How are AUR 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 AUR strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 74.51%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$92.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AUR strangle?

The breakeven for the AUR strangle priced on this page is roughly $5.58 and $7.93 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 AUR market-implied 1-standard-deviation expected move is approximately 21.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AUR implied volatility affect this strangle?

AUR ATM IV is at 74.51% with IV rank near 33.90%, 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.

AUR Strangle Strategy

AUR (Aurora Innovation, Inc.), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.

Aurora Innovation, Inc. is a U.S.-based company specializing in autonomous driving technology. Its primary focus involves creating the Aurora Driver, an advanced platform that integrates various self-driving hardware components, software systems, and data services. This comprehensive solution is engineered to enable and unify autonomous capabilities across diverse vehicle types, including passenger automobiles, light commercial vans, and heavy-duty trucks. The company was founded in 2017 and maintains its headquarters in Pittsburgh, Pennsylvania.

AUR (Aurora Innovation, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $12.47B, a beta of 2.63 versus the broader market, a 52-week range of 3.6-8.565, average daily share volume of 28.0M, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how AUR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.63 indicates AUR 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 AUR?

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 AUR snapshot

As of June 30, 2026, spot at $6.79, ATM IV 74.51%, IV rank 33.90%, expected move 21.36%. The strangle on AUR 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 31-day expiry.

Why this strangle structure on AUR specifically: AUR IV at 74.51% 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 21.36% (roughly $1.45 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AUR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUR should anchor to the underlying notional of $6.79 per share and to the trader's directional view on AUR stock.

AUR strangle setup

The AUR 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 AUR near $6.79, the first option leg uses a $7.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUR chain at a 31-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 AUR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$7.00	$0.53
Buy 1	Put	$6.50	$0.40

AUR strangle risk and reward

Net Premium / Debit: -$92.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$92.50
Breakeven(s): $5.58, $7.93
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.

AUR strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on AUR. 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	-99.9%	+$556.50
$1.51	-77.8%	+$406.48
$3.01	-55.7%	+$256.46
$4.51	-33.6%	+$106.44
$6.01	-11.5%	-$43.58
$7.51	+10.6%	-$41.40
$9.01	+32.7%	+$108.62
$10.51	+54.8%	+$258.64
$12.01	+76.9%	+$408.66
$13.51	+99.0%	+$558.68

When traders use strangle on AUR

Strangles on AUR 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 AUR chain.

AUR thesis for this strangle

The market-implied 1-standard-deviation range for AUR extends from approximately $5.34 on the downside to $8.24 on the upside. A AUR 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 AUR IV rank near 33.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on AUR should anchor more to the directional view and the expected-move geometry. As a Technology name, AUR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUR-specific events.

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

Frequently asked questions

What is a strangle on AUR?: A strangle on AUR is the strangle strategy applied to AUR (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 AUR stock trading near $6.79, the strikes shown on this page are snapped to the nearest listed AUR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AUR 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 AUR strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 74.51%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$92.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AUR strangle?: The breakeven for the AUR strangle priced on this page is roughly $5.58 and $7.93 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 AUR market-implied 1-standard-deviation expected move is approximately 21.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on AUR?: Strangles on AUR 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 AUR chain.
How does current AUR implied volatility affect this strangle?: AUR ATM IV is at 74.51% with IV rank near 33.90%, 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.