How are LRCX 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 LRCX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.70%), the computed maximum profit is $1,490.88 per contract and the computed maximum loss is -$500.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LRCX butterfly?

The breakeven for the LRCX butterfly priced on this page is roughly $345.00 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 LRCX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LRCX implied volatility affect this butterfly?

LRCX ATM IV is at 59.70% with IV rank near 40.64%, 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.

LRCX Butterfly Strategy

LRCX (Lam Research Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Lam Research Corporation is a prominent supplier of equipment vital for semiconductor processing, encompassing its design, production, sales, repair, and ongoing maintenance. These sophisticated systems are fundamental for the creation of integrated circuits. The company's extensive product catalog features a variety of deposition technologies. For tungsten metallization, they provide ALTUS systems that deposit conformal films. SABRE products excel in electrochemical deposition, crucial for copper interconnect transitions and enabling copper damascene manufacturing. SOLA utilizes ultraviolet thermal processing for film treatments, while VECTOR delivers plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition (ALD) solutions.

LRCX (Lam Research Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $407.82B, a trailing P/E of 56.33, a beta of 1.87 versus the broader market, a 52-week range of 94.11-438.5, average daily share volume of 11.0M, a public-listing history dating back to 1984, approximately 19K full-time employees. These structural characteristics shape how LRCX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.87 indicates LRCX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 56.33 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. LRCX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on LRCX?

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.

LRCX snapshot

As of August 14, 2026, spot at $331.57, ATM IV 59.70%, IV rank 40.64%, expected move 17.12%. The butterfly on LRCX 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 LRCX specifically: LRCX IV at 59.70% 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 17.12% (roughly $56.75 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 LRCX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LRCX should anchor to the underlying notional of $331.57 per share and to the trader's directional view on LRCX stock.

LRCX butterfly setup

The LRCX 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 LRCX at $331.57 on that close, the first option leg uses a $315.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LRCX 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 LRCX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$315.00	$31.55
Sell 2	Call	$330.00	$23.23
Buy 1	Call	$350.00	$14.90

LRCX butterfly risk and reward

Net Premium / Debit: $0.00
Max Profit (per contract): $1,490.88
Max Loss (per contract): -$500.00
Breakeven(s): $345.00
Risk / Reward Ratio: 2.982

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.

LRCX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on LRCX. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	$0.00
$73.32	-77.9%	$0.00
$146.63	-55.8%	$0.00
$219.94	-33.7%	$0.00
$293.25	-11.6%	$0.00
$366.56	+10.6%	-$500.00
$439.88	+32.7%	-$500.00
$513.19	+54.8%	-$500.00
$586.50	+76.9%	-$500.00
$659.81	+99.0%	-$500.00

When traders use butterfly on LRCX

Butterflies on LRCX are pinning bets - traders use them when they expect LRCX 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.

LRCX thesis for this butterfly

The market-implied 1-standard-deviation range for LRCX extends from approximately $274.82 on the downside to $388.32 on the upside. A LRCX long call butterfly is a pinning play: it pays maximum at the middle strike if LRCX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LRCX IV rank near 40.64% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on LRCX should anchor more to the directional view and the expected-move geometry. As a Technology name, LRCX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LRCX-specific events.

LRCX 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. LRCX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LRCX alongside the broader basket even when LRCX-specific fundamentals are unchanged. Always rebuild the position from current LRCX chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on LRCX?: A butterfly on LRCX is the butterfly strategy applied to LRCX (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 LRCX stock at $331.57 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LRCX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are LRCX 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 LRCX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.70%), the computed maximum profit is $1,490.88 per contract and the computed maximum loss is -$500.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LRCX butterfly?: The breakeven for the LRCX butterfly priced on this page is roughly $345.00 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 LRCX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on LRCX?: Butterflies on LRCX are pinning bets - traders use them when they expect LRCX 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 LRCX implied volatility affect this butterfly?: LRCX ATM IV is at 59.70% with IV rank near 40.64%, 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.