GOOX Strangle Strategy
GOOX (T-REX 2X Long Alphabet Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund, under normal circumstances, invests at least 80% of its net assets (plus any borrowings for investment purposes) in financial instruments that are designed to provide, in the aggregate, 200% exposure to the price performance of GOOG on a daily basis. The fund is non-diversified.
GOOX (T-REX 2X Long Alphabet Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $58.5M, a beta of 3.23 versus the broader market, a 52-week range of 16.85-105.42, average daily share volume of 188K, a public-listing history dating back to 2024. These structural characteristics shape how GOOX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.23 indicates GOOX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. GOOX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on GOOX?
A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.
Current GOOX snapshot
As of May 15, 2026, spot at $101.79, ATM IV 64.40%, IV rank 37.77%, expected move 18.46%. The strangle on GOOX 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 strangle structure on GOOX specifically: GOOX IV at 64.40% 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 18.46% (roughly $18.79 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 GOOX expiries trade a higher absolute premium for lower per-day decay. Position sizing on GOOX should anchor to the underlying notional of $101.79 per share and to the trader's directional view on GOOX etf.
GOOX strangle setup
The GOOX strangle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GOOX near $101.79, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GOOX 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 GOOX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $105.00 | $6.40 |
| Buy 1 | Put | $94.79 | $4.95 |
GOOX strangle risk and reward
- Net Premium / Debit
- -$1,135.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,135.00
- Breakeven(s)
- $83.44, $116.35
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.
GOOX strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on GOOX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$8,343.00 |
| $22.52 | -77.9% | +$6,092.48 |
| $45.02 | -55.8% | +$3,841.95 |
| $67.53 | -33.7% | +$1,591.43 |
| $90.03 | -11.6% | -$659.09 |
| $112.54 | +10.6% | -$381.39 |
| $135.04 | +32.7% | +$1,869.14 |
| $157.55 | +54.8% | +$4,119.66 |
| $180.05 | +76.9% | +$6,370.18 |
| $202.56 | +99.0% | +$8,620.70 |
When traders use strangle on GOOX
Strangles on GOOX are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the GOOX chain.
GOOX thesis for this strangle
The market-implied 1-standard-deviation range for GOOX extends from approximately $83.00 on the downside to $120.58 on the upside. A GOOX long strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. Current GOOX IV rank near 37.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on GOOX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, GOOX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GOOX-specific events.
GOOX strangle positions are structurally neutral / high-volatility (long premium, OTM); 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. GOOX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GOOX alongside the broader basket even when GOOX-specific fundamentals are unchanged. Always rebuild the position from current GOOX chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on GOOX?
- A strangle on GOOX is the strangle strategy applied to GOOX (etf). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. With GOOX etf trading near $101.79, the strikes shown on this page are snapped to the nearest listed GOOX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GOOX strangle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the GOOX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 64.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,135.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GOOX strangle?
- The breakeven for the GOOX strangle priced on this page is roughly $83.44 and $116.35 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 GOOX market-implied 1-standard-deviation expected move is approximately 18.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on GOOX?
- Strangles on GOOX are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the GOOX chain.
- How does current GOOX implied volatility affect this strangle?
- GOOX ATM IV is at 64.40% with IV rank near 37.77%, 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.