LAZR Butterfly Strategy
LAZR (Tema Photonics & Optical ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Tema Photonics & Optical ETF (the Fund) seeks to provide long-term growth.
LAZR (Tema Photonics & Optical ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $952,400, a beta of 0.00 versus the broader market, a 52-week range of 32.55-50.79, average daily share volume of 145K, a public-listing history dating back to 2026. These structural characteristics shape how LAZR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates LAZR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on LAZR?
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.
LAZR snapshot
As of August 14, 2026, spot at $47.25, ATM IV 73.70%, IV rank 16.91%, expected move 21.13%. The butterfly on LAZR below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on LAZR specifically: LAZR IV at 73.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a LAZR butterfly, with a market-implied 1-standard-deviation move of approximately 21.13% (roughly $9.98 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LAZR expiries trade a higher absolute premium for lower per-day decay. Position sizing on LAZR should anchor to the underlying notional of $47.25 per share and to the trader's directional view on LAZR stock.
LAZR butterfly setup
The LAZR butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LAZR at $47.25 on that close, the first option leg uses a $45.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LAZR chain at a 35-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 LAZR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $45.00 | $5.50 |
| Sell 2 | Call | $47.00 | $4.40 |
| Buy 1 | Call | $50.00 | $3.28 |
LAZR butterfly risk and reward
- Net Premium / Debit
- +$2.50
- Max Profit (per contract)
- $200.74
- Max Loss (per contract)
- -$97.50
- Breakeven(s)
- $49.03
- Risk / Reward Ratio
- 2.059
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.
LAZR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LAZR. 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% | +$2.50 |
| $10.46 | -77.9% | +$2.50 |
| $20.90 | -55.8% | +$2.50 |
| $31.35 | -33.7% | +$2.50 |
| $41.79 | -11.5% | +$2.50 |
| $52.24 | +10.6% | -$97.50 |
| $62.69 | +32.7% | -$97.50 |
| $73.13 | +54.8% | -$97.50 |
| $83.58 | +76.9% | -$97.50 |
| $94.03 | +99.0% | -$97.50 |
When traders use butterfly on LAZR
Butterflies on LAZR are pinning bets - traders use them when they expect LAZR 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.
LAZR thesis for this butterfly
The market-implied 1-standard-deviation range for LAZR extends from approximately $37.27 on the downside to $57.23 on the upside. A LAZR long call butterfly is a pinning play: it pays maximum at the middle strike if LAZR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LAZR IV rank near 16.91% 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 LAZR at 73.70%. As a Financial Services name, LAZR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LAZR-specific events.
LAZR 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. LAZR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LAZR alongside the broader basket even when LAZR-specific fundamentals are unchanged. Always rebuild the position from current LAZR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LAZR?
- A butterfly on LAZR is the butterfly strategy applied to LAZR (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 LAZR stock at $47.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LAZR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LAZR 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 LAZR butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 73.70%), the computed maximum profit is $200.74 per contract and the computed maximum loss is -$97.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LAZR butterfly?
- The breakeven for the LAZR butterfly priced on this page is roughly $49.03 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The LAZR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LAZR?
- Butterflies on LAZR are pinning bets - traders use them when they expect LAZR 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 LAZR implied volatility affect this butterfly?
- LAZR ATM IV is at 73.70% with IV rank near 16.91%, 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.