MAKX Strangle Strategy
MAKX (ProShares - S&P Kensho Smart Factories ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This fund aims to track the performance of an underlying index, with its security holdings chosen by ProShare Advisors. The index comprises companies dedicated to creating the technologies that drive the digitalization of manufacturing activities, essentially enabling smart factories. To achieve its goal, the fund fully replicates the index by investing in all its component securities in roughly the same proportions. This investment vehicle is non-diversified.
MAKX (ProShares - S&P Kensho Smart Factories ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.5M, a beta of 1.87 versus the broader market, a 52-week range of 45.505-75.53, average daily share volume of 2K, a public-listing history dating back to 2021. These structural characteristics shape how MAKX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.87 indicates MAKX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAKX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on MAKX?
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 MAKX snapshot
As of June 30, 2026, spot at $74.34, ATM IV 30.20%, IV rank 24.31%, expected move 8.66%. The strangle on MAKX 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 17-day expiry.
Why this strangle structure on MAKX specifically: MAKX IV at 30.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a MAKX strangle, with a market-implied 1-standard-deviation move of approximately 8.66% (roughly $6.44 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAKX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAKX should anchor to the underlying notional of $74.34 per share and to the trader's directional view on MAKX etf.
MAKX strangle setup
The MAKX 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 MAKX near $74.34, the first option leg uses a $78.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAKX chain at a 17-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 MAKX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $78.00 | $0.49 |
| Buy 1 | Put | $71.00 | $0.85 |
MAKX strangle risk and reward
- Net Premium / Debit
- -$134.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$134.00
- Breakeven(s)
- $69.66, $79.34
- 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.
MAKX strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on MAKX. 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% | +$6,965.00 |
| $16.45 | -77.9% | +$5,321.41 |
| $32.88 | -55.8% | +$3,677.82 |
| $49.32 | -33.7% | +$2,034.24 |
| $65.75 | -11.6% | +$390.65 |
| $82.19 | +10.6% | +$284.94 |
| $98.63 | +32.7% | +$1,928.53 |
| $115.06 | +54.8% | +$3,572.12 |
| $131.50 | +76.9% | +$5,215.70 |
| $147.93 | +99.0% | +$6,859.29 |
When traders use strangle on MAKX
Strangles on MAKX 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 MAKX chain.
MAKX thesis for this strangle
The market-implied 1-standard-deviation range for MAKX extends from approximately $67.90 on the downside to $80.78 on the upside. A MAKX 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 MAKX IV rank near 24.31% 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 MAKX at 30.20%. As a Financial Services name, MAKX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAKX-specific events.
MAKX 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. MAKX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAKX alongside the broader basket even when MAKX-specific fundamentals are unchanged. Always rebuild the position from current MAKX chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on MAKX?
- A strangle on MAKX is the strangle strategy applied to MAKX (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 MAKX etf trading near $74.34, the strikes shown on this page are snapped to the nearest listed MAKX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MAKX 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 MAKX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 30.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$134.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MAKX strangle?
- The breakeven for the MAKX strangle priced on this page is roughly $69.66 and $79.34 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 MAKX market-implied 1-standard-deviation expected move is approximately 8.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on MAKX?
- Strangles on MAKX 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 MAKX chain.
- How does current MAKX implied volatility affect this strangle?
- MAKX ATM IV is at 30.20% with IV rank near 24.31%, 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.