How are DTM 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 DTM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.00%), the computed maximum profit is $351.02 per contract and the computed maximum loss is -$642.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DTM butterfly?

The breakeven for the DTM butterfly priced on this page is roughly $141.43 and $148.58 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 DTM market-implied 1-standard-deviation expected move is approximately 5.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DTM implied volatility affect this butterfly?

DTM ATM IV is at 19.00% with IV rank near 1.32%, 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.

DTM Butterfly Strategy

DTM (DT Midstream, Inc.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

DT Midstream, Inc. provides integrated natural gas services in the United States. The company operates through two segments, Pipeline and Gathering. It develops, owns, and operates an integrated portfolio of interstate pipelines, intrastate pipelines, storage systems, lateral pipelines, gathering systems, related treatment plants, and compression and surface facilities. The company engages in the transportation and storage of natural gas for intermediate and end user customers; and collecting natural gas from points at or near customers' wells for delivery to plants for processing, to gathering pipelines for gathering, or to pipelines for transportation, as well as offers compression, dehydration, gas treatment, water impoundment, water storage, water transportation, and sand mining services. It serves natural gas producers, local distribution companies, electric power generators, industrials, and national marketers. The company was incorporated in 2021 and is headquartered in Detroit, Michigan.

DTM (DT Midstream, Inc.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $14.89B, a trailing P/E of 32.10, a beta of 0.78 versus the broader market, a 52-week range of 98.06-150.45, average daily share volume of 965K, a public-listing history dating back to 2021, approximately 556 full-time employees. These structural characteristics shape how DTM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.78 places DTM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DTM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on DTM?

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 DTM snapshot

As of May 15, 2026, spot at $147.28, ATM IV 19.00%, IV rank 1.32%, expected move 5.45%. The butterfly on DTM 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 DTM specifically: DTM IV at 19.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a DTM butterfly, with a market-implied 1-standard-deviation move of approximately 5.45% (roughly $8.02 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 DTM expiries trade a higher absolute premium for lower per-day decay. Position sizing on DTM should anchor to the underlying notional of $147.28 per share and to the trader's directional view on DTM stock.

DTM butterfly setup

The DTM 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 DTM near $147.28, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DTM 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 DTM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$140.00	$9.15
Sell 2	Call	$145.00	$5.10
Buy 1	Call	$155.00	$2.48

DTM butterfly risk and reward

Net Premium / Debit: -$142.50
Max Profit (per contract): $351.02
Max Loss (per contract): -$642.50
Breakeven(s): $141.43, $148.58
Risk / Reward Ratio: 0.546

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.

DTM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DTM. 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	-100.0%	-$142.50
$32.57	-77.9%	-$142.50
$65.14	-55.8%	-$142.50
$97.70	-33.7%	-$142.50
$130.26	-11.6%	-$142.50
$162.83	+10.6%	-$642.50
$195.39	+32.7%	-$642.50
$227.95	+54.8%	-$642.50
$260.52	+76.9%	-$642.50
$293.08	+99.0%	-$642.50

When traders use butterfly on DTM

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

DTM thesis for this butterfly

The market-implied 1-standard-deviation range for DTM extends from approximately $139.26 on the downside to $155.30 on the upside. A DTM long call butterfly is a pinning play: it pays maximum at the middle strike if DTM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DTM IV rank near 1.32% 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 DTM at 19.00%. As a Energy name, DTM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DTM-specific events.

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

Frequently asked questions

What is a butterfly on DTM?: A butterfly on DTM is the butterfly strategy applied to DTM (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 DTM stock trading near $147.28, the strikes shown on this page are snapped to the nearest listed DTM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DTM 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 DTM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.00%), the computed maximum profit is $351.02 per contract and the computed maximum loss is -$642.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DTM butterfly?: The breakeven for the DTM butterfly priced on this page is roughly $141.43 and $148.58 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 DTM market-implied 1-standard-deviation expected move is approximately 5.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DTM?: Butterflies on DTM are pinning bets - traders use them when they expect DTM 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 DTM implied volatility affect this butterfly?: DTM ATM IV is at 19.00% with IV rank near 1.32%, 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.