How are RVMD 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 RVMD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.60%), the computed maximum profit is $767.19 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RVMD butterfly?

The breakeven for the RVMD butterfly priced on this page is roughly $177.10 and $192.90 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 RVMD market-implied 1-standard-deviation expected move is approximately 15.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RVMD implied volatility affect this butterfly?

RVMD ATM IV is at 53.60% with IV rank near 20.10%, 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.

RVMD Butterfly Strategy

RVMD (Revolution Medicines, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Revolution Medicines, Inc. is a precision oncology firm operating in the clinical development stage, dedicated to creating innovative treatments that target novel pathways crucial for RAS-driven cancers. Its pipeline includes several promising drug candidates: RMC-4630, an SHP2 inhibitor, is currently undergoing Phase 1/2 clinical trials for various solid tumors, such as gynecological and colorectal cancers. The company's portfolio also features RMC-5845, a selective inhibitor designed to target SOS1, a protein responsible for activating RAS within cells, and RMC-5552, a highly selective inhibitor for hyperactive mTORC1 signaling found in cancerous cells. Further expanding its therapeutic arsenal, Revolution Medicines is advancing RMC-6291, which selectively inhibits mutated forms of KRASG12C(ON) and NRASG12C(ON). Another promising compound, RMC-6236, specifically targets and inhibits a range of active RAS(ON) variants. Its research efforts also encompass other active RAS inhibitors aimed at KRASG13C(ON) and KRASG12D(ON) mutations.

RVMD (Revolution Medicines, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $38.71B, a beta of 1.41 versus the broader market, a 52-week range of 34-184.39, average daily share volume of 3.2M, a public-listing history dating back to 2020, approximately 616 full-time employees. These structural characteristics shape how RVMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.41 indicates RVMD 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 RVMD?

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 RVMD snapshot

As of June 30, 2026, spot at $185.70, ATM IV 53.60%, IV rank 20.10%, expected move 15.37%. The butterfly on RVMD 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 RVMD specifically: RVMD IV at 53.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a RVMD butterfly, with a market-implied 1-standard-deviation move of approximately 15.37% (roughly $28.54 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 RVMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on RVMD should anchor to the underlying notional of $185.70 per share and to the trader's directional view on RVMD stock.

RVMD butterfly setup

The RVMD 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 RVMD near $185.70, the first option leg uses a $175.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RVMD 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 RVMD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$175.00	$15.25
Sell 2	Call	$185.00	$9.30
Buy 1	Call	$195.00	$5.45

RVMD butterfly risk and reward

Net Premium / Debit: -$210.00
Max Profit (per contract): $767.19
Max Loss (per contract): -$210.00
Breakeven(s): $177.10, $192.90
Risk / Reward Ratio: 3.653

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.

RVMD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RVMD. 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%	-$210.00
$41.07	-77.9%	-$210.00
$82.13	-55.8%	-$210.00
$123.18	-33.7%	-$210.00
$164.24	-11.6%	-$210.00
$205.30	+10.6%	-$210.00
$246.36	+32.7%	-$210.00
$287.42	+54.8%	-$210.00
$328.48	+76.9%	-$210.00
$369.53	+99.0%	-$210.00

When traders use butterfly on RVMD

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

RVMD thesis for this butterfly

The market-implied 1-standard-deviation range for RVMD extends from approximately $157.16 on the downside to $214.24 on the upside. A RVMD long call butterfly is a pinning play: it pays maximum at the middle strike if RVMD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RVMD IV rank near 20.10% 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 RVMD at 53.60%. As a Healthcare name, RVMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RVMD-specific events.

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

Frequently asked questions

What is a butterfly on RVMD?: A butterfly on RVMD is the butterfly strategy applied to RVMD (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 RVMD stock trading near $185.70, the strikes shown on this page are snapped to the nearest listed RVMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RVMD 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 RVMD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.60%), the computed maximum profit is $767.19 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RVMD butterfly?: The breakeven for the RVMD butterfly priced on this page is roughly $177.10 and $192.90 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 RVMD market-implied 1-standard-deviation expected move is approximately 15.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RVMD?: Butterflies on RVMD are pinning bets - traders use them when they expect RVMD 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 RVMD implied volatility affect this butterfly?: RVMD ATM IV is at 53.60% with IV rank near 20.10%, 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.