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Lumentum — Find the best options trade for LITE right now
Lumentum (LITE) operates in the Information Technology sector and has actively traded listed options. Short Strangle ranks #1 — VRP at +6.7pp and IV Rank at 80% support premium-selling setups. Both defined and undefined risk structures score well at this signal level. The builder below scores 3 strategies against current conditions. See IV Analysis for volatility depth.
Each strategy scored against LITE’s current IV, VRP, and risk profile. Top pick: Short Strangle.
| Rank | Strategy | Risk Type | Setup | Why | |
|---|---|---|---|---|---|
| #1 | Short Strangle Credit $5,310·MaxP $4,700·MaxL Unlimited·RoC 19.6% | Undefined Risk | Sell $600.0P / Sell $1200.0C · 2026-05-15 · 40 DTE 40 DTE | ~$47.00 (bid) to $53.10 (mid) | Apply ↓ |
Build and compare options strategies with pre-filled strikes and DTE targets. See estimated profit, max loss, and breakeven points before you trade.
Compare the top-ranked strategies, then adjust strikes to match your risk tolerance.
Ranking factors: Signal match, IV environment suitability, risk/reward ratio, probability of profitIV Rank, VRP, signal strength, strategy-specific Greeks
VolRadar strategy matching engine using ORATS data
Rankings reflect current conditions and change daily. Strategy suitability depends on your risk tolerance, capital, and market outlook. Always model the trade before entering.
Earnings in 29 days. Trades with DTE >29d will span earnings. Consider shorter expirations or defined-risk strategies to limit gap risk.
Live liquidity snapshot not yet available. Rankings and signal confidence do not factor in bid-ask spreads or option volume. Verify liquidity with your broker before trading. Illiquid names may have wider spreads that erode edge.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Based on strong signal conditions, VolRadar ranks Short Strangle as the top strategy for Lumentum. This undefined-risk strategy offers more premium but requires more capital and active position management. ~$47.00 (bid) to $53.10 (mid) For defined risk, consider Short Put.
Lumentum currently shows conditions that favor credit strategies (selling premium) — see the IV Analysis page for the full IV Rank breakdown (80%). Higher implied vol means wider credit spreads, richer iron condor premiums, and better returns on capital for sellers. Both defined and undefined risk benefit. Confirm bid-ask spreads on your target strikes.
In current strong conditions, both defined and undefined risk can work for Lumentum. Undefined risk (short puts, strangles) offers more premium but requires more capital and active management. Defined risk (spreads, iron condors) caps your maximum loss but collects less credit. Choose based on your account size, risk tolerance, and time available for management.
Premiums are model estimates (not live bid/ask) — verify with your broker before trading. All P/L calculations exclude commissions and fees. Actual returns may differ.
Like this strategy on LITE?
The Scanner finds the best tickers for any strategy — ranked by VRP, IV Rank, and signal strength across 500+ stocks.
Favorable conditions for premium selling. Top pick: Short Strangle.IVR 79.5% (favorable) · VRP +6.7pp (earnings-driven edge)
Probability of Profit — See modeled win probability for this setup. Unlock on Starter.
Execution Score — AI-rated trade quality based on regime, IV, and structure. Unlock on Starter.
| #2 | Short Put Credit $3,720·MaxP $3,348·MaxL Unlimited·RoC 5.6% | Undefined Risk | Sell $600.0P · 2026-05-15 · 40 DTE | ~$33.48 to $37.20 (mid) |
| #3 | Covered Call Credit $5,475·MaxP $4,654·MaxL $71,674·RoC 6.0% | ✓ Defined | Sell $930.0C · 2026-05-15 · 40 DTE | ~$46.54 to $54.75 (mid) |
~$47.00 (bid) to $53.10 (mid)
#1 optimized strategy is free. Starter — $15/mo unlocks all ranked strategies with real-chain strikes, PoP, and RoC. The calculator below uses estimated strikes for modeling.
Confidence is rule-based (not ML). Thresholds with ORATS VRP data:
Strategy ranking uses signal, regime (RV Ratio), skew, and earnings proximity. Without liquidity data, signal confidence may be overstated for illiquid names.
Based on current conditions (strong signal, RV Ratio 0.94), VolRadar ranks Short Strangle as the top strategy for Lumentum. ~$47.00 (bid) to $53.10 (mid) Alternative: Short Put for undefined risk preference.
Max profit on a credit spread equals the net credit received. For example, if you sell a LITE put for $3.00 and buy a lower put for $1.00, your max profit is $2.00 per share ($200 per contract). The breakeven equals the short strike minus net credit. Use the calculator to model exact scenarios with LITE's current price of $771.49.
In current strong conditions, both defined and undefined risk can work for LITE. Undefined risk (short puts, strangles) offers more premium but requires more capital and active management.
18 preset strategies are available: Short Put, Covered Call, Put Credit Spread, Bear Call Spread, Iron Condor, Short Strangle, Iron Butterfly, Broken Wing Butterfly, Calendar Spread, Short Straddle, Jade Lizard, Poor Man's Covered Call, Long Call, Long Put, Bull Call Spread, Bear Put Spread, Protective Put, and Collar. Plus a custom multi-leg builder for any combination up to 4 legs with optional share positions. Each strategy shows max profit, max loss, breakeven, and probability of profit for Lumentum's current price.
Liquidity determines whether theoretical premium translates into real returns. For Lumentum, check bid-ask spreads, open interest, and daily volume on your target strikes before entering. Wide spreads (over 10-15% of the premium) reduce your actual credit and make adjustments harder. Multi-leg strategies like iron condors are especially sensitive — each leg's spread compounds. Start with the most liquid strikes and expirations, and always use limit orders.
Return on Capital (RoC) = net credit / capital at risk. For a LITE cash-secured put at $733, RoC depends on the premium vs the full strike x 100 collateral. For spreads, RoC = credit / (spread width x 100 - credit). Higher IV environments produce better RoC. Use the calculator with LITE's current price to model exact returns.
Lumentum's IV Rank is 80%, meaning current implied volatility is higher than most of the past year. This inflates all option premiums — both calls and puts cost more. For sellers, this is favorable: credit spreads, iron condors, and short puts all collect more premium. For buyers, consider whether the elevated IV is justified by upcoming events.