ARIS Strangle Strategy
ARIS (Aris Mining Corporation), in the Basic Materials sector, (Other Precious Metals industry), listed on NYSE.
Aris Mining Corporation is a gold extraction firm that manages several operational mines across Colombia, specifically including Segovia, Soto Norte, Toroparu, Juby, and Marmato. The company was established in 1982 and maintains its headquarters in Vancouver, Canada.
ARIS (Aris Mining Corporation) trades in the Basic Materials sector, specifically Other Precious Metals, with a market capitalization of approximately $3.13B, a trailing P/E of 17.94, a beta of 1.92 versus the broader market, a 52-week range of 6.57-23.29, average daily share volume of 1.3M, a public-listing history dating back to 1996, approximately 4K full-time employees. These structural characteristics shape how ARIS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.92 indicates ARIS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ARIS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on ARIS?
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 ARIS snapshot
As of June 30, 2026, spot at $14.98, ATM IV 146.10%, IV rank 100.00%, expected move 41.89%. The strangle on ARIS 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 17-day expiry.
Why this strangle structure on ARIS specifically: ARIS IV at 146.10% is rich versus its 1-year range, which makes a premium-buying ARIS strangle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 41.89% (roughly $6.27 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ARIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARIS should anchor to the underlying notional of $14.98 per share and to the trader's directional view on ARIS stock.
ARIS strangle setup
The ARIS 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 ARIS near $14.98, the first option leg uses a $15.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARIS chain at a 17-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 ARIS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.73 | N/A |
| Buy 1 | Put | $14.23 | N/A |
ARIS 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.
ARIS strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on ARIS. 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 ARIS
Strangles on ARIS 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 ARIS chain.
ARIS thesis for this strangle
The market-implied 1-standard-deviation range for ARIS extends from approximately $8.71 on the downside to $21.25 on the upside. A ARIS 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 ARIS IV rank near 100.00% 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 ARIS at 146.10%. As a Basic Materials name, ARIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARIS-specific events.
ARIS 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. ARIS positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ARIS alongside the broader basket even when ARIS-specific fundamentals are unchanged. Always rebuild the position from current ARIS chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on ARIS?
- A strangle on ARIS is the strangle strategy applied to ARIS (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 ARIS stock trading near $14.98, the strikes shown on this page are snapped to the nearest listed ARIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ARIS 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 ARIS strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 146.10%), 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 ARIS strangle?
- The breakeven for the ARIS 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 ARIS market-implied 1-standard-deviation expected move is approximately 41.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on ARIS?
- Strangles on ARIS 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 ARIS chain.
- How does current ARIS implied volatility affect this strangle?
- ARIS ATM IV is at 146.10% with IV rank near 100.00%, 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.