How are GLNG 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 GLNG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.10%), the computed maximum profit is $227.50 per contract and the computed maximum loss is -$272.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GLNG butterfly?

The breakeven for the GLNG butterfly priced on this page is roughly $52.28 at expiration, derived from the August 14, 2026 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 GLNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GLNG implied volatility affect this butterfly?

GLNG ATM IV is at 31.10% with IV rank near 24.98%, 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.

GLNG Butterfly Strategy

GLNG (Golar LNG Limited), in the Energy sector, (Oil & Gas Midstream industry), listed on NASDAQ.

Golar LNG Limited specializes in providing marine-based infrastructure for the liquefaction and regasification of liquefied natural gas (LNG). The company's core business encompasses the design, construction, ownership, and operation of these specialized assets. Its operations are organized into two key segments: Shipping and Floating Liquefied Natural Gas (FLNG). Golar LNG's activities involve both the management and chartering of LNG carriers, FLNG vessels, and floating storage regasification units (FSRUs), in addition to operating third-party owned vessels. As of December 31, 2021, its fleet comprised nine LNG carriers, one FSRU, and three FLNGs. Established in 1946, the company maintains its headquarters in Hamilton, Bermuda.

GLNG (Golar LNG Limited) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $5.34B, a trailing P/E of 32.74, a beta of 0.04 versus the broader market, a 52-week range of 35.02-57.79, average daily share volume of 1.3M, a public-listing history dating back to 2003, approximately 500 full-time employees. These structural characteristics shape how GLNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.04 indicates GLNG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GLNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on GLNG?

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.

GLNG snapshot

As of August 14, 2026, spot at $52.35, ATM IV 31.10%, IV rank 24.98%, expected move 8.92%. The butterfly on GLNG below is built from the August 14, 2026 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 GLNG specifically: GLNG IV at 31.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a GLNG butterfly, with a market-implied 1-standard-deviation move of approximately 8.92% (roughly $4.67 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 GLNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on GLNG should anchor to the underlying notional of $52.35 per share and to the trader's directional view on GLNG stock.

GLNG butterfly setup

The GLNG butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GLNG at $52.35 on that close, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GLNG 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 GLNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$50.00	$3.40
Sell 2	Call	$50.00	$3.40
Buy 1	Call	$55.00	$1.13

GLNG butterfly risk and reward

Net Premium / Debit: +$227.50
Max Profit (per contract): $227.50
Max Loss (per contract): -$272.50
Breakeven(s): $52.28
Risk / Reward Ratio: 0.835

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.

GLNG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on GLNG. 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%	+$227.50
$11.58	-77.9%	+$227.50
$23.16	-55.8%	+$227.50
$34.73	-33.7%	+$227.50
$46.31	-11.5%	+$227.50
$57.88	+10.6%	-$272.50
$69.45	+32.7%	-$272.50
$81.03	+54.8%	-$272.50
$92.60	+76.9%	-$272.50
$104.17	+99.0%	-$272.50

When traders use butterfly on GLNG

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

GLNG thesis for this butterfly

The market-implied 1-standard-deviation range for GLNG extends from approximately $47.68 on the downside to $57.02 on the upside. A GLNG long call butterfly is a pinning play: it pays maximum at the middle strike if GLNG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GLNG IV rank near 24.98% 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 GLNG at 31.10%. As a Energy name, GLNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GLNG-specific events.

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

Frequently asked questions

What is a butterfly on GLNG?: A butterfly on GLNG is the butterfly strategy applied to GLNG (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 GLNG stock at $52.35 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed GLNG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are GLNG 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 GLNG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.10%), the computed maximum profit is $227.50 per contract and the computed maximum loss is -$272.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GLNG butterfly?: The breakeven for the GLNG butterfly priced on this page is roughly $52.28 at expiration, derived from the August 14, 2026 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 GLNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GLNG?: Butterflies on GLNG are pinning bets - traders use them when they expect GLNG 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 GLNG implied volatility affect this butterfly?: GLNG ATM IV is at 31.10% with IV rank near 24.98%, 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.