LTRN Straddle Strategy
LTRN (Lantern Pharma Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Lantern Pharma Inc., a clinical stage biotechnology company, focuses on artificial intelligence, machine learning, and genomic data to streamline the drug development process. Its advanced drug candidate is LP-100, which is in phase II clinical trials to treat metastatic, castration-resistant, and prostate cancer. The company also develops LP-300 as a combination therapy for non or never-smokers with non-small cell lung cancer adenocarcinoma. In addition, its preclinical development drug candidate is LP-184, an alkylating agent that damages DNA in cancer cells that overexpress certain biomarkers or that harbor mutations in DNA repair pathways. Further, the company operates ADC program, an antibody drug conjugate therapeutic approach for cancer treatment. Additionally, the company's artificial intelligence platform RADR uses big data analytics and machine learning for combining molecular data.
LTRN (Lantern Pharma Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $28.4M, a beta of 2.10 versus the broader market, a 52-week range of 1.11-5.744, average daily share volume of 611K, a public-listing history dating back to 2020, approximately 24 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 2.10 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 straddle on LTRN?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current LTRN snapshot
As of May 15, 2026, spot at $3.11, ATM IV 340.80%, IV rank 68.85%, expected move 97.70%. The straddle on LTRN 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 straddle structure on LTRN specifically: LTRN IV at 340.80% 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 97.70% (roughly $3.04 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 LTRN expiries trade a higher absolute premium for lower per-day decay. Position sizing on LTRN should anchor to the underlying notional of $3.11 per share and to the trader's directional view on LTRN stock.
LTRN straddle setup
The LTRN straddle 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 near $3.11, the first option leg uses a $3.11 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 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 LTRN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.11 | N/A |
| Buy 1 | Put | $3.11 | N/A |
LTRN straddle 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
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
LTRN straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle 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 straddle on LTRN
Straddles on LTRN are pure-volatility plays that profit from large moves in either direction; traders typically buy LTRN straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
LTRN thesis for this straddle
The market-implied 1-standard-deviation range for LTRN extends from approximately $0.07 on the downside to $6.15 on the upside. A LTRN long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current LTRN IV rank near 68.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle 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 straddle positions are structurally neutral / high-volatility (long premium); 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 straddle on LTRN?
- A straddle on LTRN is the straddle strategy applied to LTRN (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With LTRN stock trading near $3.11, the strikes shown on this page are snapped to the nearest listed LTRN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LTRN straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the LTRN straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 340.80%), 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 straddle?
- The breakeven for the LTRN straddle 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 LTRN market-implied 1-standard-deviation expected move is approximately 97.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on LTRN?
- Straddles on LTRN are pure-volatility plays that profit from large moves in either direction; traders typically buy LTRN straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current LTRN implied volatility affect this straddle?
- LTRN ATM IV is at 340.80% with IV rank near 68.85%, 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.