LCID Butterfly Strategy
LCID (Lucid Group, Inc.), in the Consumer Cyclical sector, (Auto - Manufacturers industry), listed on NASDAQ.
Operating at the intersection of technology and the automotive industry, Lucid Group, Inc. specializes in the development of electric vehicle (EV) technologies. The company is responsible for the complete cycle of designing, engineering, and manufacturing electric vehicles, including their vital powertrain and battery systems. By the end of 2021, Lucid had expanded its physical presence to twenty retail studios across the United States. The company was founded in 2007 and is headquartered in Newark, California.
LCID (Lucid Group, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Manufacturers, with a market capitalization of approximately $2.08B, a beta of 0.86 versus the broader market, a 52-week range of 2.37-25.23, average daily share volume of 18.9M, a public-listing history dating back to 2020, approximately 9K full-time employees. These structural characteristics shape how LCID stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places LCID roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on LCID?
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.
LCID snapshot
As of August 14, 2026, spot at $6.24, ATM IV 75.47%, IV rank 24.57%, expected move 21.64%. The butterfly on LCID 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 28-day expiry.
Why this butterfly structure on LCID specifically: LCID IV at 75.47% is on the cheap side of its 1-year range, which favors premium-buying structures like a LCID butterfly, with a market-implied 1-standard-deviation move of approximately 21.64% (roughly $1.35 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LCID expiries trade a higher absolute premium for lower per-day decay. Position sizing on LCID should anchor to the underlying notional of $6.24 per share and to the trader's directional view on LCID stock.
LCID butterfly setup
The LCID 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 LCID at $6.24 on that close, the first option leg uses a $6.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LCID chain at a 28-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 LCID shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.00 | $0.54 |
| Sell 2 | Call | $6.00 | $0.54 |
| Buy 1 | Call | $6.50 | $0.35 |
LCID butterfly risk and reward
- Net Premium / Debit
- +$18.50
- Max Profit (per contract)
- $18.50
- Max Loss (per contract)
- -$31.50
- Breakeven(s)
- $6.19
- Risk / Reward Ratio
- 0.587
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.
LCID butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LCID. 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 | -99.8% | +$18.50 |
| $1.39 | -77.7% | +$18.50 |
| $2.77 | -55.7% | +$18.50 |
| $4.15 | -33.6% | +$18.50 |
| $5.52 | -11.5% | +$18.50 |
| $6.90 | +10.6% | -$31.50 |
| $8.28 | +32.7% | -$31.50 |
| $9.66 | +54.8% | -$31.50 |
| $11.04 | +76.9% | -$31.50 |
| $12.42 | +99.0% | -$31.50 |
When traders use butterfly on LCID
Butterflies on LCID are pinning bets - traders use them when they expect LCID 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.
LCID thesis for this butterfly
The market-implied 1-standard-deviation range for LCID extends from approximately $4.89 on the downside to $7.59 on the upside. A LCID long call butterfly is a pinning play: it pays maximum at the middle strike if LCID settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LCID IV rank near 24.57% 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 LCID at 75.47%. As a Consumer Cyclical name, LCID options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LCID-specific events.
LCID 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. LCID positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LCID alongside the broader basket even when LCID-specific fundamentals are unchanged. Always rebuild the position from current LCID chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LCID?
- A butterfly on LCID is the butterfly strategy applied to LCID (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 LCID stock at $6.24 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LCID chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LCID 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 LCID butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 75.47%), the computed maximum profit is $18.50 per contract and the computed maximum loss is -$31.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LCID butterfly?
- The breakeven for the LCID butterfly priced on this page is roughly $6.19 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 LCID market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LCID?
- Butterflies on LCID are pinning bets - traders use them when they expect LCID 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 LCID implied volatility affect this butterfly?
- LCID ATM IV is at 75.47% with IV rank near 24.57%, 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.