OGS Butterfly Strategy
OGS (ONE Gas, Inc.), in the Utilities sector, (Regulated Gas industry), listed on NYSE.
ONE Gas, Inc., together with its subsidiaries, operates as a regulated natural gas distribution utility company in the United States. The company operates through three divisions: Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service. It provides natural gas distribution services to 2.2 million customers in three states. It serves residential, commercial, and transportation customers. As of December 31, 2021, it operated approximately 41,600 miles of distribution mains; and 2,400 miles of transmission pipelines, as well as had 51.4 billion cubic feet of natural gas storage capacity. ONE Gas, Inc. was founded in 1906 and is headquartered in Tulsa, Oklahoma.
OGS (ONE Gas, Inc.) trades in the Utilities sector, specifically Regulated Gas, with a market capitalization of approximately $5.27B, a trailing P/E of 19.31, a beta of 0.71 versus the broader market, a 52-week range of 70.87-90.78, average daily share volume of 547K, a public-listing history dating back to 2014, approximately 4K full-time employees. These structural characteristics shape how OGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places OGS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. OGS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on OGS?
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 OGS snapshot
As of May 15, 2026, spot at $82.65, ATM IV 21.20%, IV rank 2.66%, expected move 6.08%. The butterfly on OGS 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 OGS specifically: OGS IV at 21.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a OGS butterfly, with a market-implied 1-standard-deviation move of approximately 6.08% (roughly $5.02 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 OGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on OGS should anchor to the underlying notional of $82.65 per share and to the trader's directional view on OGS stock.
OGS butterfly setup
The OGS 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 OGS near $82.65, the first option leg uses a $78.52 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OGS 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 OGS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $78.52 | N/A |
| Sell 2 | Call | $82.65 | N/A |
| Buy 1 | Call | $86.78 | N/A |
OGS butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
OGS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OGS. 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.
When traders use butterfly on OGS
Butterflies on OGS are pinning bets - traders use them when they expect OGS 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.
OGS thesis for this butterfly
The market-implied 1-standard-deviation range for OGS extends from approximately $77.63 on the downside to $87.67 on the upside. A OGS long call butterfly is a pinning play: it pays maximum at the middle strike if OGS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OGS IV rank near 2.66% 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 OGS at 21.20%. As a Utilities name, OGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OGS-specific events.
OGS 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. OGS positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OGS alongside the broader basket even when OGS-specific fundamentals are unchanged. Always rebuild the position from current OGS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OGS?
- A butterfly on OGS is the butterfly strategy applied to OGS (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 OGS stock trading near $82.65, the strikes shown on this page are snapped to the nearest listed OGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OGS 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 OGS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OGS butterfly?
- The breakeven for the OGS butterfly priced on this page is no defined breakeven on the modeled curve 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 OGS market-implied 1-standard-deviation expected move is approximately 6.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OGS?
- Butterflies on OGS are pinning bets - traders use them when they expect OGS 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 OGS implied volatility affect this butterfly?
- OGS ATM IV is at 21.20% with IV rank near 2.66%, 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.