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Strong VRP edge and elevated IVR support selling premium; flat Term Structure.
Lumentum (LITE) operates in the Information Technology sector and has actively traded listed options. LITE scores 78/100 for premium selling conditions. See Premium Selling for trade setup.
LITE Edge Score: 78/100 — one of today's strongest setups for premium selling.
Consider Short Strangle at 29d to earnings.
Build Trade →Strong setup detected. Review the Short Strangle and build your trade.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Edge Score = weighted composite of VRP, IV Rank, RV Regime, Earnings Proximity, Term Structure, and Liquidity. Ranges: Defensive (0–39), Selective (40–64), Favorable (65–100).IV Rank, VRP, RV Ratio, days to earnings, backwardation/contango, bid-ask spread quality
ORATS institutional options data, updated daily after market close (~6:00 PM ET)
The score reflects current market conditions and changes daily. A high score indicates favorable conditions for premium selling, not guaranteed profit. Always verify execution quality with your broker.
Current conditions on LITE point toward range-bound strategies like iron condor (conservative). Normal volatility regime (ratio 0.94). Range-bound strategies with conservative sizing. Iron Condor (Conservative) benefits from time decay while defining maximum risk on both sides — a structure that suits LITE's current volatility profile where directional edge is limited but overall conditions are acceptable for premium collection.
VolRadar tracks LITE daily as part of the S&P 500 universe, providing Yang-Zhang (OHLC-based) realized volatility across 10, 20, and 60-day windows, RV ratio analysis, expected move calculations, and premium selling condition assessments. Note: RV values on this page use the Yang-Zhang estimator (captures overnight gaps); VRP and RV Ratio use ORATS close-to-close RV to match the IV data source. Data is updated daily after market close (~6:00 PM ET). All analysis is for educational purposes only and does not constitute financial advice. Options trading involves significant risk of loss.
More about LITE
Lumentum currently shows strong premium selling conditions with an RV Ratio of 0.94. Realized volatility is below implied volatility, suggesting options may be overpriced relative to actual movement. Explore the Premium Selling page for detailed strategy recommendations and the Strategy Builder to model specific trades.
Lumentum's IV Rank is 80%, meaning current IV exceeds most of its 12-month range. Elevated IV creates richer premiums for sellers and may indicate upcoming events or heightened uncertainty. Explore the IV Analysis page for peer comparisons and historical context.
VolRadar tracks Lumentum across 10 analysis dimensions updated daily after market close. The premium selling signal combines VRP edge, volatility regime, IV Rank, earnings proximity, and market-wide conditions into a single actionable verdict. Each sub-page goes deeper: VRP Analysis for the implied-vs-realized spread, IV Analysis for peer comparisons, Expected Move for strike placement, Earnings Crush for event history, and the Strategy Builder for modeling specific trades.
Lumentum currently shows a strong premium selling signal with an RV Ratio of 0.94. Realized volatility is below implied volatility, suggesting options may be overpriced relative to actual price movement.
More analysis sections planned — Dark Pool Flow, Unusual Activity, Sector Comparison, and more.
Earnings impact: Raw VRP (+6.7pp) includes an IV premium from upcoming earnings (29d). Excluding this premium, VRP is +0.6pp. The 6pp gap is earnings-driven — not a structural edge.
Strong — Favorable (earnings-driven edge)
Volatility smile & skew shifts
IV curve across expirations
Strategy
P&L calculator for any strategy
Ranked strategies & selling conditions
Best CC strikes, premiums & scores
CSP → assignment → CC calculator
Early assignment probability & alerts
Flow & Events
Support & resistance from OI
IV crush & historical earnings
Price range & strike placement
Historical expected move hit rates
Lumentum's volatility is measured using two key metrics. The RV Ratio compares realized volatility (ORATS HV 20d) to implied volatility (IV 30d). When the RV Ratio drops below 0.85, realized movement is well below what options are pricing — the sweet spot for premium sellers. VRP (Volatility Risk Premium) measures the gap between IV and HV in percentage points — positive VRP means options are overpriced relative to actual movement. Current RV Ratio: 0.94.
Lumentum's snapshot: IV Rank 80% (elevated premiums), VRP +6.7pp (options overpriced), RV Ratio 0.94 (normal volatility). These three metrics work together — IV Rank shows historical context, VRP shows current overpricing, and RV Ratio shows the volatility trend. See the IV Analysis page for peer comparisons and deeper breakdown.
VolRadar provides 10 analysis pages for Lumentum: Overview (this page), Premium Selling (signal and strategy verdict), VRP Analysis (volatility risk premium history), Expected Move (range and probabilities), IV Analysis (implied volatility breakdown and peer comparison), Earnings Crush (historical post-earnings IV patterns), Options Strategy Builder (18 presets + custom calculator), Covered Call Analysis (ranked by CC Score), Wheel Strategy (CSP calculator and viability), and Support & Resistance Walls (options-derived price levels).
Every options trade carries risk: undefined-risk strategies (naked puts/calls) expose you to large losses on gap moves, while defined-risk strategies cap losses but reduce premium. For Lumentum, current conditions favor premium sellers, but all options trades carry significant risk — always size positions so no single trade risks more than 1-3% of your account. Use the Strategy Builder to model worst-case scenarios before entering.
An IV Rank of 80% means Lumentum's current implied volatility is higher than most readings over the past year. Elevated IV can indicate the market expects larger moves ahead, creating higher premiums for sellers but also higher risk if the move materializes.
Lumentum's Volatility Risk Premium (VRP) is +6.7pp, meaning implied volatility exceeds realized volatility by that amount. A positive VRP indicates options are overpriced relative to actual stock movement — this is the statistical edge premium sellers seek.