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $65.58 | N/A |
| Sell 2 | Call | $69.03 | N/A |
| Buy 1 | Call | $72.48 | N/A |
RUSHA 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.
RUSHA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RUSHA. 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 RUSHA
Butterflies on RUSHA are pinning bets - traders use them when they expect RUSHA 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.
RUSHA thesis for this butterfly
The market-implied 1-standard-deviation range for RUSHA extends from approximately $55.69 on the downside to $82.37 on the upside. A RUSHA long call butterfly is a pinning play: it pays maximum at the middle strike if RUSHA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RUSHA IV rank near 20.27% 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 RUSHA at 67.40%. As a Consumer Cyclical name, RUSHA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RUSHA-specific events.
RUSHA 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. RUSHA positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RUSHA alongside the broader basket even when RUSHA-specific fundamentals are unchanged. Always rebuild the position from current RUSHA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RUSHA?
- A butterfly on RUSHA is the butterfly strategy applied to RUSHA (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 RUSHA stock trading near $69.03, the strikes shown on this page are snapped to the nearest listed RUSHA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RUSHA 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 RUSHA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 67.40%), 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 RUSHA butterfly?
- The breakeven for the RUSHA 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 RUSHA market-implied 1-standard-deviation expected move is approximately 19.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RUSHA?
- Butterflies on RUSHA are pinning bets - traders use them when they expect RUSHA 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 RUSHA implied volatility affect this butterfly?
- RUSHA ATM IV is at 67.40% with IV rank near 20.27%, 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.