LRNZ Butterfly Strategy
LRNZ (TrueShares Technology, AI and Deep Learning ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under normal circumstances, at least 80% of its net assets (plus any borrowings made for investment purposes) in the common stock of technology, artificial intelligence and deep learning companies. It may also invest in small and medium capitalized companies, as the Adviser believes these relatively smaller companies may provide above average capital appreciation and dividend yield. The fund is non-diversified.
LRNZ (TrueShares Technology, AI and Deep Learning ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $31.6M, a beta of 1.44 versus the broader market, a 52-week range of 37.89-52.879, average daily share volume of 4K, a public-listing history dating back to 2020. These structural characteristics shape how LRNZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.44 indicates LRNZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on LRNZ?
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 LRNZ snapshot
As of May 15, 2026, spot at $50.74, ATM IV 37.50%, IV rank 30.29%, expected move 10.75%. The butterfly on LRNZ 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 LRNZ specifically: LRNZ IV at 37.50% 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 10.75% (roughly $5.46 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 LRNZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on LRNZ should anchor to the underlying notional of $50.74 per share and to the trader's directional view on LRNZ etf.
LRNZ butterfly setup
The LRNZ 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 LRNZ near $50.74, the first option leg uses a $48.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LRNZ 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 LRNZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $48.00 | $3.80 |
| Sell 2 | Call | $51.00 | $2.30 |
| Buy 1 | Call | $53.00 | $1.48 |
LRNZ butterfly risk and reward
- Net Premium / Debit
- -$68.00
- Max Profit (per contract)
- $231.99
- Max Loss (per contract)
- -$68.00
- Breakeven(s)
- $48.68
- Risk / Reward Ratio
- 3.412
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.
LRNZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LRNZ. 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% | -$68.00 |
| $11.23 | -77.9% | -$68.00 |
| $22.45 | -55.8% | -$68.00 |
| $33.66 | -33.7% | -$68.00 |
| $44.88 | -11.5% | -$68.00 |
| $56.10 | +10.6% | +$32.00 |
| $67.32 | +32.7% | +$32.00 |
| $78.53 | +54.8% | +$32.00 |
| $89.75 | +76.9% | +$32.00 |
| $100.97 | +99.0% | +$32.00 |
When traders use butterfly on LRNZ
Butterflies on LRNZ are pinning bets - traders use them when they expect LRNZ 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.
LRNZ thesis for this butterfly
The market-implied 1-standard-deviation range for LRNZ extends from approximately $45.28 on the downside to $56.20 on the upside. A LRNZ long call butterfly is a pinning play: it pays maximum at the middle strike if LRNZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LRNZ IV rank near 30.29% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on LRNZ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, LRNZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LRNZ-specific events.
LRNZ 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. LRNZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LRNZ alongside the broader basket even when LRNZ-specific fundamentals are unchanged. Always rebuild the position from current LRNZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LRNZ?
- A butterfly on LRNZ is the butterfly strategy applied to LRNZ (etf). 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 LRNZ etf trading near $50.74, the strikes shown on this page are snapped to the nearest listed LRNZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LRNZ 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 LRNZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.50%), the computed maximum profit is $231.99 per contract and the computed maximum loss is -$68.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LRNZ butterfly?
- The breakeven for the LRNZ butterfly priced on this page is roughly $48.68 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 LRNZ market-implied 1-standard-deviation expected move is approximately 10.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LRNZ?
- Butterflies on LRNZ are pinning bets - traders use them when they expect LRNZ 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 LRNZ implied volatility affect this butterfly?
- LRNZ ATM IV is at 37.50% with IV rank near 30.29%, 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.