How are NGL 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 NGL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.50%), the computed maximum profit is $58.46 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NGL butterfly?

The breakeven for the NGL butterfly priced on this page is roughly $15.35 and $16.65 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 NGL market-implied 1-standard-deviation expected move is approximately 15.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NGL implied volatility affect this butterfly?

NGL ATM IV is at 55.50% with IV rank near 40.97%, 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.

NGL Butterfly Strategy

NGL (NGL Energy Partners LP), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

NGL Energy Partners LP is engaged in the midstream energy sector, focusing on the movement, storage, blending, and marketing of critical energy commodities such as crude oil, natural gas liquids (NGLs), refined petroleum products, and renewable fuels. The company also offers extensive water solutions. Its operations are structured into three primary segments: The Water Solutions division specializes in managing water generated during oil and natural gas extraction. This involves the transportation, treatment, recycling, and responsible disposal of produced and flowback water. Additionally, it recovers and markets crude oil, handles the disposal of solids like tank bottoms and drilling fluids, performs truck and frac tank washouts, and supplies water for reuse, recycling, or as brackish non-potable water. The Crude Oil Logistics segment is responsible for purchasing crude oil from producers and marketers, then transporting it to refineries.

NGL (NGL Energy Partners LP) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $1.99B, a beta of 0.58 versus the broader market, a 52-week range of 3.95-18.8, average daily share volume of 290K, a public-listing history dating back to 2011, approximately 607 full-time employees. These structural characteristics shape how NGL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.58 indicates NGL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on NGL?

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 NGL snapshot

As of June 29, 2026, spot at $15.85, ATM IV 55.50%, IV rank 40.97%, expected move 15.91%. The butterfly on NGL 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 18-day expiry.

Why this butterfly structure on NGL specifically: NGL IV at 55.50% 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 15.91% (roughly $2.52 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on NGL should anchor to the underlying notional of $15.85 per share and to the trader's directional view on NGL stock.

NGL butterfly setup

The NGL 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 NGL near $15.85, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NGL chain at a 18-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 NGL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$15.00	$1.25
Sell 2	Call	$16.00	$0.68
Buy 1	Call	$17.00	$0.45

NGL butterfly risk and reward

Net Premium / Debit: -$35.00
Max Profit (per contract): $58.46
Max Loss (per contract): -$35.00
Breakeven(s): $15.35, $16.65
Risk / Reward Ratio: 1.670

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.

NGL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NGL. 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	-99.9%	-$35.00
$3.51	-77.8%	-$35.00
$7.02	-55.7%	-$35.00
$10.52	-33.6%	-$35.00
$14.02	-11.5%	-$35.00
$17.53	+10.6%	-$35.00
$21.03	+32.7%	-$35.00
$24.53	+54.8%	-$35.00
$28.04	+76.9%	-$35.00
$31.54	+99.0%	-$35.00

When traders use butterfly on NGL

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

NGL thesis for this butterfly

The market-implied 1-standard-deviation range for NGL extends from approximately $13.33 on the downside to $18.37 on the upside. A NGL long call butterfly is a pinning play: it pays maximum at the middle strike if NGL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NGL IV rank near 40.97% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NGL should anchor more to the directional view and the expected-move geometry. As a Energy name, NGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NGL-specific events.

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

Frequently asked questions

What is a butterfly on NGL?: A butterfly on NGL is the butterfly strategy applied to NGL (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 NGL stock trading near $15.85, the strikes shown on this page are snapped to the nearest listed NGL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NGL 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 NGL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.50%), the computed maximum profit is $58.46 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NGL butterfly?: The breakeven for the NGL butterfly priced on this page is roughly $15.35 and $16.65 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 NGL market-implied 1-standard-deviation expected move is approximately 15.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NGL?: Butterflies on NGL are pinning bets - traders use them when they expect NGL 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 NGL implied volatility affect this butterfly?: NGL ATM IV is at 55.50% with IV rank near 40.97%, 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.