AGL Strangle Strategy
AGL (Agilon Health, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
agilon health, inc. offers healthcare services for seniors through primary care physicians in the communities of the United States. As of December 31, 2021, it served approximately 238,000 senior members, which included 186,300 medicare advantage members and 51,700 medicare fee-for-service beneficiaries. The company was formerly known as Agilon Health Topco, Inc. and changed its name to agilon health, inc. in March 2021. agilon health, inc. was founded in 2016 and is based in Austin, Texas.
AGL (Agilon Health, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.20B, a beta of 2.31 versus the broader market, a 52-week range of 7.48-74.69, average daily share volume of 391K, a public-listing history dating back to 2021, approximately 1K full-time employees. These structural characteristics shape how AGL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.31 indicates AGL 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 AGL?
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 AGL snapshot
As of May 15, 2026, spot at $83.70, ATM IV 103.50%, IV rank 19.18%, expected move 29.67%. The strangle on AGL 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 AGL specifically: AGL IV at 103.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a AGL strangle, with a market-implied 1-standard-deviation move of approximately 29.67% (roughly $24.84 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 AGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGL should anchor to the underlying notional of $83.70 per share and to the trader's directional view on AGL stock.
AGL strangle setup
The AGL 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 AGL near $83.70, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGL 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 AGL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $90.00 | $7.95 |
| Buy 1 | Put | $80.00 | $8.70 |
AGL strangle risk and reward
- Net Premium / Debit
- -$1,665.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,665.00
- Breakeven(s)
- $63.35, $106.65
- 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.
AGL strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on AGL. 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% | +$6,334.00 |
| $18.52 | -77.9% | +$4,483.46 |
| $37.02 | -55.8% | +$2,632.91 |
| $55.53 | -33.7% | +$782.37 |
| $74.03 | -11.6% | -$1,068.17 |
| $92.54 | +10.6% | -$1,411.29 |
| $111.04 | +32.7% | +$439.26 |
| $129.55 | +54.8% | +$2,289.80 |
| $148.05 | +76.9% | +$4,140.34 |
| $166.56 | +99.0% | +$5,990.88 |
When traders use strangle on AGL
Strangles on AGL 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 AGL chain.
AGL thesis for this strangle
The market-implied 1-standard-deviation range for AGL extends from approximately $58.86 on the downside to $108.54 on the upside. A AGL 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 AGL IV rank near 19.18% 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 AGL at 103.50%. As a Healthcare name, AGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGL-specific events.
AGL 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. AGL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGL alongside the broader basket even when AGL-specific fundamentals are unchanged. Always rebuild the position from current AGL chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on AGL?
- A strangle on AGL is the strangle strategy applied to AGL (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 AGL stock trading near $83.70, the strikes shown on this page are snapped to the nearest listed AGL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGL 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 AGL strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 103.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,665.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGL strangle?
- The breakeven for the AGL strangle priced on this page is roughly $63.35 and $106.65 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 AGL market-implied 1-standard-deviation expected move is approximately 29.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on AGL?
- Strangles on AGL 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 AGL chain.
- How does current AGL implied volatility affect this strangle?
- AGL ATM IV is at 103.50% with IV rank near 19.18%, 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.