How are AEHR 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 AEHR strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 136.79%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,545.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AEHR strangle?

The breakeven for the AEHR strangle priced on this page is roughly $69.55 and $130.45 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 AEHR market-implied 1-standard-deviation expected move is approximately 39.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AEHR implied volatility affect this strangle?

AEHR ATM IV is at 136.79% with IV rank near 64.34%, 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.

AEHR Strangle Strategy

AEHR (Aehr Test Systems), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Aehr Test Systems provides test systems for burning-in and testing logic, optical, and memory integrated circuits worldwide. It offers products, such as the ABTS and FOX-P families of test and burn-in systems and FOX WaferPak Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier, and FOX DiePak Loader. The ABTS system is used in production and qualification testing of packaged parts for lower power and higher power logic devices, as well as various common types of memory devices. The FOX-XP and FOX-NP systems are wafer contact and singulated die/module test and burn-in systems used for burn-in and functional test of complex devices, such as memories, digital signal processors, microprocessors, microcontrollers, systems-on-a-chip, and integrated optical devices. The FOX-CP system is a single-wafer compact test and reliability verification solution for logic, memory, and photonic devices. The WaferPak Contactor contains a unique full wafer probe card capable of testing wafers up to 300mm that enables IC manufacturers to perform test and burn-in of full wafers on Aehr Test FOX systems.

AEHR (Aehr Test Systems) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $3.25B, a beta of 3.27 versus the broader market, a 52-week range of 8.31-107, average daily share volume of 3.0M, a public-listing history dating back to 1997, approximately 115 full-time employees. These structural characteristics shape how AEHR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.27 indicates AEHR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a strangle on AEHR?

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 AEHR snapshot

As of May 15, 2026, spot at $99.68, ATM IV 136.79%, IV rank 64.34%, expected move 39.22%. The strangle on AEHR 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 28-day expiry.

Why this strangle structure on AEHR specifically: AEHR IV at 136.79% 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 39.22% (roughly $39.09 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AEHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AEHR should anchor to the underlying notional of $99.68 per share and to the trader's directional view on AEHR stock.

AEHR strangle setup

The AEHR 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 AEHR near $99.68, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AEHR chain at a 28-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 AEHR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$13.15
Buy 1	Put	$95.00	$12.30

AEHR strangle risk and reward

Net Premium / Debit: -$2,545.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,545.00
Breakeven(s): $69.55, $130.45
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.

AEHR strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on AEHR. 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%	+$6,954.00
$22.05	-77.9%	+$4,750.13
$44.09	-55.8%	+$2,546.26
$66.13	-33.7%	+$342.39
$88.16	-11.6%	-$1,861.48
$110.20	+10.6%	-$2,024.65
$132.24	+32.7%	+$179.22
$154.28	+54.8%	+$2,383.09
$176.32	+76.9%	+$4,586.95
$198.36	+99.0%	+$6,790.82

When traders use strangle on AEHR

Strangles on AEHR 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 AEHR chain.

AEHR thesis for this strangle

The market-implied 1-standard-deviation range for AEHR extends from approximately $60.59 on the downside to $138.77 on the upside. A AEHR 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 AEHR IV rank near 64.34% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on AEHR should anchor more to the directional view and the expected-move geometry. As a Technology name, AEHR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AEHR-specific events.

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

Frequently asked questions

What is a strangle on AEHR?: A strangle on AEHR is the strangle strategy applied to AEHR (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 AEHR stock trading near $99.68, the strikes shown on this page are snapped to the nearest listed AEHR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AEHR 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 AEHR strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 136.79%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,545.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AEHR strangle?: The breakeven for the AEHR strangle priced on this page is roughly $69.55 and $130.45 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 AEHR market-implied 1-standard-deviation expected move is approximately 39.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on AEHR?: Strangles on AEHR 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 AEHR chain.
How does current AEHR implied volatility affect this strangle?: AEHR ATM IV is at 136.79% with IV rank near 64.34%, 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.