LendingClub Options Analysis: $20 Put Contract Offers Attractive Yield
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Source: NASDAQ.COM
- Put Option Appeal: The current bid for the $20.00 put option is 40 cents, allowing investors to effectively purchase shares at $19.60, representing a 2% discount to the current price of $20.31, making it an attractive alternative.
- Yield Potential: Should the put option expire worthless, it would yield a 2.00% return, or an annualized 11.41%, highlighting the potential profitability of this strategy.
- Call Option Opportunity: The $21.00 call option has a current bid of 20 cents; if shares are purchased at $20.31 and the call is sold, a total return of 4.38% is possible if exercised, indicating significant upside potential.
- Risk Assessment: Current analytics suggest a 57% chance of the $20 put expiring worthless and a 49% chance for the $21 call, emphasizing the need for investors to consider these risks in their decision-making process.
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Analyst Views on LC
Wall Street analysts forecast LC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LC is 23.00 USD with a low forecast of 20.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 19.570
Low
20.00
Averages
23.00
High
26.00
Current: 19.570
Low
20.00
Averages
23.00
High
26.00
About LC
LendingClub Corporation is a bank holding company. The Company operates its business, through its subsidiary, LendingClub Bank, National Association (LC Bank). LC Bank is the digital marketplace bank in the United States where members can access a range of financial products and services designed to help them pay less when borrowing and earn more when saving. It offers a suite of deposit and loan products through a smart, simple and rewarding digital experience. LC Bank retains loans and funds those loans directly with its own capital and deposits. LC Bank’s primary loan products include unsecured personal loans, secured auto refinance loans, and patient and education finance loans. LC Bank’s commercial lending business is primarily focused on small businesses, and it participates in the United States small business administration lending programs. LC Bank’s deposit business includes sourcing deposits directly from customers and from third-party marketing channels and deposit brokers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
LendingClub Issues Soft Q1 2026 Earnings Guidance Amid Strong Q4 Results
- Soft Earnings Guidance: LendingClub projects Q1 2026 GAAP EPS between $0.34 and $0.39, trailing the $0.30 average analyst estimate, leading to an 8.3% drop in after-hours trading, indicating market concerns over future profitability.
- Strong Q4 Performance: Q4 EPS of $0.35 exceeded Wall Street's $0.33 expectation but fell from $0.37 in the prior quarter, reflecting challenges in sustaining profit growth, while Q4 net revenue reached $266.5 million, slightly above the $262 million forecast.
- Stable Loan Originations: Q4 loan originations held steady at $2.6 billion, showing a 40% year-over-year increase, indicating robust market demand despite the pressure from the earnings guidance, which underscores the company's operational resilience.
- Positive Future Outlook: CEO Scott Sanborn emphasized entering 2026 from a position of strength, with plans to leverage product innovations and marketing investments to enhance earnings power, particularly through new opportunities in home improvement financing, reflecting confidence in future growth.
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LendingClub Reports Strong Q4 Earnings but Shares Drop 13%
- Strong Performance: LendingClub reported Q4 2025 diluted EPS of $0.35 and total revenue of nearly $267 million, driven by approximately $2.6 billion in loan originations, all significantly higher year-over-year and exceeding market expectations.
- Optimistic Guidance: The company guided for $2.6 billion in loan originations and diluted EPS of $0.365 for Q1 2026, with full-year guidance of $12.1 billion in originations and EPS of $1.725, reflecting 48% and 26% year-over-year growth, indicating robust growth potential.
- Accounting Change Impact: LendingClub plans to mark all loans as held-for-sale (HFS), shifting from previously accounting for some loans as held-for-investment (HFI), which may lead investors to misinterpret future guidance, impacting stock performance.
- Cautious Market Reaction: Despite strong earnings, shares dropped nearly 13%, trading at about 10 times forward earnings, suggesting that the market needs time to digest the new accounting policy, presenting a potential entry point for investors.
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