LVO Butterfly Strategy
LVO (LiveOne, Inc.), in the Communication Services sector, (Entertainment industry), listed on NASDAQ.
LiveOne, Inc. operates as a digital media and entertainment firm, focusing on the acquisition, dissemination, and commercialization of a wide array of audio and video content. This includes live musical performances, online radio, podcasts, vodcasts, and various music-related streaming programs. The company oversees several key platforms: LiveXLive, its dedicated live music streaming service; PodcastOne, a prominent podcasting platform; and Slacker, a music streaming service that supports both membership subscriptions and advertising. Beyond these, LiveOne creates its own proprietary music-themed content. Its operations also encompass the complete process of managing live music events, from production and editing to curation and broadcasting over the internet and satellite networks. LiveOne supplies digital internet radio and music services directly to online users, and also provides white-label solutions for automotive and mobile original equipment manufacturers.
LVO (LiveOne, Inc.) trades in the Communication Services sector, specifically Entertainment, with a market capitalization of approximately $44.3M, a beta of 1.71 versus the broader market, a 52-week range of 3.6-7.2, average daily share volume of 73K, a public-listing history dating back to 2017, approximately 86 full-time employees. These structural characteristics shape how LVO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.71 indicates LVO 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 LVO?
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.
LVO snapshot
As of August 14, 2026, spot at $4.06, ATM IV 103.30%, IV rank 20.75%, expected move 29.62%. The butterfly on LVO 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 LVO specifically: LVO IV at 103.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a LVO butterfly, with a market-implied 1-standard-deviation move of approximately 29.62% (roughly $1.20 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 LVO expiries trade a higher absolute premium for lower per-day decay. Position sizing on LVO should anchor to the underlying notional of $4.06 per share and to the trader's directional view on LVO stock.
LVO butterfly setup
The LVO 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 LVO at $4.06 on that close, the first option leg uses a $3.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LVO 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 LVO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.86 | N/A |
| Sell 2 | Call | $4.06 | N/A |
| Buy 1 | Call | $4.26 | N/A |
LVO 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.
LVO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LVO. 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 LVO
Butterflies on LVO are pinning bets - traders use them when they expect LVO 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.
LVO thesis for this butterfly
The market-implied 1-standard-deviation range for LVO extends from approximately $2.86 on the downside to $5.26 on the upside. A LVO long call butterfly is a pinning play: it pays maximum at the middle strike if LVO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LVO IV rank near 20.75% 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 LVO at 103.30%. As a Communication Services name, LVO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LVO-specific events.
LVO 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. LVO positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LVO alongside the broader basket even when LVO-specific fundamentals are unchanged. Always rebuild the position from current LVO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LVO?
- A butterfly on LVO is the butterfly strategy applied to LVO (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 LVO stock at $4.06 on the most recent close, the strikes shown on this page are snapped to the nearest listed LVO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LVO 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 LVO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 103.30%), 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 LVO butterfly?
- The breakeven for the LVO 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 LVO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 29.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LVO?
- Butterflies on LVO are pinning bets - traders use them when they expect LVO 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 LVO implied volatility affect this butterfly?
- LVO ATM IV is at 103.30% with IV rank near 20.75%, 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.