LAMR Butterfly Strategy
LAMR (Lamar Advertising Company), in the Real Estate sector, (REIT - Specialty industry), listed on NASDAQ.
Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 352,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with approximately 3,800 displays.
LAMR (Lamar Advertising Company) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $14.88B, a trailing P/E of 27.04, a beta of 1.21 versus the broader market, a 52-week range of 113.05-158.69, average daily share volume of 622K, a public-listing history dating back to 1996, approximately 4K full-time employees. These structural characteristics shape how LAMR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.21 places LAMR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LAMR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on LAMR?
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 LAMR snapshot
As of May 13, 2026, spot at $145.58, ATM IV 25.10%, IV rank 36.47%, expected move 7.20%. The butterfly on LAMR 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 LAMR specifically: LAMR IV at 25.10% 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 7.20% (roughly $10.48 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 LAMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on LAMR should anchor to the underlying notional of $145.58 per share and to the trader's directional view on LAMR stock.
LAMR butterfly setup
The LAMR 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 LAMR near $145.58, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LAMR 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 LAMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $140.00 | $7.50 |
| Sell 2 | Call | $145.00 | $4.70 |
| Buy 1 | Call | $155.00 | $1.60 |
LAMR butterfly risk and reward
- Net Premium / Debit
- +$30.00
- Max Profit (per contract)
- $515.35
- Max Loss (per contract)
- -$470.00
- Breakeven(s)
- $150.30
- Risk / Reward Ratio
- 1.096
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.
LAMR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LAMR. 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% | +$30.00 |
| $32.20 | -77.9% | +$30.00 |
| $64.38 | -55.8% | +$30.00 |
| $96.57 | -33.7% | +$30.00 |
| $128.76 | -11.6% | +$30.00 |
| $160.95 | +10.6% | -$470.00 |
| $193.13 | +32.7% | -$470.00 |
| $225.32 | +54.8% | -$470.00 |
| $257.51 | +76.9% | -$470.00 |
| $289.70 | +99.0% | -$470.00 |
When traders use butterfly on LAMR
Butterflies on LAMR are pinning bets - traders use them when they expect LAMR 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.
LAMR thesis for this butterfly
The market-implied 1-standard-deviation range for LAMR extends from approximately $135.10 on the downside to $156.06 on the upside. A LAMR long call butterfly is a pinning play: it pays maximum at the middle strike if LAMR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LAMR IV rank near 36.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on LAMR should anchor more to the directional view and the expected-move geometry. As a Real Estate name, LAMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LAMR-specific events.
LAMR 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. LAMR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LAMR alongside the broader basket even when LAMR-specific fundamentals are unchanged. Always rebuild the position from current LAMR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LAMR?
- A butterfly on LAMR is the butterfly strategy applied to LAMR (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 LAMR stock trading near $145.58, the strikes shown on this page are snapped to the nearest listed LAMR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LAMR 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 LAMR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.10%), the computed maximum profit is $515.35 per contract and the computed maximum loss is -$470.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LAMR butterfly?
- The breakeven for the LAMR butterfly priced on this page is roughly $150.30 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 LAMR market-implied 1-standard-deviation expected move is approximately 7.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LAMR?
- Butterflies on LAMR are pinning bets - traders use them when they expect LAMR 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 LAMR implied volatility affect this butterfly?
- LAMR ATM IV is at 25.10% with IV rank near 36.47%, 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.