How are REMX 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 REMX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 53.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$457.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a REMX strangle?

The breakeven for the REMX strangle priced on this page is roughly $80.43 and $99.58 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 REMX market-implied 1-standard-deviation expected move is approximately 15.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current REMX implied volatility affect this strangle?

REMX ATM IV is at 53.50% with IV rank near 59.80%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

REMX Strangle Strategy

REMX (VanEck Rare Earth and Strategic Metals ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

VanEck ETF Trust - VanEck Rare Earth and Strategic Metals ETF is an exchange traded fund launched and managed by Van Eck Associates Corporation. It invests in public equity markets of global region. It invests in stocks of companies operating across materials, metals and mining sectors. It invests in growth and value stocks of companies across diversified market capitalization. It seeks to track the performance of the MVIS Global Rare Earth/Strategic Metals Index and MSCI ACWI Index, by using full replication technique. VanEck ETF Trust - VanEck Rare Earth and Strategic Metals ETF was formed on October 27, 2010 and is domiciled in the United States.

REMX (VanEck Rare Earth and Strategic Metals ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.13B, a beta of 1.30 versus the broader market, a 52-week range of 40.24-111.55, average daily share volume of 1.0M, a public-listing history dating back to 2010. These structural characteristics shape how REMX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.30 places REMX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. REMX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on REMX?

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 REMX snapshot

As of June 30, 2026, spot at $88.35, ATM IV 53.50%, IV rank 59.80%, expected move 15.34%. The strangle on REMX 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 REMX specifically: REMX IV at 53.50% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 15.34% (roughly $13.55 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 REMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on REMX should anchor to the underlying notional of $88.35 per share and to the trader's directional view on REMX etf.

REMX strangle setup

The REMX 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 REMX near $88.35, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REMX 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 REMX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$95.00	$1.78
Buy 1	Put	$85.00	$2.80

REMX strangle risk and reward

Net Premium / Debit: -$457.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$457.50
Breakeven(s): $80.43, $99.58
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.

REMX strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on REMX. 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	-100.0%	+$8,041.50
$19.54	-77.9%	+$6,088.14
$39.08	-55.8%	+$4,134.79
$58.61	-33.7%	+$2,181.43
$78.14	-11.6%	+$228.07
$97.68	+10.6%	-$189.72
$117.21	+32.7%	+$1,763.64
$136.74	+54.8%	+$3,717.00
$156.28	+76.9%	+$5,670.35
$175.81	+99.0%	+$7,623.71

When traders use strangle on REMX

Strangles on REMX 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 REMX chain.

REMX thesis for this strangle

The market-implied 1-standard-deviation range for REMX extends from approximately $74.80 on the downside to $101.90 on the upside. A REMX 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 REMX IV rank near 59.80% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on REMX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, REMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REMX-specific events.

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

Frequently asked questions

What is a strangle on REMX?: A strangle on REMX is the strangle strategy applied to REMX (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 REMX etf trading near $88.35, the strikes shown on this page are snapped to the nearest listed REMX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are REMX 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 REMX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 53.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$457.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a REMX strangle?: The breakeven for the REMX strangle priced on this page is roughly $80.43 and $99.58 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 REMX market-implied 1-standard-deviation expected move is approximately 15.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on REMX?: Strangles on REMX 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 REMX chain.
How does current REMX implied volatility affect this strangle?: REMX ATM IV is at 53.50% with IV rank near 59.80%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.