How are ACA 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 ACA strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$605.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ACA strangle?

The breakeven for the ACA strangle priced on this page is roughly $113.95 and $136.05 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 ACA market-implied 1-standard-deviation expected move is approximately 9.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ACA implied volatility affect this strangle?

ACA ATM IV is at 33.00% with IV rank near 3.43%, 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.

ACA Strangle Strategy

ACA (Arcosa, Inc.), in the Industrials sector, (Industrial - Infrastructure Operations industry), listed on NYSE.

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, energy, and transportation markets in North America. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and trench shields and shoring products for residential and non-residential construction, agriculture, specialty building products, as well as for infrastructure related projects. The Engineered Structures segment provides utility structures, wind towers, traffic and lighting structures, telecommunication structures, storage and distribution tanks for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets, as well as for gas and liquids storage and transportation for residential, commercial, energy, agriculture, and industrial markets. The Transportation Products segment offers inland barges; fiberglass barge covers, winches, and other components; cast components for industrial and mining sectors; and axles, circular forgings, coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.

ACA (Arcosa, Inc.) trades in the Industrials sector, specifically Industrial - Infrastructure Operations, with a market capitalization of approximately $6.33B, a trailing P/E of 28.37, a beta of 1.08 versus the broader market, a 52-week range of 81.91-135.58, average daily share volume of 337K, a public-listing history dating back to 2018, approximately 6K full-time employees. These structural characteristics shape how ACA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places ACA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ACA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on ACA?

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 ACA snapshot

As of May 15, 2026, spot at $124.17, ATM IV 33.00%, IV rank 3.43%, expected move 9.46%. The strangle on ACA 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 ACA specifically: ACA IV at 33.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a ACA strangle, with a market-implied 1-standard-deviation move of approximately 9.46% (roughly $11.75 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 ACA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACA should anchor to the underlying notional of $124.17 per share and to the trader's directional view on ACA stock.

ACA strangle setup

The ACA 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 ACA near $124.17, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACA 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 ACA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$130.00	$3.03
Buy 1	Put	$120.00	$3.03

ACA strangle risk and reward

Net Premium / Debit: -$605.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$605.00
Breakeven(s): $113.95, $136.05
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.

ACA strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on ACA. 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%	+$11,394.00
$27.46	-77.9%	+$8,648.64
$54.92	-55.8%	+$5,903.29
$82.37	-33.7%	+$3,157.93
$109.82	-11.6%	+$412.57
$137.28	+10.6%	+$122.78
$164.73	+32.7%	+$2,868.14
$192.18	+54.8%	+$5,613.50
$219.64	+76.9%	+$8,358.85
$247.09	+99.0%	+$11,104.21

When traders use strangle on ACA

Strangles on ACA 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 ACA chain.

ACA thesis for this strangle

The market-implied 1-standard-deviation range for ACA extends from approximately $112.42 on the downside to $135.92 on the upside. A ACA 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 ACA IV rank near 3.43% 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 ACA at 33.00%. As a Industrials name, ACA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACA-specific events.

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

Frequently asked questions

What is a strangle on ACA?: A strangle on ACA is the strangle strategy applied to ACA (stock). 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 ACA stock trading near $124.17, the strikes shown on this page are snapped to the nearest listed ACA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ACA 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 ACA strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$605.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ACA strangle?: The breakeven for the ACA strangle priced on this page is roughly $113.95 and $136.05 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 ACA market-implied 1-standard-deviation expected move is approximately 9.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on ACA?: Strangles on ACA 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 ACA chain.
How does current ACA implied volatility affect this strangle?: ACA ATM IV is at 33.00% with IV rank near 3.43%, 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.