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 end-of-day chain at a 30-day expiry (ATM IV 64.30%), the computed maximum profit is $395.20 per contract and the computed maximum loss is -$45.00 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 $115.27 and $124.73 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 LSCC market-implied 1-standard-deviation expected move is approximately 18.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LSCC implied volatility affect this butterfly?

LSCC ATM IV is at 64.30% with IV rank near 27.82%, 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.

LSCC Butterfly Strategy

LSCC (Lattice Semiconductor Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Certus-NX and ECP, Mach, iCE40, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to end customers, and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial and automotive end markets.

LSCC (Lattice Semiconductor Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $17.22B, a trailing P/E of 864.77, a beta of 1.75 versus the broader market, a 52-week range of 43.9-130, average daily share volume of 2.0M, 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 1.75 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 864.77 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.

Current LSCC snapshot

As of May 15, 2026, spot at $120.00, ATM IV 64.30%, IV rank 27.82%, expected move 18.43%. The butterfly on LSCC 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 butterfly structure on LSCC specifically: LSCC IV at 64.30% 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 18.43% (roughly $22.12 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 LSCC expiries trade a higher absolute premium for lower per-day decay. Position sizing on LSCC should anchor to the underlying notional of $120.00 per share and to the trader's directional view on LSCC stock.

LSCC butterfly setup

The LSCC 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 LSCC near $120.00, the first option leg uses a $115.00 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 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 LSCC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$115.00	$12.30
Sell 2	Call	$120.00	$9.70
Buy 1	Call	$125.00	$7.55

LSCC butterfly risk and reward

Net Premium / Debit: -$45.00
Max Profit (per contract): $395.20
Max Loss (per contract): -$45.00
Breakeven(s): $115.27, $124.73
Risk / Reward Ratio: 8.782

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%	-$45.00
$26.54	-77.9%	-$45.00
$53.07	-55.8%	-$45.00
$79.60	-33.7%	-$45.00
$106.14	-11.6%	-$45.00
$132.67	+10.6%	-$45.00
$159.20	+32.7%	-$45.00
$185.73	+54.8%	-$45.00
$212.26	+76.9%	-$45.00
$238.79	+99.0%	-$45.00

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 $97.88 on the downside to $142.12 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 27.82% 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 64.30%. 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 trading near $120.00, the strikes shown on this page are snapped to the nearest listed LSCC chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 64.30%), the computed maximum profit is $395.20 per contract and the computed maximum loss is -$45.00 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 $115.27 and $124.73 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 LSCC market-implied 1-standard-deviation expected move is approximately 18.43%; 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 64.30% with IV rank near 27.82%, 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.