LAMR Strangle 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 strangle on LAMR?
A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.
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 strangle 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 strangle 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 strangle setup
The LAMR strangle 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 $155.00 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 | $155.00 | $1.60 |
| Buy 1 | Put | $140.00 | $2.43 |
LAMR strangle risk and reward
- Net Premium / Debit
- -$402.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$402.50
- Breakeven(s)
- $135.98, $159.03
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.
LAMR strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle 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% | +$13,596.50 |
| $32.20 | -77.9% | +$10,377.76 |
| $64.38 | -55.8% | +$7,159.01 |
| $96.57 | -33.7% | +$3,940.27 |
| $128.76 | -11.6% | +$721.53 |
| $160.95 | +10.6% | +$192.22 |
| $193.13 | +32.7% | +$3,410.96 |
| $225.32 | +54.8% | +$6,629.71 |
| $257.51 | +76.9% | +$9,848.45 |
| $289.70 | +99.0% | +$13,067.19 |
When traders use strangle on LAMR
Strangles on LAMR are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the LAMR chain.
LAMR thesis for this strangle
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 strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. Current LAMR IV rank near 36.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle 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 strangle positions are structurally neutral / high-volatility (long premium, OTM); 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 strangle on LAMR?
- A strangle on LAMR is the strangle strategy applied to LAMR (stock). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. 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 strangle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the LAMR strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 25.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$402.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LAMR strangle?
- The breakeven for the LAMR strangle priced on this page is roughly $135.98 and $159.03 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 strangle on LAMR?
- Strangles on LAMR are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the LAMR chain.
- How does current LAMR implied volatility affect this strangle?
- 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.