How are MAXI 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 MAXI strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 43.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$147.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAXI strangle?

The breakeven for the MAXI strangle priced on this page is roughly $6.53 and $10.47 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 MAXI market-implied 1-standard-deviation expected move is approximately 12.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAXI implied volatility affect this strangle?

MAXI ATM IV is at 43.10% with IV rank near 5.66%, 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.

MAXI Strangle Strategy

MAXI (Simplify Bitcoin Strategy PLUS Income ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on NASDAQ.

The Simplify Bitcoin Strategy PLUS Income ETF, known as MAXI, targets capital growth through its dynamic management of investments linked to Bitcoin. To generate additional revenue, a carefully crafted, risk-managed options overlay is integrated into the portfolio. The fund's allocation to Bitcoin-related assets is highly flexible, ranging from 50% to an aggressive 200% of its net asset value, guided by an exclusive, in-house technical model. Rather than direct ownership, this exposure is achieved through diverse financial vehicles such as Bitcoin exchange-traded funds (ETFs), futures contracts, options, or swap agreements. The income generation from options primarily involves writing put spreads on a broad spectrum of underlying assets, including major equity indices, as well as exchange-traded funds focused on bonds and commodities. It is important to note that the fund explicitly avoids direct investment in physical Bitcoin.

MAXI (Simplify Bitcoin Strategy PLUS Income ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $23.5M, a beta of 1.47 versus the broader market, a 52-week range of 8.25-36.34, average daily share volume of 27K, a public-listing history dating back to 2022. These structural characteristics shape how MAXI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.47 indicates MAXI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAXI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on MAXI?

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 MAXI snapshot

As of June 30, 2026, spot at $8.32, ATM IV 43.10%, IV rank 5.66%, expected move 12.36%. The strangle on MAXI 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 80-day expiry.

Why this strangle structure on MAXI specifically: MAXI IV at 43.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a MAXI strangle, with a market-implied 1-standard-deviation move of approximately 12.36% (roughly $1.03 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAXI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAXI should anchor to the underlying notional of $8.32 per share and to the trader's directional view on MAXI etf.

MAXI strangle setup

The MAXI 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 MAXI near $8.32, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAXI chain at a 80-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 MAXI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$9.00	$0.70
Buy 1	Put	$8.00	$0.77

MAXI strangle risk and reward

Net Premium / Debit: -$147.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$147.00
Breakeven(s): $6.53, $10.47
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.

MAXI strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on MAXI. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$652.00
$1.85	-77.8%	+$468.15
$3.69	-55.7%	+$284.30
$5.53	-33.6%	+$100.45
$7.36	-11.5%	-$83.40
$9.20	+10.6%	-$126.75
$11.04	+32.7%	+$57.10
$12.88	+54.8%	+$240.94
$14.72	+76.9%	+$424.79
$16.56	+99.0%	+$608.64

When traders use strangle on MAXI

Strangles on MAXI 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 MAXI chain.

MAXI thesis for this strangle

The market-implied 1-standard-deviation range for MAXI extends from approximately $7.29 on the downside to $9.35 on the upside. A MAXI 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 MAXI IV rank near 5.66% 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 MAXI at 43.10%. As a Financial Services name, MAXI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAXI-specific events.

MAXI 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. MAXI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAXI alongside the broader basket even when MAXI-specific fundamentals are unchanged. Always rebuild the position from current MAXI chain quotes before placing a trade.

Frequently asked questions

What is a strangle on MAXI?: A strangle on MAXI is the strangle strategy applied to MAXI (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 MAXI etf trading near $8.32, the strikes shown on this page are snapped to the nearest listed MAXI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MAXI 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 MAXI strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 43.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$147.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAXI strangle?: The breakeven for the MAXI strangle priced on this page is roughly $6.53 and $10.47 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 MAXI market-implied 1-standard-deviation expected move is approximately 12.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on MAXI?: Strangles on MAXI 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 MAXI chain.
How does current MAXI implied volatility affect this strangle?: MAXI ATM IV is at 43.10% with IV rank near 5.66%, 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.