How are AU 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 AU strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 52.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$387.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AU strangle?

The breakeven for the AU strangle priced on this page is roughly $71.13 and $88.88 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 AU market-implied 1-standard-deviation expected move is approximately 15.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AU implied volatility affect this strangle?

AU ATM IV is at 52.50% with IV rank near 34.77%, 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.

AU Strangle Strategy

AU (AngloGold Ashanti plc), in the Basic Materials sector, (Gold industry), listed on NYSE.

AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. It explores for gold, as well as by-products, including silver and sulphuric acid. The company’s flagship property includes 100% owned the Geita mine located in the Lake Victoria goldfields of the Geita region in northwestern Tanzania. AngloGold Ashanti plc was incorporated in 1944 and is headquartered in Greenwood Village, Colorado.

AU (AngloGold Ashanti plc) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $41.26B, a trailing P/E of 11.86, a beta of 0.64 versus the broader market, a 52-week range of 43.44-129.14, average daily share volume of 2.8M, a public-listing history dating back to 1998, approximately 38K full-time employees. These structural characteristics shape how AU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.64 indicates AU has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.86 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on AU?

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 AU snapshot

As of June 29, 2026, spot at $81.43, ATM IV 52.50%, IV rank 34.77%, expected move 15.05%. The strangle on AU 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 18-day expiry.

Why this strangle structure on AU specifically: AU IV at 52.50% 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 15.05% (roughly $12.26 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AU expiries trade a higher absolute premium for lower per-day decay. Position sizing on AU should anchor to the underlying notional of $81.43 per share and to the trader's directional view on AU stock.

AU strangle setup

The AU 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 AU near $81.43, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AU chain at a 18-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 AU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.00	$2.45
Buy 1	Put	$75.00	$1.43

AU strangle risk and reward

Net Premium / Debit: -$387.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$387.50
Breakeven(s): $71.13, $88.88
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.

AU strangle payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$7,111.50
$18.01	-77.9%	+$5,311.15
$36.02	-55.8%	+$3,510.80
$54.02	-33.7%	+$1,710.44
$72.02	-11.6%	-$89.91
$90.03	+10.6%	+$115.26
$108.03	+32.7%	+$1,915.61
$126.03	+54.8%	+$3,715.96
$144.04	+76.9%	+$5,516.31
$162.04	+99.0%	+$7,316.67

When traders use strangle on AU

Strangles on AU 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 AU chain.

AU thesis for this strangle

The market-implied 1-standard-deviation range for AU extends from approximately $69.17 on the downside to $93.69 on the upside. A AU 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 AU IV rank near 34.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on AU should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, AU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AU-specific events.

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

Frequently asked questions

What is a strangle on AU?: A strangle on AU is the strangle strategy applied to AU (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 AU stock trading near $81.43, the strikes shown on this page are snapped to the nearest listed AU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AU 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 AU strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 52.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$387.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AU strangle?: The breakeven for the AU strangle priced on this page is roughly $71.13 and $88.88 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 AU market-implied 1-standard-deviation expected move is approximately 15.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on AU?: Strangles on AU 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 AU chain.
How does current AU implied volatility affect this strangle?: AU ATM IV is at 52.50% with IV rank near 34.77%, 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.