LNSR Butterfly Strategy
LNSR (LENSAR, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. Its LENSAR Laser System incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company was incorporated in 2004 and is headquartered in Orlando, Florida.
LNSR (LENSAR, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $69.8M, a trailing P/E of 2.39, a beta of 0.84 versus the broader market, a 52-week range of 5.06-14.31, average daily share volume of 122K, a public-listing history dating back to 2020, approximately 140 full-time employees. These structural characteristics shape how LNSR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.84 places LNSR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 2.39 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on LNSR?
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.
Current LNSR snapshot
As of May 14, 2026, spot at $5.82, ATM IV 55.30%, IV rank 7.49%, expected move 15.85%. The butterfly on LNSR 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 35-day expiry.
Why this butterfly structure on LNSR specifically: LNSR IV at 55.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a LNSR butterfly, with a market-implied 1-standard-deviation move of approximately 15.85% (roughly $0.92 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 LNSR expiries trade a higher absolute premium for lower per-day decay. Position sizing on LNSR should anchor to the underlying notional of $5.82 per share and to the trader's directional view on LNSR stock.
LNSR butterfly setup
The LNSR butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LNSR near $5.82, the first option leg uses a $5.53 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LNSR 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 LNSR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.53 | N/A |
| Sell 2 | Call | $5.82 | N/A |
| Buy 1 | Call | $6.11 | N/A |
LNSR butterfly 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
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.
LNSR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LNSR. 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 butterfly on LNSR
Butterflies on LNSR are pinning bets - traders use them when they expect LNSR 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.
LNSR thesis for this butterfly
The market-implied 1-standard-deviation range for LNSR extends from approximately $4.90 on the downside to $6.74 on the upside. A LNSR long call butterfly is a pinning play: it pays maximum at the middle strike if LNSR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LNSR IV rank near 7.49% 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 LNSR at 55.30%. As a Healthcare name, LNSR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LNSR-specific events.
LNSR 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. LNSR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LNSR alongside the broader basket even when LNSR-specific fundamentals are unchanged. Always rebuild the position from current LNSR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LNSR?
- A butterfly on LNSR is the butterfly strategy applied to LNSR (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 LNSR stock trading near $5.82, the strikes shown on this page are snapped to the nearest listed LNSR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LNSR 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 LNSR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.30%), 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 LNSR butterfly?
- The breakeven for the LNSR butterfly 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 LNSR market-implied 1-standard-deviation expected move is approximately 15.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LNSR?
- Butterflies on LNSR are pinning bets - traders use them when they expect LNSR 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 LNSR implied volatility affect this butterfly?
- LNSR ATM IV is at 55.30% with IV rank near 7.49%, 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.