ARVN Strangle Strategy
ARVN (Arvinas, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Arvinas, Inc., a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of therapies to degrade disease-causing proteins. Its lead product candidates include Bavdegalutamide, a proteolysis targeting chimera (PROTAC) protein degrader that is in phase I clinical trial targeting the androgen receptor (AR) protein for the treatment of men with metastatic castration-resistant prostate cancer (mCRPC); ARV-471, a PROTAC protein degrader targeting the estrogen receptor protein for the treatment of patients with metastatic ER positive/HER2 negative breast cancer; and ARV-766 an investigational orally bioavailable PROTAC protein degrader for the treatment of men with mCRPC. The company has collaborations with Pfizer Inc., Genentech, Inc., F. Hoffman-La Roche Ltd., and Bayer AG. Arvinas, Inc. was founded in 2013 and is based in New Haven, Connecticut.
ARVN (Arvinas, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $636.8M, a beta of 1.80 versus the broader market, a 52-week range of 5.9-14.51, average daily share volume of 901K, a public-listing history dating back to 2018, approximately 430 full-time employees. These structural characteristics shape how ARVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.80 indicates ARVN 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 ARVN?
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 ARVN snapshot
As of May 15, 2026, spot at $9.07, ATM IV 66.50%, IV rank 25.93%, expected move 19.06%. The strangle on ARVN 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 63-day expiry.
Why this strangle structure on ARVN specifically: ARVN IV at 66.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a ARVN strangle, with a market-implied 1-standard-deviation move of approximately 19.06% (roughly $1.73 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ARVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARVN should anchor to the underlying notional of $9.07 per share and to the trader's directional view on ARVN stock.
ARVN strangle setup
The ARVN 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 ARVN near $9.07, the first option leg uses a $9.52 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARVN chain at a 63-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 ARVN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.52 | N/A |
| Buy 1 | Put | $8.62 | N/A |
ARVN 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.
ARVN strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on ARVN. 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 ARVN
Strangles on ARVN 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 ARVN chain.
ARVN thesis for this strangle
The market-implied 1-standard-deviation range for ARVN extends from approximately $7.34 on the downside to $10.80 on the upside. A ARVN 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 ARVN IV rank near 25.93% 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 ARVN at 66.50%. As a Healthcare name, ARVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARVN-specific events.
ARVN 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. ARVN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ARVN alongside the broader basket even when ARVN-specific fundamentals are unchanged. Always rebuild the position from current ARVN chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on ARVN?
- A strangle on ARVN is the strangle strategy applied to ARVN (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 ARVN stock trading near $9.07, the strikes shown on this page are snapped to the nearest listed ARVN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ARVN 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 ARVN strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 66.50%), 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 ARVN strangle?
- The breakeven for the ARVN 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 ARVN market-implied 1-standard-deviation expected move is approximately 19.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on ARVN?
- Strangles on ARVN 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 ARVN chain.
- How does current ARVN implied volatility affect this strangle?
- ARVN ATM IV is at 66.50% with IV rank near 25.93%, 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.