How are ADMA 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 ADMA strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 61.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$120.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ADMA strangle?

The breakeven for the ADMA strangle priced on this page is roughly $6.80 and $10.20 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 ADMA market-implied 1-standard-deviation expected move is approximately 17.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ADMA implied volatility affect this strangle?

ADMA ATM IV is at 61.90% with IV rank near 10.11%, 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.

ADMA Strangle Strategy

ADMA (ADMA Biologics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

ADMA Biologics, Inc. functions as a biopharmaceutical company specializing in the development, manufacturing, and commercialization of advanced biologic therapies derived from blood plasma. These specialized products are engineered to address immune system disorders and infectious diseases, catering to markets across the United States and internationally. Their current product portfolio includes BIVIGAM and ASCENIV, both intravenous immune globulin (IVIG) treatments prescribed for primary humoral immunodeficiency (PI). Additionally, the company offers Nabi-HB, utilized for immediate treatment following acute exposure to the Hepatitis B virus and other specified exposures. Beyond its existing offerings, ADMA is actively developing a pipeline of new plasma-derived therapeutics. This includes immunoglobulin products specifically targeting the prevention and treatment of S. pneumonia infections.

ADMA (ADMA Biologics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.03B, a trailing P/E of 12.49, a beta of 0.73 versus the broader market, a 52-week range of 7.21-20.458, average daily share volume of 5.5M, a public-listing history dating back to 2013, approximately 685 full-time employees. These structural characteristics shape how ADMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.73 places ADMA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a strangle on ADMA?

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 ADMA snapshot

As of June 30, 2026, spot at $8.46, ATM IV 61.90%, IV rank 10.11%, expected move 17.75%. The strangle on ADMA 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 52-day expiry.

Why this strangle structure on ADMA specifically: ADMA IV at 61.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a ADMA strangle, with a market-implied 1-standard-deviation move of approximately 17.75% (roughly $1.50 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADMA should anchor to the underlying notional of $8.46 per share and to the trader's directional view on ADMA stock.

ADMA strangle setup

The ADMA 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 ADMA near $8.46, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADMA chain at a 52-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 ADMA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$9.00	$0.65
Buy 1	Put	$8.00	$0.55

ADMA strangle risk and reward

Net Premium / Debit: -$120.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$120.00
Breakeven(s): $6.80, $10.20
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.

ADMA strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on ADMA. 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%	+$679.00
$1.88	-77.8%	+$492.06
$3.75	-55.7%	+$305.11
$5.62	-33.6%	+$118.17
$7.49	-11.5%	-$68.78
$9.36	+10.6%	-$84.28
$11.23	+32.7%	+$102.67
$13.10	+54.8%	+$289.61
$14.97	+76.9%	+$476.56
$16.84	+99.0%	+$663.50

When traders use strangle on ADMA

Strangles on ADMA 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 ADMA chain.

ADMA thesis for this strangle

The market-implied 1-standard-deviation range for ADMA extends from approximately $6.96 on the downside to $9.96 on the upside. A ADMA 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 ADMA IV rank near 10.11% 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 ADMA at 61.90%. As a Healthcare name, ADMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADMA-specific events.

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

Frequently asked questions

What is a strangle on ADMA?: A strangle on ADMA is the strangle strategy applied to ADMA (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 ADMA stock trading near $8.46, the strikes shown on this page are snapped to the nearest listed ADMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ADMA 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 ADMA strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 61.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$120.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ADMA strangle?: The breakeven for the ADMA strangle priced on this page is roughly $6.80 and $10.20 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 ADMA market-implied 1-standard-deviation expected move is approximately 17.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on ADMA?: Strangles on ADMA 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 ADMA chain.
How does current ADMA implied volatility affect this strangle?: ADMA ATM IV is at 61.90% with IV rank near 10.11%, 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.