ANNX Strangle Strategy
ANNX (Annexon, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Annexon, Inc., a clinical-stage biopharmaceutical company, discovers and develops therapeutics for autoimmune, neurodegenerative, and ophthalmic disorders. The company's C1q is an initiating molecule of the classical complement pathway that targets distinct disease processes, such as antibody-mediated autoimmune disease and complement-mediated neurodegeneration. Its product candidates include ANX005, a monoclonal antibody, which is in Phase II/III clinical trials to treat patients with guillain- barré syndrome; Phase II trial in patients with warm autoimmune hemolytic anemia; and Phase II clinical trial for Huntington's disease and amyotrophic lateral sclerosis. The company is also developing ANX009 that is in Phase Ib trial in patients with lupus nephritis; and ANX007, which is in Phase II clinical trials to treat patients with geographic atrophy. In addition, it develops ANX105, an investigational monoclonal antibody targeting neurodegenerative indications; and ANX1502, an investigational oral small molecule for the treatment of certain autoimmune indications. The company was incorporated in 2011 and is headquartered in Brisbane, California.
ANNX (Annexon, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $651.8M, a beta of 1.22 versus the broader market, a 52-week range of 1.7-7.18, average daily share volume of 2.6M, a public-listing history dating back to 2020, approximately 106 full-time employees. These structural characteristics shape how ANNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places ANNX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a strangle on ANNX?
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 ANNX snapshot
As of May 15, 2026, spot at $5.21, ATM IV 109.90%, IV rank 31.09%, expected move 31.51%. The strangle on ANNX 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 ANNX specifically: ANNX IV at 109.90% 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 31.51% (roughly $1.64 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 ANNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on ANNX should anchor to the underlying notional of $5.21 per share and to the trader's directional view on ANNX stock.
ANNX strangle setup
The ANNX 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 ANNX near $5.21, the first option leg uses a $5.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ANNX 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 ANNX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.47 | N/A |
| Buy 1 | Put | $4.95 | N/A |
ANNX strangle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
ANNX strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on ANNX. 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.
When traders use strangle on ANNX
Strangles on ANNX 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 ANNX chain.
ANNX thesis for this strangle
The market-implied 1-standard-deviation range for ANNX extends from approximately $3.57 on the downside to $6.85 on the upside. A ANNX 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 ANNX IV rank near 31.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on ANNX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ANNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ANNX-specific events.
ANNX 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. ANNX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ANNX alongside the broader basket even when ANNX-specific fundamentals are unchanged. Always rebuild the position from current ANNX chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on ANNX?
- A strangle on ANNX is the strangle strategy applied to ANNX (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 ANNX stock trading near $5.21, the strikes shown on this page are snapped to the nearest listed ANNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ANNX 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 ANNX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 109.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ANNX strangle?
- The breakeven for the ANNX strangle priced on this page is no defined breakeven on the modeled curve 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 ANNX market-implied 1-standard-deviation expected move is approximately 31.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on ANNX?
- Strangles on ANNX 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 ANNX chain.
- How does current ANNX implied volatility affect this strangle?
- ANNX ATM IV is at 109.90% with IV rank near 31.09%, 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.