DSP Butterfly Strategy
DSP (Viant Technology Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Viant Technology Inc. operates as an advertising technology company. It provides ViantAI, an artificial intelligence product suite; Holistic, Omnichannel DSP, an integrated platform that manages omnichannel campaigns and access metrics; Household ID, which combines digital and personal identifiers into a normalized household profile; IRIS_ID, a content identifier that allows partners to share video-level data to power planning, targeting, and measurement solutions in ad-supported streaming media; and Viant Data Platform, which offers the ability to integrate first-party data with data from top third-party data providers in order to obtain key insights, reporting, and attribution opportunities. The company also offers Direct Access, a supply path optimization program that creates a direct path to premium inventory; Advanced Reporting and Measurement that offers conversion lift, multi-touch attribution, foot-traffic data reports, digital-out-of-home lift, sales reporting, and ROAS analytics; and Flexible Customer Engagement Model, which offers customers transparency and control over their advertising campaigns and underlying data infrastructure. The company sells its platform through a direct sales team focused on business development in various markets. It serves purchasers of programmatic advertising inventory and large, independent, and mid-market advertising agencies, as well as marketers. The company was founded in 1999 and is headquartered in Irvine, California.
DSP (Viant Technology Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $669.3M, a trailing P/E of 20.56, a beta of 1.00 versus the broader market, a 52-week range of 8.11-16.25, average daily share volume of 227K, a public-listing history dating back to 2021, approximately 386 full-time employees. These structural characteristics shape how DSP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places DSP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on DSP?
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 DSP snapshot
As of May 15, 2026, spot at $10.52, ATM IV 80.50%, IV rank 21.29%, expected move 23.08%. The butterfly on DSP 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 DSP specifically: DSP IV at 80.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a DSP butterfly, with a market-implied 1-standard-deviation move of approximately 23.08% (roughly $2.43 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 DSP expiries trade a higher absolute premium for lower per-day decay. Position sizing on DSP should anchor to the underlying notional of $10.52 per share and to the trader's directional view on DSP stock.
DSP butterfly setup
The DSP 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 DSP near $10.52, the first option leg uses a $9.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DSP 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 DSP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.99 | N/A |
| Sell 2 | Call | $10.52 | N/A |
| Buy 1 | Call | $11.05 | N/A |
DSP 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.
DSP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DSP. 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 DSP
Butterflies on DSP are pinning bets - traders use them when they expect DSP 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.
DSP thesis for this butterfly
The market-implied 1-standard-deviation range for DSP extends from approximately $8.09 on the downside to $12.95 on the upside. A DSP long call butterfly is a pinning play: it pays maximum at the middle strike if DSP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DSP IV rank near 21.29% 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 DSP at 80.50%. As a Technology name, DSP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DSP-specific events.
DSP 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. DSP positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DSP alongside the broader basket even when DSP-specific fundamentals are unchanged. Always rebuild the position from current DSP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DSP?
- A butterfly on DSP is the butterfly strategy applied to DSP (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 DSP stock trading near $10.52, the strikes shown on this page are snapped to the nearest listed DSP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DSP 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 DSP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 80.50%), 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 DSP butterfly?
- The breakeven for the DSP 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 DSP market-implied 1-standard-deviation expected move is approximately 23.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DSP?
- Butterflies on DSP are pinning bets - traders use them when they expect DSP 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 DSP implied volatility affect this butterfly?
- DSP ATM IV is at 80.50% with IV rank near 21.29%, 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.