FLNG Butterfly Strategy
FLNG (FLEX LNG Ltd.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
Flex LNG Ltd., through its subsidiaries, engages in the seaborne transportation of liquefied natural gas (LNG) worldwide. As of February 16, 2022, it owned and operated nine M-type electronically controlled gas injection LNG carriers; and four vessels with generation X dual fuel propulsion systems. It also provides chartering and management services. Flex LNG Ltd. was incorporated in 2006 and is based in Hamilton, Bermuda.
FLNG (FLEX LNG Ltd.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $1.71B, a trailing P/E of 22.90, a beta of 0.19 versus the broader market, a 52-week range of 21.72-33.4, average daily share volume of 626K, a public-listing history dating back to 2019, approximately 9 full-time employees. These structural characteristics shape how FLNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.19 indicates FLNG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FLNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FLNG?
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 FLNG snapshot
As of May 15, 2026, spot at $32.10, ATM IV 32.30%, IV rank 57.16%, expected move 9.26%. The butterfly on FLNG 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 98-day expiry.
Why this butterfly structure on FLNG specifically: FLNG IV at 32.30% 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 9.26% (roughly $2.97 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FLNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLNG should anchor to the underlying notional of $32.10 per share and to the trader's directional view on FLNG stock.
FLNG butterfly setup
The FLNG 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 FLNG near $32.10, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLNG chain at a 98-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 FLNG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $30.00 | $2.88 |
| Sell 2 | Call | $32.00 | $1.93 |
| Buy 1 | Call | $34.00 | $1.18 |
FLNG butterfly risk and reward
- Net Premium / Debit
- -$20.00
- Max Profit (per contract)
- $174.37
- Max Loss (per contract)
- -$20.00
- Breakeven(s)
- $30.20, $33.80
- Risk / Reward Ratio
- 8.719
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.
FLNG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FLNG. 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% | -$20.00 |
| $7.11 | -77.9% | -$20.00 |
| $14.20 | -55.8% | -$20.00 |
| $21.30 | -33.6% | -$20.00 |
| $28.40 | -11.5% | -$20.00 |
| $35.49 | +10.6% | -$20.00 |
| $42.59 | +32.7% | -$20.00 |
| $49.68 | +54.8% | -$20.00 |
| $56.78 | +76.9% | -$20.00 |
| $63.88 | +99.0% | -$20.00 |
When traders use butterfly on FLNG
Butterflies on FLNG are pinning bets - traders use them when they expect FLNG 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.
FLNG thesis for this butterfly
The market-implied 1-standard-deviation range for FLNG extends from approximately $29.13 on the downside to $35.07 on the upside. A FLNG long call butterfly is a pinning play: it pays maximum at the middle strike if FLNG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FLNG IV rank near 57.16% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FLNG should anchor more to the directional view and the expected-move geometry. As a Energy name, FLNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLNG-specific events.
FLNG 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. FLNG positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLNG alongside the broader basket even when FLNG-specific fundamentals are unchanged. Always rebuild the position from current FLNG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FLNG?
- A butterfly on FLNG is the butterfly strategy applied to FLNG (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 FLNG stock trading near $32.10, the strikes shown on this page are snapped to the nearest listed FLNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLNG 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 FLNG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.30%), the computed maximum profit is $174.37 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FLNG butterfly?
- The breakeven for the FLNG butterfly priced on this page is roughly $30.20 and $33.80 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 FLNG market-implied 1-standard-deviation expected move is approximately 9.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FLNG?
- Butterflies on FLNG are pinning bets - traders use them when they expect FLNG 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 FLNG implied volatility affect this butterfly?
- FLNG ATM IV is at 32.30% with IV rank near 57.16%, 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.