KRMA Strangle Strategy
KRMA (Global X - Conscious Companies ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
The Global X Conscious Companies ETF, trading under the ticker KRMA, is designed to replicate the overall returns—encompassing both price changes and income generated—of the Concinnity Conscious Companies Index. This objective is pursued before the deduction of any fund fees or operational expenses.
KRMA (Global X - Conscious Companies ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $599.5M, a beta of 0.99 versus the broader market, a 52-week range of 40.231-49.049, average daily share volume of 3K, a public-listing history dating back to 2016. These structural characteristics shape how KRMA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places KRMA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KRMA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on KRMA?
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 KRMA snapshot
As of June 30, 2026, spot at $46.99, ATM IV 23.60%, IV rank 10.45%, expected move 6.77%. The strangle on KRMA 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 143-day expiry.
Why this strangle structure on KRMA specifically: KRMA IV at 23.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a KRMA strangle, with a market-implied 1-standard-deviation move of approximately 6.77% (roughly $3.18 on the underlying). The 143-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KRMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRMA should anchor to the underlying notional of $46.99 per share and to the trader's directional view on KRMA etf.
KRMA strangle setup
The KRMA 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 KRMA near $46.99, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRMA chain at a 143-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 KRMA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $49.00 | $1.21 |
| Buy 1 | Put | $45.00 | $0.78 |
KRMA strangle risk and reward
- Net Premium / Debit
- -$199.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$199.00
- Breakeven(s)
- $43.01, $50.99
- 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.
KRMA strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on KRMA. 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% | +$4,300.00 |
| $10.40 | -77.9% | +$3,261.14 |
| $20.79 | -55.8% | +$2,222.27 |
| $31.18 | -33.7% | +$1,183.41 |
| $41.56 | -11.5% | +$144.54 |
| $51.95 | +10.6% | +$96.32 |
| $62.34 | +32.7% | +$1,135.19 |
| $72.73 | +54.8% | +$2,174.05 |
| $83.12 | +76.9% | +$3,212.91 |
| $93.51 | +99.0% | +$4,251.78 |
When traders use strangle on KRMA
Strangles on KRMA 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 KRMA chain.
KRMA thesis for this strangle
The market-implied 1-standard-deviation range for KRMA extends from approximately $43.81 on the downside to $50.17 on the upside. A KRMA 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 KRMA IV rank near 10.45% 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 KRMA at 23.60%. As a Financial Services name, KRMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRMA-specific events.
KRMA 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. KRMA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRMA alongside the broader basket even when KRMA-specific fundamentals are unchanged. Always rebuild the position from current KRMA chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on KRMA?
- A strangle on KRMA is the strangle strategy applied to KRMA (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 KRMA etf trading near $46.99, the strikes shown on this page are snapped to the nearest listed KRMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KRMA 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 KRMA strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 23.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$199.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KRMA strangle?
- The breakeven for the KRMA strangle priced on this page is roughly $43.01 and $50.99 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 KRMA market-implied 1-standard-deviation expected move is approximately 6.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on KRMA?
- Strangles on KRMA 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 KRMA chain.
- How does current KRMA implied volatility affect this strangle?
- KRMA ATM IV is at 23.60% with IV rank near 10.45%, 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.