ARAY Strangle Strategy

ARAY (Accuray Incorporated), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

Accuray Incorporated designs, develops, manufactures, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the United States, Canada, Latin America, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, China, and rest of the Asia Pacific region. It offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain, including tumors on or near the spine and in the breast, kidney, liver, lung, pancreas, and prostate. The company also provides the TomoTherapy System, including the Radixact System, which allows for integrated radiation treatment planning, delivery, and data management, enabling clinicians to deliver ultra-precise treatments to approximately 50 patients per day; iDMS data management system, a fully integrated treatment planning and data management systems; and Accuray precision treatment planning system, a treatment planning and data management systems. In addition, it offers post-contract customer support, installation, training, and other professional services. The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States; and to customers directly and through distributors and sales agents internationally. Accuray Incorporated was incorporated in 1990 and is headquartered in Madison, Wisconsin.

ARAY (Accuray Incorporated) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $35.9M, a beta of 1.43 versus the broader market, a 52-week range of 0.28-2.1, average daily share volume of 1.4M, a public-listing history dating back to 2007, approximately 987 full-time employees. These structural characteristics shape how ARAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.43 indicates ARAY 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 ARAY?

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 ARAY snapshot

As of May 15, 2026, spot at $0.27, ATM IV 24.70%, IV rank 0.98%, expected move 7.08%. The strangle on ARAY 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 ARAY specifically: ARAY IV at 24.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a ARAY strangle, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $0.02 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 ARAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARAY should anchor to the underlying notional of $0.27 per share and to the trader's directional view on ARAY stock.

ARAY strangle setup

The ARAY 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 ARAY near $0.27, the first option leg uses a $0.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARAY 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 ARAY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$0.28	N/A
Buy 1	Put	$0.26	N/A

ARAY 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.

ARAY strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on ARAY. 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 ARAY

Strangles on ARAY 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 ARAY chain.

ARAY thesis for this strangle

The market-implied 1-standard-deviation range for ARAY extends from approximately $0.25 on the downside to $0.29 on the upside. A ARAY 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 ARAY IV rank near 0.98% 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 ARAY at 24.70%. As a Healthcare name, ARAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARAY-specific events.

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

Frequently asked questions

What is a strangle on ARAY?: A strangle on ARAY is the strangle strategy applied to ARAY (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 ARAY stock trading near $0.27, the strikes shown on this page are snapped to the nearest listed ARAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ARAY 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 ARAY strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), 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 ARAY strangle?: The breakeven for the ARAY 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 ARAY market-implied 1-standard-deviation expected move is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on ARAY?: Strangles on ARAY 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 ARAY chain.
How does current ARAY implied volatility affect this strangle?: ARAY ATM IV is at 24.70% with IV rank near 0.98%, 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.