DGNX Butterfly Strategy
DGNX (Diginex Limited), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Diginex Limited, through its subsidiaries, engages in the provision of environmental, social, and governance (ESG) reporting solution services, advisory services, and developing customization solutions in Hong Kong, the United Kingdom, and the United States. Its suite of products includes digninexESG, a cloud based ESG platform that offers end to end reporting from topic discovery, data collection, and collaborative report publishing services; diginexLUMEN that allows companies to execute supply chain risk assessments; diginexAPPRISE, a multilingual application that collects standardized, actionable data related to working conditions directly from workers in supply chains; diginexCLIMATE, a carbon footprint calculator based on the GHG protocols; diginexADVISORY that provides clients strategy and advisory support for credible reporting; diginexPARTNERS that develops white label versions of diginexESG and diginexLUMEN; and diginexMANAGEDSERVICES that provides oversight and support to clients. The company was founded in 2020 and is headquartered in Telegraph Bay, Hong Kong.
DGNX (Diginex Limited) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $34.9M, a beta of -2.63 versus the broader market, a 52-week range of 1.15-318.84, average daily share volume of 528K, a public-listing history dating back to 2025, approximately 19 full-time employees. These structural characteristics shape how DGNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.63 indicates DGNX 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 DGNX?
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 DGNX snapshot
As of May 15, 2026, spot at $0.97, ATM IV 404.40%, IV rank 83.01%, expected move 115.94%. The butterfly on DGNX 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 DGNX specifically: DGNX IV at 404.40% is rich versus its 1-year range, which makes a premium-buying DGNX butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 115.94% (roughly $1.12 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 DGNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on DGNX should anchor to the underlying notional of $0.97 per share and to the trader's directional view on DGNX stock.
DGNX butterfly setup
The DGNX 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 DGNX near $0.97, the first option leg uses a $0.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DGNX 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 DGNX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.92 | N/A |
| Sell 2 | Call | $0.97 | N/A |
| Buy 1 | Call | $1.02 | N/A |
DGNX 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.
DGNX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DGNX. 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 DGNX
Butterflies on DGNX are pinning bets - traders use them when they expect DGNX 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.
DGNX thesis for this butterfly
The market-implied 1-standard-deviation range for DGNX extends from approximately $-0.15 on the downside to $2.09 on the upside. A DGNX long call butterfly is a pinning play: it pays maximum at the middle strike if DGNX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DGNX IV rank near 83.01% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on DGNX at 404.40%. As a Technology name, DGNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DGNX-specific events.
DGNX 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. DGNX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DGNX alongside the broader basket even when DGNX-specific fundamentals are unchanged. Always rebuild the position from current DGNX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DGNX?
- A butterfly on DGNX is the butterfly strategy applied to DGNX (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 DGNX stock trading near $0.97, the strikes shown on this page are snapped to the nearest listed DGNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DGNX 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 DGNX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 404.40%), 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 DGNX butterfly?
- The breakeven for the DGNX 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 DGNX market-implied 1-standard-deviation expected move is approximately 115.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DGNX?
- Butterflies on DGNX are pinning bets - traders use them when they expect DGNX 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 DGNX implied volatility affect this butterfly?
- DGNX ATM IV is at 404.40% with IV rank near 83.01%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.