QRFT Strangle Strategy
QRFT (QRAFT AI-Enhanced U.S. Large Cap ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is an actively-managed ETF that seeks to achieve its investment objective by utilizing an investment strategy enhanced by the use of artificial intelligence. The fund invests at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in securities of U.S.-listed large capitalization companies. In pursuing its investment objective, the Adviser consults a database generated by Qraft's AI Quantitative Investment System, which automatically evaluates and filters data according to parameters supporting a particular investment thesis. The fund is non-diversified.
QRFT (QRAFT AI-Enhanced U.S. Large Cap ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $15.0M, a beta of 1.07 versus the broader market, a 52-week range of 52.5-69.255, average daily share volume of 2K, a public-listing history dating back to 2019. These structural characteristics shape how QRFT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places QRFT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QRFT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on QRFT?
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 QRFT snapshot
As of May 15, 2026, spot at $68.63, ATM IV 14.80%, IV rank 0.58%, expected move 4.24%. The strangle on QRFT 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 QRFT specifically: QRFT IV at 14.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a QRFT strangle, with a market-implied 1-standard-deviation move of approximately 4.24% (roughly $2.91 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 QRFT expiries trade a higher absolute premium for lower per-day decay. Position sizing on QRFT should anchor to the underlying notional of $68.63 per share and to the trader's directional view on QRFT etf.
QRFT strangle setup
The QRFT 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 QRFT near $68.63, the first option leg uses a $72.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QRFT 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 QRFT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $72.00 | $0.59 |
| Buy 1 | Put | $65.00 | $0.53 |
QRFT strangle risk and reward
- Net Premium / Debit
- -$112.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$112.00
- Breakeven(s)
- $63.88, $73.12
- 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.
QRFT strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on QRFT. 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% | +$6,387.00 |
| $15.18 | -77.9% | +$4,869.66 |
| $30.36 | -55.8% | +$3,352.33 |
| $45.53 | -33.7% | +$1,834.99 |
| $60.70 | -11.5% | +$317.65 |
| $75.88 | +10.6% | +$275.68 |
| $91.05 | +32.7% | +$1,793.02 |
| $106.22 | +54.8% | +$3,310.36 |
| $121.40 | +76.9% | +$4,827.69 |
| $136.57 | +99.0% | +$6,345.03 |
When traders use strangle on QRFT
Strangles on QRFT 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 QRFT chain.
QRFT thesis for this strangle
The market-implied 1-standard-deviation range for QRFT extends from approximately $65.72 on the downside to $71.54 on the upside. A QRFT 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 QRFT IV rank near 0.58% 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 QRFT at 14.80%. As a Financial Services name, QRFT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QRFT-specific events.
QRFT 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. QRFT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QRFT alongside the broader basket even when QRFT-specific fundamentals are unchanged. Always rebuild the position from current QRFT chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on QRFT?
- A strangle on QRFT is the strangle strategy applied to QRFT (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 QRFT etf trading near $68.63, the strikes shown on this page are snapped to the nearest listed QRFT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QRFT 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 QRFT strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 14.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$112.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QRFT strangle?
- The breakeven for the QRFT strangle priced on this page is roughly $63.88 and $73.12 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 QRFT market-implied 1-standard-deviation expected move is approximately 4.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on QRFT?
- Strangles on QRFT 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 QRFT chain.
- How does current QRFT implied volatility affect this strangle?
- QRFT ATM IV is at 14.80% with IV rank near 0.58%, 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.