LSCC Butterfly Strategy
LSCC (Lattice Semiconductor Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Headquartered in Hillsboro, Oregon, and established in 1983, Lattice Semiconductor Corporation, through its various entities, specializes in the global design and distribution of semiconductor solutions across Asia, Europe, and the Americas. The company's primary offerings include a diverse lineup of Field Programmable Gate Arrays (FPGAs), structured into distinct product families such as Certus-NX and ECP, Mach, iCE40, and CrossLink. Additionally, Lattice manufactures application-specific standard products (ASSPs) dedicated to video connectivity. Beyond physical products, the firm actively monetizes its technological advancements by licensing its intellectual property portfolio through standard IP and core licensing, patent monetization initiatives, and specialized IP services. Lattice distributes its products directly to end-users and indirectly via a robust network of independent manufacturers' representatives and distributors. Its primary clientele consists of original equipment manufacturers (OEMs) operating across critical sectors like communications and computing, consumer electronics, and the industrial and automotive industries.
LSCC (Lattice Semiconductor Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $17.71B, a trailing P/E of 487.30, a beta of 1.80 versus the broader market, a 52-week range of 59.37-157.01, average daily share volume of 2.1M, a public-listing history dating back to 1989, approximately 1K full-time employees. These structural characteristics shape how LSCC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.80 indicates LSCC 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 487.30 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.
What is a butterfly on LSCC?
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.
LSCC snapshot
As of August 14, 2026, spot at $129.99, ATM IV 63.40%, IV rank 23.56%, expected move 18.18%. The butterfly on LSCC 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 35-day expiry.
Why this butterfly structure on LSCC specifically: LSCC IV at 63.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a LSCC butterfly, with a market-implied 1-standard-deviation move of approximately 18.18% (roughly $23.63 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 LSCC expiries trade a higher absolute premium for lower per-day decay. Position sizing on LSCC should anchor to the underlying notional of $129.99 per share and to the trader's directional view on LSCC stock.
LSCC butterfly setup
The LSCC 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 LSCC at $129.99 on that close, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LSCC 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 LSCC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $125.00 | $13.35 |
| Sell 2 | Call | $130.00 | $10.50 |
| Buy 1 | Call | $135.00 | $8.20 |
LSCC butterfly risk and reward
- Net Premium / Debit
- -$55.00
- Max Profit (per contract)
- $380.18
- Max Loss (per contract)
- -$55.00
- Breakeven(s)
- $125.55, $134.45
- Risk / Reward Ratio
- 6.912
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.
LSCC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LSCC. 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 | -100.0% | -$55.00 |
| $28.75 | -77.9% | -$55.00 |
| $57.49 | -55.8% | -$55.00 |
| $86.23 | -33.7% | -$55.00 |
| $114.97 | -11.6% | -$55.00 |
| $143.71 | +10.6% | -$55.00 |
| $172.45 | +32.7% | -$55.00 |
| $201.19 | +54.8% | -$55.00 |
| $229.93 | +76.9% | -$55.00 |
| $258.67 | +99.0% | -$55.00 |
When traders use butterfly on LSCC
Butterflies on LSCC are pinning bets - traders use them when they expect LSCC 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.
LSCC thesis for this butterfly
The market-implied 1-standard-deviation range for LSCC extends from approximately $106.36 on the downside to $153.62 on the upside. A LSCC long call butterfly is a pinning play: it pays maximum at the middle strike if LSCC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LSCC IV rank near 23.56% 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 LSCC at 63.40%. As a Technology name, LSCC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LSCC-specific events.
LSCC 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. LSCC positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LSCC alongside the broader basket even when LSCC-specific fundamentals are unchanged. Always rebuild the position from current LSCC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LSCC?
- A butterfly on LSCC is the butterfly strategy applied to LSCC (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 LSCC stock at $129.99 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LSCC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LSCC 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 LSCC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 63.40%), the computed maximum profit is $380.18 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LSCC butterfly?
- The breakeven for the LSCC butterfly priced on this page is roughly $125.55 and $134.45 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 LSCC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LSCC?
- Butterflies on LSCC are pinning bets - traders use them when they expect LSCC 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 LSCC implied volatility affect this butterfly?
- LSCC ATM IV is at 63.40% with IV rank near 23.56%, 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.