How are AX 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 AX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 34.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$617.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AX strangle?

The breakeven for the AX strangle priced on this page is roughly $73.83 and $93.68 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 AX market-implied 1-standard-deviation expected move is approximately 9.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AX implied volatility affect this strangle?

AX ATM IV is at 34.20% with IV rank near 27.44%, 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.

AX Strangle Strategy

AX (Axos Financial, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through Banking Business and Securities Business segments. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate term unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text messaging banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers.

AX (Axos Financial, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $4.71B, a trailing P/E of 9.84, a beta of 1.30 versus the broader market, a 52-week range of 67.5-101.92, average daily share volume of 414K, a public-listing history dating back to 2005, approximately 2K full-time employees. These structural characteristics shape how AX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.30 indicates AX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 9.84 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a strangle on AX?

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 AX snapshot

As of May 15, 2026, spot at $83.08, ATM IV 34.20%, IV rank 27.44%, expected move 9.80%. The strangle on AX 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 AX specifically: AX IV at 34.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a AX strangle, with a market-implied 1-standard-deviation move of approximately 9.80% (roughly $8.15 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 AX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AX should anchor to the underlying notional of $83.08 per share and to the trader's directional view on AX stock.

AX strangle setup

The AX 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 AX near $83.08, the first option leg uses a $87.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AX 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 AX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$87.50	$2.93
Buy 1	Put	$80.00	$3.25

AX strangle risk and reward

Net Premium / Debit: -$617.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$617.50
Breakeven(s): $73.83, $93.68
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.

AX strangle payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$7,381.50
$18.38	-77.9%	+$5,544.67
$36.75	-55.8%	+$3,707.83
$55.12	-33.7%	+$1,871.00
$73.48	-11.6%	+$34.16
$91.85	+10.6%	-$182.33
$110.22	+32.7%	+$1,654.51
$128.59	+54.8%	+$3,491.34
$146.96	+76.9%	+$5,328.17
$165.33	+99.0%	+$7,165.01

When traders use strangle on AX

Strangles on AX 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 AX chain.

AX thesis for this strangle

The market-implied 1-standard-deviation range for AX extends from approximately $74.93 on the downside to $91.23 on the upside. A AX 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 AX IV rank near 27.44% 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 AX at 34.20%. As a Financial Services name, AX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AX-specific events.

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

Frequently asked questions

What is a strangle on AX?: A strangle on AX is the strangle strategy applied to AX (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 AX stock trading near $83.08, the strikes shown on this page are snapped to the nearest listed AX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AX 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 AX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 34.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$617.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AX strangle?: The breakeven for the AX strangle priced on this page is roughly $73.83 and $93.68 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 AX market-implied 1-standard-deviation expected move is approximately 9.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on AX?: Strangles on AX 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 AX chain.
How does current AX implied volatility affect this strangle?: AX ATM IV is at 34.20% with IV rank near 27.44%, 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.