How are DSGX 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 DSGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 41.30%), the computed maximum profit is $403.83 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DSGX butterfly?

The breakeven for the DSGX butterfly priced on this page is roughly $65.63 and $74.38 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 DSGX market-implied 1-standard-deviation expected move is approximately 11.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DSGX implied volatility affect this butterfly?

DSGX ATM IV is at 41.30% with IV rank near 5.40%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

DSGX Butterfly Strategy

DSGX (The Descartes Systems Group Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

The Descartes Systems Group Inc. (DSGX) offers comprehensive, cloud-native solutions designed to optimize business processes within the logistics and supply chain sectors. The primary objective is to significantly elevate the efficiency, operational excellence, and security posture for enterprises worldwide that heavily rely on robust logistics. At its core, the company offers a proprietary "Logistics Technology" platform. This platform provides a versatile array of modular, interconnected web and mobile applications, all accessible via the cloud, which collectively foster a collaborative ecosystem where various logistics stakeholders can seamlessly conduct transactions and manage operations. Descartes' extensive portfolio encompasses specialized solutions for route optimization, mobile workforce management, and telematics; comprehensive transportation management and e-commerce integration; customs and regulatory adherence; global trade data intelligence; logistics network facilitation; and specialized enterprise systems tailored for brokers and freight forwarders. Clients harness these adaptable Software-as-a-Service (SaaS) and data-driven offerings to meticulously plan and execute deliveries—including scheduling, tracking, and performance measurement.

DSGX (The Descartes Systems Group Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $6.04B, a trailing P/E of 34.17, a beta of 0.22 versus the broader market, a 52-week range of 62.56-109, average daily share volume of 558K, a public-listing history dating back to 1999, approximately 1K full-time employees. These structural characteristics shape how DSGX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.22 indicates DSGX 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 DSGX?

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 DSGX snapshot

As of June 30, 2026, spot at $69.31, ATM IV 41.30%, IV rank 5.40%, expected move 11.84%. The butterfly on DSGX 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 80-day expiry.

Why this butterfly structure on DSGX specifically: DSGX IV at 41.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a DSGX butterfly, with a market-implied 1-standard-deviation move of approximately 11.84% (roughly $8.21 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DSGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on DSGX should anchor to the underlying notional of $69.31 per share and to the trader's directional view on DSGX stock.

DSGX butterfly setup

The DSGX 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 DSGX near $69.31, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DSGX chain at a 80-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 DSGX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$65.00	$8.65
Sell 2	Call	$70.00	$5.90
Buy 1	Call	$75.00	$3.78

DSGX butterfly risk and reward

Net Premium / Debit: -$62.50
Max Profit (per contract): $403.83
Max Loss (per contract): -$62.50
Breakeven(s): $65.63, $74.38
Risk / Reward Ratio: 6.461

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.

DSGX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DSGX. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$62.50
$15.33	-77.9%	-$62.50
$30.66	-55.8%	-$62.50
$45.98	-33.7%	-$62.50
$61.30	-11.5%	-$62.50
$76.63	+10.6%	-$62.50
$91.95	+32.7%	-$62.50
$107.28	+54.8%	-$62.50
$122.60	+76.9%	-$62.50
$137.92	+99.0%	-$62.50

When traders use butterfly on DSGX

Butterflies on DSGX are pinning bets - traders use them when they expect DSGX 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.

DSGX thesis for this butterfly

The market-implied 1-standard-deviation range for DSGX extends from approximately $61.10 on the downside to $77.52 on the upside. A DSGX long call butterfly is a pinning play: it pays maximum at the middle strike if DSGX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DSGX IV rank near 5.40% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on DSGX at 41.30%. As a Technology name, DSGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DSGX-specific events.

DSGX 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. DSGX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DSGX alongside the broader basket even when DSGX-specific fundamentals are unchanged. Always rebuild the position from current DSGX chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on DSGX?: A butterfly on DSGX is the butterfly strategy applied to DSGX (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 DSGX stock trading near $69.31, the strikes shown on this page are snapped to the nearest listed DSGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DSGX 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 DSGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 41.30%), the computed maximum profit is $403.83 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DSGX butterfly?: The breakeven for the DSGX butterfly priced on this page is roughly $65.63 and $74.38 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 DSGX market-implied 1-standard-deviation expected move is approximately 11.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DSGX?: Butterflies on DSGX are pinning bets - traders use them when they expect DSGX 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 DSGX implied volatility affect this butterfly?: DSGX ATM IV is at 41.30% with IV rank near 5.40%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.