How are TMH 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 TMH strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 30.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TMH strangle?

The breakeven for the TMH strangle priced on this page is roughly $47.25 and $56.75 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 TMH market-implied 1-standard-deviation expected move is approximately 8.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TMH implied volatility affect this strangle?

TMH ATM IV is at 30.50% with IV rank near 33.27%, 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.

TMH Strangle Strategy

TMH (Toyota Motor Corporation ADRhedged), in the Consumer Cyclical sector, (Auto - Parts industry), listed on AMEX.

The Series, under normal circumstances, invests at least 95% of its net assets in American Depositary Receipts (“ADRs”) of the Toyota Motor Corporation (the “Company”). It invests in the ADRs of the company and a currency swap (the “Currency Hedge Contract”) designed to hedge against fluctuations in the exchange rate between the U.S. dollar and the Japanese Yen (“Local Currency”). The fund is non-diversified.

TMH (Toyota Motor Corporation ADRhedged) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $3.75B, a trailing P/E of 44.31, a beta of -0.15 versus the broader market, a 52-week range of 45.5-65.814, average daily share volume of 1K, a public-listing history dating back to 2025. These structural characteristics shape how TMH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.15 indicates TMH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 44.31 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. TMH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on TMH?

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 TMH snapshot

As of May 15, 2026, spot at $52.07, ATM IV 30.50%, IV rank 33.27%, expected move 8.74%. The strangle on TMH 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 34-day expiry.

Why this strangle structure on TMH specifically: TMH IV at 30.50% 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 8.74% (roughly $4.55 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMH should anchor to the underlying notional of $52.07 per share and to the trader's directional view on TMH etf.

TMH strangle setup

The TMH 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 TMH near $52.07, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMH chain at a 34-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 TMH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$55.00	$0.99
Buy 1	Put	$49.00	$0.76

TMH strangle risk and reward

Net Premium / Debit: -$175.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$175.00
Breakeven(s): $47.25, $56.75
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.

TMH strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on TMH. 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%	+$4,724.00
$11.52	-77.9%	+$3,572.81
$23.03	-55.8%	+$2,421.63
$34.55	-33.7%	+$1,270.44
$46.06	-11.5%	+$119.26
$57.57	+10.6%	+$81.93
$69.08	+32.7%	+$1,233.12
$80.59	+54.8%	+$2,384.30
$92.10	+76.9%	+$3,535.49
$103.62	+99.0%	+$4,686.67

When traders use strangle on TMH

Strangles on TMH 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 TMH chain.

TMH thesis for this strangle

The market-implied 1-standard-deviation range for TMH extends from approximately $47.52 on the downside to $56.62 on the upside. A TMH 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 TMH IV rank near 33.27% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on TMH should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, TMH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMH-specific events.

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

Frequently asked questions

What is a strangle on TMH?: A strangle on TMH is the strangle strategy applied to TMH (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 TMH etf trading near $52.07, the strikes shown on this page are snapped to the nearest listed TMH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TMH 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 TMH strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 30.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TMH strangle?: The breakeven for the TMH strangle priced on this page is roughly $47.25 and $56.75 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 TMH market-implied 1-standard-deviation expected move is approximately 8.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on TMH?: Strangles on TMH 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 TMH chain.
How does current TMH implied volatility affect this strangle?: TMH ATM IV is at 30.50% with IV rank near 33.27%, 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.