NGX6 P&L Curve
Natural Gas Futures (November 2026) (NGX6) operates in the Energy Futures sector, specifically the Energy Futures industry, listed on NYMEX. Natural Gas Futures November 2026 contract: NYMEX Natural Gas futures (NG): Henry Hub-delivered natural gas contract, the primary US natural gas pricing benchmark.
A profit/loss curve charts the theoretical gain or loss of an options position across a range of underlying prices. It helps traders visualize risk, identify breakeven points, and compare strategies before committing capital.
- Exchange
- NYMEX
- Sector
- Energy Futures
- Industry
- Energy Futures
As of Oct 15, 2026, with a $3.24 spot price, 62.7% ATM implied volatility, and 12 days to the front expiration, an at-the-money long straddle carries an approximate combined premium near $0.29, producing breakevens at roughly $2.95 and $3.54. Market-implied 1-standard-deviation range extends from $2.66 to $3.82, which sets the relevant P&L evaluation window for most near-term strategies. Payoff diagrams should be rebuilt from the live options chain; the preceding values are illustrative and assume a single at-the-money straddle for reference.
Frequently asked NGX6 pl curve questions
- What does a NGX6 ATM straddle cost?
- As of Oct 15, 2026, using NGX6 end-of-day pricing (62.7% ATM IV, 12-day front expiration, $3.24 spot), an at-the-money long straddle (long call + long put at the same strike) carries an approximate combined premium near $0.29 per spread. Breakevens land at roughly $3.54 on the upside and $2.95 on the downside. The estimate uses the Brenner-Subrahmanyam approximation for at-the-money options under Black-Scholes.
- How do I read an options P&L curve?
- An options P&L curve plots theoretical position value at expiration (or at any chosen evaluation date) against the underlying price. The X-axis is the underlying price scenario, the Y-axis is position dollar P&L. The shape of the curve tells you the strategy's directional sensitivity, breakeven points, maximum profit and loss levels, and where time decay or volatility shifts will be most impactful. Multi-leg structures combine the curves of the individual legs to produce composite payoff diagrams.
- What's the difference between a P&L curve and a payoff diagram?
- Strictly: a payoff diagram shows option value at expiration (no time premium left), while a P&L curve typically shows position value at any evaluation date (with remaining time premium). The expiration payoff diagram has kinks at the strikes; the early P&L curve is smooth. For directional-vega trades, the early P&L curve also responds to IV shifts that the expiration payoff diagram does not capture - which is why options traders often look at both views.
- Why are illustrative NGX6 P&L numbers approximate?
- The numbers above use Black-Scholes assumptions (lognormal returns, constant volatility, no early exercise, no dividends). Real-world option prices reflect skew, term structure, jump risk, and (for US-style options) early exercise premium. Use the live options chain for actual quoted bid/ask prices when sizing trades; the values here illustrate magnitude only.