LINE Butterfly Strategy
LINE (Lineage, Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NASDAQ.
Lineage, Inc. engages in the provision of temperature-controlled warehouse real estate investment trust (REIT). It operates through the Global Warehousing and Global Integrated Solutions segments. The Global Warehousing segment composes of industrial real estate properties to provide temperature-controlled warehousing services to its customers. The Global Integrated Solutions segment consists of specialized cold-chain services. The company was founded in 2008 and is headquartered in Novi, MI.
LINE (Lineage, Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $9.06B, a beta of 0.66 versus the broader market, a 52-week range of 31.33-48.718, average daily share volume of 1.2M, a public-listing history dating back to 2024, approximately 26K full-time employees. These structural characteristics shape how LINE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates LINE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. LINE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on LINE?
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 LINE snapshot
As of May 15, 2026, spot at $38.67, ATM IV 43.00%, IV rank 10.90%, expected move 12.33%. The butterfly on LINE 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 245-day expiry.
Why this butterfly structure on LINE specifically: LINE IV at 43.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a LINE butterfly, with a market-implied 1-standard-deviation move of approximately 12.33% (roughly $4.77 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LINE expiries trade a higher absolute premium for lower per-day decay. Position sizing on LINE should anchor to the underlying notional of $38.67 per share and to the trader's directional view on LINE stock.
LINE butterfly setup
The LINE 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 LINE near $38.67, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LINE chain at a 245-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 LINE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $7.25 |
| Sell 2 | Call | $40.00 | $4.55 |
| Buy 1 | Call | $40.00 | $4.55 |
LINE butterfly risk and reward
- Net Premium / Debit
- -$270.00
- Max Profit (per contract)
- $230.00
- Max Loss (per contract)
- -$270.00
- Breakeven(s)
- $37.70
- Risk / Reward Ratio
- 0.852
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.
LINE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LINE. 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% | -$270.00 |
| $8.56 | -77.9% | -$270.00 |
| $17.11 | -55.8% | -$270.00 |
| $25.66 | -33.7% | -$270.00 |
| $34.21 | -11.5% | -$270.00 |
| $42.76 | +10.6% | +$230.00 |
| $51.30 | +32.7% | +$230.00 |
| $59.85 | +54.8% | +$230.00 |
| $68.40 | +76.9% | +$230.00 |
| $76.95 | +99.0% | +$230.00 |
When traders use butterfly on LINE
Butterflies on LINE are pinning bets - traders use them when they expect LINE 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.
LINE thesis for this butterfly
The market-implied 1-standard-deviation range for LINE extends from approximately $33.90 on the downside to $43.44 on the upside. A LINE long call butterfly is a pinning play: it pays maximum at the middle strike if LINE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LINE IV rank near 10.90% 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 LINE at 43.00%. As a Real Estate name, LINE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LINE-specific events.
LINE 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. LINE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LINE alongside the broader basket even when LINE-specific fundamentals are unchanged. Always rebuild the position from current LINE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LINE?
- A butterfly on LINE is the butterfly strategy applied to LINE (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 LINE stock trading near $38.67, the strikes shown on this page are snapped to the nearest listed LINE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LINE 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 LINE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.00%), the computed maximum profit is $230.00 per contract and the computed maximum loss is -$270.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LINE butterfly?
- The breakeven for the LINE butterfly priced on this page is roughly $37.70 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 LINE market-implied 1-standard-deviation expected move is approximately 12.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LINE?
- Butterflies on LINE are pinning bets - traders use them when they expect LINE 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 LINE implied volatility affect this butterfly?
- LINE ATM IV is at 43.00% with IV rank near 10.90%, 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.