How are AXS 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 AXS strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 340.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$379.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AXS strangle?

The breakeven for the AXS strangle priced on this page is roughly $101.21 and $118.79 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 AXS market-implied 1-standard-deviation expected move is approximately 97.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AXS implied volatility affect this strangle?

AXS ATM IV is at 340.80% with IV rank near 67.42%, 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.

AXS Strangle Strategy

AXS (AXIS Capital Holdings Limited), in the Financial Services sector, (Insurance - Diversified industry), listed on NYSE.

AXIS Capital Holdings Ltd. engages in the provision of various insurance and reinsurance products and services. It operates through the Insurance and Reinsurance segments. The Insurance segment offers property, marine, terrorism, aviation, political risk, professional lines, liability, accident, and health insurance products. The Reinsurance segment offers non-life treaty reinsurance to insurance companies. The company was founded on December 9, 2002, and is headquartered in Pembroke, Bermuda.

AXS (AXIS Capital Holdings Limited) trades in the Financial Services sector, specifically Insurance - Diversified, with a market capitalization of approximately $8.02B, a trailing P/E of 7.53, a beta of 0.52 versus the broader market, a 52-week range of 88.07-110.34, average daily share volume of 628K, a public-listing history dating back to 2003, approximately 2K full-time employees. These structural characteristics shape how AXS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.52 indicates AXS 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 7.53 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AXS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on AXS?

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 AXS snapshot

As of June 30, 2026, spot at $108.22, ATM IV 340.80%, IV rank 67.42%, expected move 97.70%. The strangle on AXS 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 52-day expiry.

Why this strangle structure on AXS specifically: AXS IV at 340.80% 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 97.70% (roughly $105.74 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AXS expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXS should anchor to the underlying notional of $108.22 per share and to the trader's directional view on AXS stock.

AXS strangle setup

The AXS 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 AXS near $108.22, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AXS chain at a 52-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 AXS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$115.00	$1.59
Buy 1	Put	$105.00	$2.20

AXS strangle risk and reward

Net Premium / Debit: -$379.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$379.00
Breakeven(s): $101.21, $118.79
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.

AXS strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on AXS. 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%	+$10,120.00
$23.94	-77.9%	+$7,727.31
$47.86	-55.8%	+$5,334.61
$71.79	-33.7%	+$2,941.92
$95.72	-11.6%	+$549.23
$119.64	+10.6%	+$85.47
$143.57	+32.7%	+$2,478.16
$167.50	+54.8%	+$4,870.85
$191.43	+76.9%	+$7,263.55
$215.35	+99.0%	+$9,656.24

When traders use strangle on AXS

Strangles on AXS 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 AXS chain.

AXS thesis for this strangle

The market-implied 1-standard-deviation range for AXS extends from approximately $2.48 on the downside to $213.96 on the upside. A AXS 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 AXS IV rank near 67.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on AXS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AXS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXS-specific events.

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

Frequently asked questions

What is a strangle on AXS?: A strangle on AXS is the strangle strategy applied to AXS (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 AXS stock trading near $108.22, the strikes shown on this page are snapped to the nearest listed AXS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AXS 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 AXS strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 340.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$379.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AXS strangle?: The breakeven for the AXS strangle priced on this page is roughly $101.21 and $118.79 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 AXS market-implied 1-standard-deviation expected move is approximately 97.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on AXS?: Strangles on AXS 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 AXS chain.
How does current AXS implied volatility affect this strangle?: AXS ATM IV is at 340.80% with IV rank near 67.42%, 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.