LTRN Butterfly Strategy
LTRN (Lantern Pharma Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Lantern Pharma Inc. is a clinical-stage biotechnology firm dedicated to revolutionizing drug development through the strategic application of artificial intelligence, machine learning, and comprehensive genomic data analysis. Their primary drug candidate, LP-100, is currently undergoing Phase II clinical trials, targeting metastatic, castration-resistant prostate cancer. The company is also advancing LP-300 as a potential combination therapy for non-small cell lung cancer adenocarcinoma, specifically in individuals who are non-smokers or have never smoked. Furthermore, their preclinical pipeline includes LP-184, an alkylating agent engineered to inflict DNA damage upon cancer cells that either overexpress specific biomarkers or exhibit mutations within their DNA repair pathways. Beyond these, Lantern Pharma maintains an antibody-drug conjugate (ADC) program for diverse cancer treatments. Central to their operations is the RADR artificial intelligence platform, which synergizes molecular data through advanced big data analytics and machine learning capabilities.
LTRN (Lantern Pharma Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $33.9M, a beta of 2.34 versus the broader market, a 52-week range of 1.11-4.75, average daily share volume of 215K, a public-listing history dating back to 2020, approximately 16 full-time employees. These structural characteristics shape how LTRN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.34 indicates LTRN 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 LTRN?
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.
LTRN snapshot
As of August 14, 2026, spot at $2.68, ATM IV 188.30%, IV rank 38.62%, expected move 53.98%. The butterfly on LTRN below is built from the 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 LTRN specifically: LTRN IV at 188.30% 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 53.98% (roughly $1.45 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 LTRN expiries trade a higher absolute premium for lower per-day decay. Position sizing on LTRN should anchor to the underlying notional of $2.68 per share and to the trader's directional view on LTRN stock.
LTRN butterfly setup
The LTRN 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 LTRN at $2.68 on that close, the first option leg uses a $2.55 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LTRN 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 LTRN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.55 | N/A |
| Sell 2 | Call | $2.68 | N/A |
| Buy 1 | Call | $2.81 | N/A |
LTRN 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.
LTRN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LTRN. 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 LTRN
Butterflies on LTRN are pinning bets - traders use them when they expect LTRN 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.
LTRN thesis for this butterfly
The market-implied 1-standard-deviation range for LTRN extends from approximately $1.23 on the downside to $4.13 on the upside. A LTRN long call butterfly is a pinning play: it pays maximum at the middle strike if LTRN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LTRN IV rank near 38.62% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on LTRN should anchor more to the directional view and the expected-move geometry. As a Healthcare name, LTRN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LTRN-specific events.
LTRN 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. LTRN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LTRN alongside the broader basket even when LTRN-specific fundamentals are unchanged. Always rebuild the position from current LTRN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LTRN?
- A butterfly on LTRN is the butterfly strategy applied to LTRN (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 LTRN stock at $2.68 on the most recent close, the strikes shown on this page are snapped to the nearest listed LTRN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LTRN 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 LTRN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 188.30%), 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 LTRN butterfly?
- The breakeven for the LTRN butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 LTRN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 53.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LTRN?
- Butterflies on LTRN are pinning bets - traders use them when they expect LTRN 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 LTRN implied volatility affect this butterfly?
- LTRN ATM IV is at 188.30% with IV rank near 38.62%, 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.