LCNB Straddle Strategy
LCNB (LCNB Corp.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as certificates of deposit. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It also offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services.
LCNB (LCNB Corp.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $225.4M, a trailing P/E of 9.73, a beta of 0.58 versus the broader market, a 52-week range of 13.75-17.89, average daily share volume of 27K, a public-listing history dating back to 1999, approximately 346 full-time employees. These structural characteristics shape how LCNB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates LCNB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 9.73 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. LCNB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on LCNB?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current LCNB snapshot
As of May 15, 2026, spot at $15.72, ATM IV 76.00%, IV rank 36.50%, expected move 21.79%. The straddle on LCNB 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 straddle structure on LCNB specifically: LCNB IV at 76.00% 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 21.79% (roughly $3.43 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 LCNB expiries trade a higher absolute premium for lower per-day decay. Position sizing on LCNB should anchor to the underlying notional of $15.72 per share and to the trader's directional view on LCNB stock.
LCNB straddle setup
The LCNB straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LCNB near $15.72, the first option leg uses a $15.72 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LCNB 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 LCNB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.72 | N/A |
| Buy 1 | Put | $15.72 | N/A |
LCNB straddle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
LCNB straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on LCNB. 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.
When traders use straddle on LCNB
Straddles on LCNB are pure-volatility plays that profit from large moves in either direction; traders typically buy LCNB straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
LCNB thesis for this straddle
The market-implied 1-standard-deviation range for LCNB extends from approximately $12.29 on the downside to $19.15 on the upside. A LCNB long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current LCNB IV rank near 36.50% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on LCNB should anchor more to the directional view and the expected-move geometry. As a Financial Services name, LCNB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LCNB-specific events.
LCNB straddle positions are structurally neutral / high-volatility (long premium); 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. LCNB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LCNB alongside the broader basket even when LCNB-specific fundamentals are unchanged. Always rebuild the position from current LCNB chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on LCNB?
- A straddle on LCNB is the straddle strategy applied to LCNB (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With LCNB stock trading near $15.72, the strikes shown on this page are snapped to the nearest listed LCNB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LCNB straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the LCNB straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 76.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LCNB straddle?
- The breakeven for the LCNB straddle priced on this page is no defined breakeven on the modeled curve 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 LCNB market-implied 1-standard-deviation expected move is approximately 21.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on LCNB?
- Straddles on LCNB are pure-volatility plays that profit from large moves in either direction; traders typically buy LCNB straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current LCNB implied volatility affect this straddle?
- LCNB ATM IV is at 76.00% with IV rank near 36.50%, 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.