DLNG Butterfly Strategy
DLNG (Dynagas LNG Partners LP), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. It owns and operates liquefied natural gas (LNG) carriers. The company's fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.
DLNG (Dynagas LNG Partners LP) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $135.0M, a trailing P/E of 2.06, a beta of 0.53 versus the broader market, a 52-week range of 3.27-4.45, average daily share volume of 63K, a public-listing history dating back to 2013, approximately 10 full-time employees. These structural characteristics shape how DLNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.53 indicates DLNG 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 2.06 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. DLNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on DLNG?
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.
DLNG snapshot
As of August 14, 2026, spot at $3.88, ATM IV 104.30%, IV rank 36.68%, expected move 29.90%. The butterfly on DLNG 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 35-day expiry.
Why this butterfly structure on DLNG specifically: DLNG IV at 104.30% 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 29.90% (roughly $1.16 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DLNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on DLNG should anchor to the underlying notional of $3.88 per share and to the trader's directional view on DLNG stock.
DLNG butterfly setup
The DLNG 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 DLNG at $3.88 on that close, the first option leg uses a $3.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DLNG chain at a 35-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 DLNG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.69 | N/A |
| Sell 2 | Call | $3.88 | N/A |
| Buy 1 | Call | $4.07 | N/A |
DLNG 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.
DLNG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DLNG. 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 DLNG
Butterflies on DLNG are pinning bets - traders use them when they expect DLNG 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.
DLNG thesis for this butterfly
The market-implied 1-standard-deviation range for DLNG extends from approximately $2.72 on the downside to $5.04 on the upside. A DLNG long call butterfly is a pinning play: it pays maximum at the middle strike if DLNG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DLNG IV rank near 36.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on DLNG should anchor more to the directional view and the expected-move geometry. As a Industrials name, DLNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DLNG-specific events.
DLNG 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. DLNG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DLNG alongside the broader basket even when DLNG-specific fundamentals are unchanged. Always rebuild the position from current DLNG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DLNG?
- A butterfly on DLNG is the butterfly strategy applied to DLNG (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 DLNG stock at $3.88 on the most recent close, the strikes shown on this page are snapped to the nearest listed DLNG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DLNG 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 DLNG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 104.30%), 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 DLNG butterfly?
- The breakeven for the DLNG 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 DLNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 29.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DLNG?
- Butterflies on DLNG are pinning bets - traders use them when they expect DLNG 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 DLNG implied volatility affect this butterfly?
- DLNG ATM IV is at 104.30% with IV rank near 36.68%, 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.