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 157.62%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$3,005.00 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 $59.95 and $130.05 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 AEHR market-implied 1-standard-deviation expected move is approximately 45.19%; 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 157.62% with IV rank near 81.16%, 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.

AEHR Strangle Strategy

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

Aehr Test Systems, founded in 1977 and based in Fremont, California, specializes in the global provision of advanced burn-in and test systems for integrated circuits, encompassing logic, optical, and memory devices. Its extensive product lineup includes the ABTS and FOX-P families of test and burn-in solutions, complemented by specialized components such as the FOX WaferPak Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier, and FOX DiePak Loader. The ABTS system is specifically designed for both production and qualification assessments of packaged parts, covering a range of lower and higher power logic devices, as well as various memory types. For more complex integrated circuits like memories, digital signal processors, microprocessors, microcontrollers, systems-on-a-chip, and integrated optical devices, the FOX-XP and FOX-NP systems facilitate burn-in and functional testing at both the wafer and individual die/module levels. Aehr's FOX-CP system offers a compact, single-wafer solution for verifying the reliability of logic, memory, and photonic devices. A distinguishing offering, the WaferPak Contactor, features an exclusive full-wafer probe card, accommodating wafers up to 300mm, which enables semiconductor manufacturers to conduct comprehensive wafer-level testing and burn-in on Aehr's FOX platforms.

AEHR (Aehr Test Systems) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $2.89B, a beta of 3.18 versus the broader market, a 52-week range of 12.19-126.62, 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 3.18 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 June 29, 2026, spot at $95.12, ATM IV 157.62%, IV rank 81.16%, expected move 45.19%. 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 32-day expiry.

Why this strangle structure on AEHR specifically: AEHR IV at 157.62% is rich versus its 1-year range, which makes a premium-buying AEHR strangle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 45.19% (roughly $42.98 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 AEHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AEHR should anchor to the underlying notional of $95.12 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 $95.12, the first option leg uses a $100.00 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 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 AEHR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$100.00	$15.20
Buy 1	Put	$90.00	$14.85

AEHR strangle risk and reward

Net Premium / Debit: -$3,005.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$3,005.00
Breakeven(s): $59.95, $130.05
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.

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.

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	-100.0%	+$5,994.00
$21.04	-77.9%	+$3,890.95
$42.07	-55.8%	+$1,787.91
$63.10	-33.7%	-$315.14
$84.13	-11.6%	-$2,418.18
$105.16	+10.6%	-$2,488.77
$126.19	+32.7%	-$385.73
$147.22	+54.8%	+$1,717.32
$168.25	+76.9%	+$3,820.36
$189.28	+99.0%	+$5,923.41

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 $52.14 on the downside to $138.10 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 81.16% 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 AEHR at 157.62%. 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 $95.12, 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 157.62%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$3,005.00 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 $59.95 and $130.05 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 AEHR market-implied 1-standard-deviation expected move is approximately 45.19%; 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 157.62% with IV rank near 81.16%, 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.