RXST Butterfly Strategy
RXST (RxSight, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
As a medical technology enterprise, RxSight, Inc. (which operated as Calhoun Vision, Inc. until its rebranding in February 2017) specializes in the innovation, manufacturing, and distribution of light-adjustable intraocular lenses (LALs). These advanced lenses are specifically designed for use in cataract surgery, serving patients in both domestic and international markets. The cornerstone of the company's offerings is the RxSight system, a sophisticated solution that enables ophthalmologists to precisely tailor and enhance a patient's visual acuity following cataract removal. An integral part of this system is the RxSight light delivery device, an in-office instrument. This device emits UV light in a carefully controlled pattern to modify the LAL, thereby ensuring optimal visual correction after the surgical procedure. RxSight's primary clientele consists of eye surgeons specializing in cataract treatments.
RXST (RxSight, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $221.9M, a beta of 1.13 versus the broader market, a 52-week range of 4.48-13.65, average daily share volume of 869K, a public-listing history dating back to 2021, approximately 498 full-time employees. These structural characteristics shape how RXST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places RXST roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on RXST?
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 RXST snapshot
As of June 29, 2026, spot at $5.00, ATM IV 28.50%, IV rank 3.80%, expected move 8.17%. The butterfly on RXST 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 18-day expiry.
Why this butterfly structure on RXST specifically: RXST IV at 28.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a RXST butterfly, with a market-implied 1-standard-deviation move of approximately 8.17% (roughly $0.41 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RXST expiries trade a higher absolute premium for lower per-day decay. Position sizing on RXST should anchor to the underlying notional of $5.00 per share and to the trader's directional view on RXST stock.
RXST butterfly setup
The RXST 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 RXST near $5.00, the first option leg uses a $4.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RXST chain at a 18-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 RXST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.75 | N/A |
| Sell 2 | Call | $5.00 | N/A |
| Buy 1 | Call | $5.25 | N/A |
RXST 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.
RXST butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RXST. 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 RXST
Butterflies on RXST are pinning bets - traders use them when they expect RXST 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.
RXST thesis for this butterfly
The market-implied 1-standard-deviation range for RXST extends from approximately $4.59 on the downside to $5.41 on the upside. A RXST long call butterfly is a pinning play: it pays maximum at the middle strike if RXST settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RXST IV rank near 3.80% 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 RXST at 28.50%. As a Healthcare name, RXST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RXST-specific events.
RXST 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. RXST positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RXST alongside the broader basket even when RXST-specific fundamentals are unchanged. Always rebuild the position from current RXST chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RXST?
- A butterfly on RXST is the butterfly strategy applied to RXST (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 RXST stock trading near $5.00, the strikes shown on this page are snapped to the nearest listed RXST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RXST 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 RXST butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.50%), 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 RXST butterfly?
- The breakeven for the RXST 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 RXST market-implied 1-standard-deviation expected move is approximately 8.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RXST?
- Butterflies on RXST are pinning bets - traders use them when they expect RXST 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 RXST implied volatility affect this butterfly?
- RXST ATM IV is at 28.50% with IV rank near 3.80%, 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.