LBRDK Butterfly Strategy
LBRDK (Liberty Broadband Corporation), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.
Liberty Broadband Corporation is a telecommunications holding company primarily engaged in providing communication services through its two main divisions: GCI Holdings and Charter. The GCI Holdings segment, operating predominantly in Alaska under the GCI brand, delivers a comprehensive suite of communication solutions. These include wireless, data, video, voice, and managed services, catering to a diverse clientele such as households, commercial enterprises, governmental bodies, and institutions in the education and medical sectors. The Charter segment offers a broad spectrum of services. For consumers, this encompasses subscription television services like Spectrum TV, which provides features such as video on demand, high-definition broadcasts, and digital video recording. It also delivers extensive voice services, including domestic and international calling, complemented by standard telephone features like voicemail, call waiting, caller ID, and call forwarding.
LBRDK (Liberty Broadband Corporation) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $5.22B, a beta of 0.65 versus the broader market, a 52-week range of 26.25-65.725, average daily share volume of 2.0M, a public-listing history dating back to 2014, approximately 74 full-time employees. These structural characteristics shape how LBRDK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates LBRDK 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 LBRDK?
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.
LBRDK snapshot
As of August 14, 2026, spot at $36.41, ATM IV 50.30%, IV rank 5.27%, expected move 14.42%. The butterfly on LBRDK 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 126-day expiry.
Why this butterfly structure on LBRDK specifically: LBRDK IV at 50.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a LBRDK butterfly, with a market-implied 1-standard-deviation move of approximately 14.42% (roughly $5.25 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LBRDK expiries trade a higher absolute premium for lower per-day decay. Position sizing on LBRDK should anchor to the underlying notional of $36.41 per share and to the trader's directional view on LBRDK stock.
LBRDK butterfly setup
The LBRDK 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 LBRDK at $36.41 on that close, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LBRDK chain at a 126-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 LBRDK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $5.90 |
| Sell 2 | Call | $37.50 | $4.75 |
| Buy 1 | Call | $37.50 | $4.75 |
LBRDK butterfly risk and reward
- Net Premium / Debit
- -$115.00
- Max Profit (per contract)
- $135.00
- Max Loss (per contract)
- -$115.00
- Breakeven(s)
- $36.15
- Risk / Reward Ratio
- 1.174
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.
LBRDK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LBRDK. 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% | -$115.00 |
| $8.06 | -77.9% | -$115.00 |
| $16.11 | -55.8% | -$115.00 |
| $24.16 | -33.6% | -$115.00 |
| $32.21 | -11.5% | -$115.00 |
| $40.26 | +10.6% | +$135.00 |
| $48.31 | +32.7% | +$135.00 |
| $56.36 | +54.8% | +$135.00 |
| $64.40 | +76.9% | +$135.00 |
| $72.45 | +99.0% | +$135.00 |
When traders use butterfly on LBRDK
Butterflies on LBRDK are pinning bets - traders use them when they expect LBRDK 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.
LBRDK thesis for this butterfly
The market-implied 1-standard-deviation range for LBRDK extends from approximately $31.16 on the downside to $41.66 on the upside. A LBRDK long call butterfly is a pinning play: it pays maximum at the middle strike if LBRDK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LBRDK IV rank near 5.27% 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 LBRDK at 50.30%. As a Communication Services name, LBRDK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LBRDK-specific events.
LBRDK 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. LBRDK positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LBRDK alongside the broader basket even when LBRDK-specific fundamentals are unchanged. Always rebuild the position from current LBRDK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LBRDK?
- A butterfly on LBRDK is the butterfly strategy applied to LBRDK (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 LBRDK stock at $36.41 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LBRDK chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LBRDK 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 LBRDK butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.30%), the computed maximum profit is $135.00 per contract and the computed maximum loss is -$115.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LBRDK butterfly?
- The breakeven for the LBRDK butterfly priced on this page is roughly $36.15 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 LBRDK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LBRDK?
- Butterflies on LBRDK are pinning bets - traders use them when they expect LBRDK 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 LBRDK implied volatility affect this butterfly?
- LBRDK ATM IV is at 50.30% with IV rank near 5.27%, 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.