RZLV Butterfly Strategy
RZLV (Rezolve AI PLC), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Rezolve AI PLC specializes in providing artificial intelligence technologies for the commercial sector. Its platform is engineered to enable retailers, brands, and manufacturers to cultivate strong, interactive relationships with consumers, seamlessly bridging any divides created by geographical location or the specific device being utilized. The organization, which was previously known as Rezolve AI Limited, officially adopted its current name, Rezolve AI PLC, in March 2025. Founded in 2016, the company's primary operations are situated in London, United Kingdom.
RZLV (Rezolve AI PLC) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $1.07B, a beta of -0.15 versus the broader market, a 52-week range of 2.05-8.45, average daily share volume of 15.3M, a public-listing history dating back to 2000, approximately 573 full-time employees. These structural characteristics shape how RZLV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.15 indicates RZLV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on RZLV?
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.
RZLV snapshot
As of August 14, 2026, spot at $2.67, ATM IV 88.53%, IV rank 31.11%, expected move 25.38%. The butterfly on RZLV below is built from the 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 RZLV specifically: RZLV IV at 88.53% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 25.38% (roughly $0.68 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 RZLV expiries trade a higher absolute premium for lower per-day decay. Position sizing on RZLV should anchor to the underlying notional of $2.67 per share and to the trader's directional view on RZLV stock.
RZLV butterfly setup
The RZLV 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 RZLV at $2.67 on that close, the first option leg uses a $2.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RZLV 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 RZLV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.54 | N/A |
| Sell 2 | Call | $2.67 | N/A |
| Buy 1 | Call | $2.80 | N/A |
RZLV 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.
RZLV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RZLV. 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 RZLV
Butterflies on RZLV are pinning bets - traders use them when they expect RZLV 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.
RZLV thesis for this butterfly
The market-implied 1-standard-deviation range for RZLV extends from approximately $1.99 on the downside to $3.35 on the upside. A RZLV long call butterfly is a pinning play: it pays maximum at the middle strike if RZLV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RZLV IV rank near 31.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on RZLV should anchor more to the directional view and the expected-move geometry. As a Technology name, RZLV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RZLV-specific events.
RZLV 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. RZLV positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RZLV alongside the broader basket even when RZLV-specific fundamentals are unchanged. Always rebuild the position from current RZLV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RZLV?
- A butterfly on RZLV is the butterfly strategy applied to RZLV (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 RZLV stock at $2.67 on the most recent close, the strikes shown on this page are snapped to the nearest listed RZLV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RZLV 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 RZLV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 88.53%), 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 RZLV butterfly?
- The breakeven for the RZLV butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 RZLV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RZLV?
- Butterflies on RZLV are pinning bets - traders use them when they expect RZLV 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 RZLV implied volatility affect this butterfly?
- RZLV ATM IV is at 88.53% with IV rank near 31.11%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.