DHT Butterfly Strategy
DHT (DHT Holdings, Inc.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. As of March 17, 2022, it had a fleet of 26 very large crude carriers with a capacity of 8,043,657 deadweight tons. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.
DHT (DHT Holdings, Inc.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $2.87B, a trailing P/E of 8.65, a beta of -0.09 versus the broader market, a 52-week range of 10.61-20.55, average daily share volume of 4.8M, a public-listing history dating back to 2005, approximately 924 full-time employees. These structural characteristics shape how DHT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.09 indicates DHT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 8.65 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. DHT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on DHT?
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 DHT snapshot
As of May 15, 2026, spot at $17.57, ATM IV 44.40%, IV rank 43.30%, expected move 12.73%. The butterfly on DHT 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 63-day expiry.
Why this butterfly structure on DHT specifically: DHT IV at 44.40% 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 12.73% (roughly $2.24 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DHT expiries trade a higher absolute premium for lower per-day decay. Position sizing on DHT should anchor to the underlying notional of $17.57 per share and to the trader's directional view on DHT stock.
DHT butterfly setup
The DHT 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 DHT near $17.57, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DHT chain at a 63-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 DHT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.00 | $1.35 |
| Sell 2 | Call | $18.00 | $0.95 |
| Buy 1 | Call | $18.00 | $0.95 |
DHT butterfly risk and reward
- Net Premium / Debit
- -$40.00
- Max Profit (per contract)
- $60.00
- Max Loss (per contract)
- -$40.00
- Breakeven(s)
- $17.40
- Risk / Reward Ratio
- 1.500
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.
DHT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DHT. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$40.00 |
| $3.89 | -77.8% | -$40.00 |
| $7.78 | -55.7% | -$40.00 |
| $11.66 | -33.6% | -$40.00 |
| $15.54 | -11.5% | -$40.00 |
| $19.43 | +10.6% | +$60.00 |
| $23.31 | +32.7% | +$60.00 |
| $27.20 | +54.8% | +$60.00 |
| $31.08 | +76.9% | +$60.00 |
| $34.96 | +99.0% | +$60.00 |
When traders use butterfly on DHT
Butterflies on DHT are pinning bets - traders use them when they expect DHT 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.
DHT thesis for this butterfly
The market-implied 1-standard-deviation range for DHT extends from approximately $15.33 on the downside to $19.81 on the upside. A DHT long call butterfly is a pinning play: it pays maximum at the middle strike if DHT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DHT IV rank near 43.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on DHT should anchor more to the directional view and the expected-move geometry. As a Energy name, DHT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DHT-specific events.
DHT 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. DHT positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DHT alongside the broader basket even when DHT-specific fundamentals are unchanged. Always rebuild the position from current DHT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DHT?
- A butterfly on DHT is the butterfly strategy applied to DHT (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 DHT stock trading near $17.57, the strikes shown on this page are snapped to the nearest listed DHT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DHT 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 DHT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.40%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DHT butterfly?
- The breakeven for the DHT butterfly priced on this page is roughly $17.40 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 DHT market-implied 1-standard-deviation expected move is approximately 12.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DHT?
- Butterflies on DHT are pinning bets - traders use them when they expect DHT 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 DHT implied volatility affect this butterfly?
- DHT ATM IV is at 44.40% with IV rank near 43.30%, 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.