LPSN Butterfly Strategy
LPSN (LivePerson, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
LivePerson, Inc., together with its subsidiaries, provides conversational commerce software and Gainshare solutions. It operates in two segments, Business and Consumer. The Business segment enables brands to leverage LiveEngage's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The Consumer segment facilitates online transactions between experts and users seeking information and knowledge through mobile and online messaging. The company offers the Conversational Cloud, an enterprise-class and cloud-based platform, which enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging. It also provides professional services and value-added business consulting services.
LPSN (LivePerson, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $26.2M, a beta of 1.39 versus the broader market, a 52-week range of 2.13-21.6, average daily share volume of 144K, a public-listing history dating back to 2000, approximately 928 full-time employees. These structural characteristics shape how LPSN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.39 indicates LPSN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on LPSN?
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 LPSN snapshot
As of May 14, 2026, spot at $2.19, ATM IV 117.50%, IV rank 39.05%, expected move 33.69%. The butterfly on LPSN 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 LPSN specifically: LPSN IV at 117.50% 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 33.69% (roughly $0.74 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 LPSN expiries trade a higher absolute premium for lower per-day decay. Position sizing on LPSN should anchor to the underlying notional of $2.19 per share and to the trader's directional view on LPSN stock.
LPSN butterfly setup
The LPSN 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 LPSN near $2.19, the first option leg uses a $2.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LPSN 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 LPSN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.08 | N/A |
| Sell 2 | Call | $2.19 | N/A |
| Buy 1 | Call | $2.30 | N/A |
LPSN 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.
LPSN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LPSN. 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 LPSN
Butterflies on LPSN are pinning bets - traders use them when they expect LPSN 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.
LPSN thesis for this butterfly
The market-implied 1-standard-deviation range for LPSN extends from approximately $1.45 on the downside to $2.93 on the upside. A LPSN long call butterfly is a pinning play: it pays maximum at the middle strike if LPSN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LPSN IV rank near 39.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on LPSN should anchor more to the directional view and the expected-move geometry. As a Technology name, LPSN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LPSN-specific events.
LPSN 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. LPSN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LPSN alongside the broader basket even when LPSN-specific fundamentals are unchanged. Always rebuild the position from current LPSN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LPSN?
- A butterfly on LPSN is the butterfly strategy applied to LPSN (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 LPSN stock trading near $2.19, the strikes shown on this page are snapped to the nearest listed LPSN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LPSN 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 LPSN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 117.50%), 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 LPSN butterfly?
- The breakeven for the LPSN 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 LPSN market-implied 1-standard-deviation expected move is approximately 33.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LPSN?
- Butterflies on LPSN are pinning bets - traders use them when they expect LPSN 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 LPSN implied volatility affect this butterfly?
- LPSN ATM IV is at 117.50% with IV rank near 39.05%, 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.