How are STNG 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 STNG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.00%), the computed maximum profit is $213.55 per contract and the computed maximum loss is -$252.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STNG butterfly?

The breakeven for the STNG butterfly priced on this page is roughly $67.53 and $72.88 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 STNG market-implied 1-standard-deviation expected move is approximately 11.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STNG implied volatility affect this butterfly?

STNG ATM IV is at 40.00% with IV rank near 32.22%, 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.

STNG Butterfly Strategy

STNG (Scorpio Tankers Inc.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oil and refined petroleum products worldwide. As of March 19, 2026, its fleet consisted of 90 wholly owned tankers, including 34 LR2, 42MR, and 14 Handymax. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.

STNG (Scorpio Tankers Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $3.61B, a trailing P/E of 6.82, a beta of -0.27 versus the broader market, a 52-week range of 38.83-87.39, average daily share volume of 1.0M, a public-listing history dating back to 2010, approximately 24 full-time employees. These structural characteristics shape how STNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.27 indicates STNG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 6.82 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. STNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on STNG?

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 STNG snapshot

As of June 30, 2026, spot at $69.29, ATM IV 40.00%, IV rank 32.22%, expected move 11.47%. The butterfly on STNG 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 17-day expiry.

Why this butterfly structure on STNG specifically: STNG IV at 40.00% 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 11.47% (roughly $7.95 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on STNG should anchor to the underlying notional of $69.29 per share and to the trader's directional view on STNG stock.

STNG butterfly setup

The STNG 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 STNG near $69.29, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STNG chain at a 17-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 STNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$65.00	$5.35
Sell 2	Call	$70.00	$2.00
Buy 1	Call	$72.50	$1.18

STNG butterfly risk and reward

Net Premium / Debit: -$252.50
Max Profit (per contract): $213.55
Max Loss (per contract): -$252.50
Breakeven(s): $67.53, $72.88
Risk / Reward Ratio: 0.846

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.

STNG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on STNG. 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%	-$252.50
$15.33	-77.9%	-$252.50
$30.65	-55.8%	-$252.50
$45.97	-33.7%	-$252.50
$61.29	-11.5%	-$252.50
$76.61	+10.6%	-$2.50
$91.93	+32.7%	-$2.50
$107.25	+54.8%	-$2.50
$122.56	+76.9%	-$2.50
$137.88	+99.0%	-$2.50

When traders use butterfly on STNG

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

STNG thesis for this butterfly

The market-implied 1-standard-deviation range for STNG extends from approximately $61.34 on the downside to $77.24 on the upside. A STNG long call butterfly is a pinning play: it pays maximum at the middle strike if STNG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current STNG IV rank near 32.22% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on STNG should anchor more to the directional view and the expected-move geometry. As a Industrials name, STNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STNG-specific events.

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

Frequently asked questions

What is a butterfly on STNG?: A butterfly on STNG is the butterfly strategy applied to STNG (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 STNG stock trading near $69.29, the strikes shown on this page are snapped to the nearest listed STNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are STNG 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 STNG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.00%), the computed maximum profit is $213.55 per contract and the computed maximum loss is -$252.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STNG butterfly?: The breakeven for the STNG butterfly priced on this page is roughly $67.53 and $72.88 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 STNG market-implied 1-standard-deviation expected move is approximately 11.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on STNG?: Butterflies on STNG are pinning bets - traders use them when they expect STNG 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 STNG implied volatility affect this butterfly?: STNG ATM IV is at 40.00% with IV rank near 32.22%, 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.