How are ACI 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 ACI strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 46.59%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$108.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ACI strangle?

The breakeven for the ACI strangle priced on this page is roughly $11.92 and $15.08 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 ACI market-implied 1-standard-deviation expected move is approximately 13.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ACI implied volatility affect this strangle?

ACI ATM IV is at 46.59% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

ACI Strangle Strategy

ACI (Albertsons Companies, Inc.), in the Consumer Defensive sector, (Grocery Stores industry), listed on NYSE.

Albertsons Companies, Inc., through its subsidiaries, operates in the food and drug retail industry in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, vaccines, fuel, and other items and services. It also operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, ACME, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and in-store pharmacies and branded coffee shops, fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho.

ACI (Albertsons Companies, Inc.) trades in the Consumer Defensive sector, specifically Grocery Stores, with a market capitalization of approximately $6.66B, a trailing P/E of 31.86, a beta of 0.23 versus the broader market, a 52-week range of 13.31-22.78, average daily share volume of 7.2M, a public-listing history dating back to 2020, approximately 280K full-time employees. These structural characteristics shape how ACI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.23 indicates ACI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ACI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on ACI?

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 ACI snapshot

As of June 29, 2026, spot at $13.48, ATM IV 46.59%, IV rank 100.00%, expected move 13.36%. The strangle on ACI 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 32-day expiry.

Why this strangle structure on ACI specifically: ACI IV at 46.59% is rich versus its 1-year range, which makes a premium-buying ACI strangle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 13.36% (roughly $1.80 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ACI expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACI should anchor to the underlying notional of $13.48 per share and to the trader's directional view on ACI stock.

ACI strangle setup

The ACI 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 ACI near $13.48, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACI chain at a 32-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 ACI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$14.00	$0.50
Buy 1	Put	$13.00	$0.58

ACI strangle risk and reward

Net Premium / Debit: -$108.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$108.00
Breakeven(s): $11.92, $15.08
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.

ACI strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on ACI. 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%	+$1,191.00
$2.99	-77.8%	+$893.06
$5.97	-55.7%	+$595.12
$8.95	-33.6%	+$297.18
$11.93	-11.5%	-$0.76
$14.91	+10.6%	-$17.30
$17.89	+32.7%	+$280.64
$20.87	+54.8%	+$578.58
$23.85	+76.9%	+$876.52
$26.82	+99.0%	+$1,174.46

When traders use strangle on ACI

Strangles on ACI 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 ACI chain.

ACI thesis for this strangle

The market-implied 1-standard-deviation range for ACI extends from approximately $11.68 on the downside to $15.28 on the upside. A ACI 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 ACI IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on ACI at 46.59%. As a Consumer Defensive name, ACI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACI-specific events.

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

Frequently asked questions

What is a strangle on ACI?: A strangle on ACI is the strangle strategy applied to ACI (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 ACI stock trading near $13.48, the strikes shown on this page are snapped to the nearest listed ACI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ACI 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 ACI strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 46.59%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$108.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ACI strangle?: The breakeven for the ACI strangle priced on this page is roughly $11.92 and $15.08 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 ACI market-implied 1-standard-deviation expected move is approximately 13.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on ACI?: Strangles on ACI 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 ACI chain.
How does current ACI implied volatility affect this strangle?: ACI ATM IV is at 46.59% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.