KURE Strangle Strategy
KURE (KraneShares MSCI All China Health Care Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in instruments in its underlying index or in instruments that have economic characteristics similar to those in the underlying index. The underlying index is a free float adjusted market capitalization weighted index, subject to the 10/40 Constraint, which is designed to measure the equity market performance of Chinese companies in the healthcare sector. The fund is non-diversified.
KURE (KraneShares MSCI All China Health Care Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $82.7M, a beta of 0.50 versus the broader market, a 52-week range of 15.202-21.875, average daily share volume of 21K, a public-listing history dating back to 2018. These structural characteristics shape how KURE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.50 indicates KURE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KURE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on KURE?
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 KURE snapshot
As of May 13, 2026, spot at $17.46, ATM IV 40.90%, IV rank 8.54%, expected move 11.73%. The strangle on KURE 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 63-day expiry.
Why this strangle structure on KURE specifically: KURE IV at 40.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a KURE strangle, with a market-implied 1-standard-deviation move of approximately 11.73% (roughly $2.05 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KURE expiries trade a higher absolute premium for lower per-day decay. Position sizing on KURE should anchor to the underlying notional of $17.46 per share and to the trader's directional view on KURE etf.
KURE strangle setup
The KURE 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 KURE near $17.46, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KURE chain at a 63-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 KURE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $18.00 | $0.78 |
| Buy 1 | Put | $17.00 | $1.35 |
KURE strangle risk and reward
- Net Premium / Debit
- -$213.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$213.00
- Breakeven(s)
- $14.87, $20.13
- 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.
KURE strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on KURE. 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 | -99.9% | +$1,486.00 |
| $3.87 | -77.8% | +$1,100.06 |
| $7.73 | -55.7% | +$714.12 |
| $11.59 | -33.6% | +$328.18 |
| $15.45 | -11.5% | -$57.76 |
| $19.31 | +10.6% | -$82.30 |
| $23.17 | +32.7% | +$303.64 |
| $27.03 | +54.8% | +$689.58 |
| $30.89 | +76.9% | +$1,075.52 |
| $34.74 | +99.0% | +$1,461.46 |
When traders use strangle on KURE
Strangles on KURE 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 KURE chain.
KURE thesis for this strangle
The market-implied 1-standard-deviation range for KURE extends from approximately $15.41 on the downside to $19.51 on the upside. A KURE 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 KURE IV rank near 8.54% 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 KURE at 40.90%. As a Financial Services name, KURE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KURE-specific events.
KURE 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. KURE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KURE alongside the broader basket even when KURE-specific fundamentals are unchanged. Always rebuild the position from current KURE chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on KURE?
- A strangle on KURE is the strangle strategy applied to KURE (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 KURE etf trading near $17.46, the strikes shown on this page are snapped to the nearest listed KURE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KURE 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 KURE strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 40.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$213.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KURE strangle?
- The breakeven for the KURE strangle priced on this page is roughly $14.87 and $20.13 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 KURE market-implied 1-standard-deviation expected move is approximately 11.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on KURE?
- Strangles on KURE 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 KURE chain.
- How does current KURE implied volatility affect this strangle?
- KURE ATM IV is at 40.90% with IV rank near 8.54%, 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.