How are BILL 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 BILL strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 64.65%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$377.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BILL strangle?

The breakeven for the BILL strangle priced on this page is roughly $30.23 and $41.78 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 BILL market-implied 1-standard-deviation expected move is approximately 18.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BILL implied volatility affect this strangle?

BILL ATM IV is at 64.65% with IV rank near 47.77%, 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.

BILL Strangle Strategy

BILL (Bill.com Holdings, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.

Bill.com Holdings, Inc. offers a powerful cloud-based platform designed to streamline, digitize, and automate the core financial operations for small and medium-sized businesses worldwide. Through its software-as-a-service (SaaS) model, the company provides sophisticated cloud payment solutions and spend management tools. These offerings empower businesses to fully automate both accounts payable and accounts receivable processes, foster seamless connections with their suppliers and clients, abolish traditional expense reports, optimize cash flow, and significantly enhance overall office efficiency. Beyond its core products, Bill.com also furnishes comprehensive support services, covering initial implementation assistance, ongoing technical help, and educational training. Its diverse client base encompasses accounting firms, financial service organizations, and various software enterprises. Established in 2006, Bill.com Holdings, Inc. maintains its corporate headquarters in San Jose, California.

BILL (Bill.com Holdings, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.54B, a beta of 1.18 versus the broader market, a 52-week range of 31.41-57.21, average daily share volume of 2.5M, a public-listing history dating back to 2019, approximately 2K full-time employees. These structural characteristics shape how BILL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places BILL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a strangle on BILL?

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 BILL snapshot

As of June 29, 2026, spot at $35.88, ATM IV 64.65%, IV rank 47.77%, expected move 18.53%. The strangle on BILL 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 32-day expiry.

Why this strangle structure on BILL specifically: BILL IV at 64.65% 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 18.53% (roughly $6.65 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BILL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BILL should anchor to the underlying notional of $35.88 per share and to the trader's directional view on BILL stock.

BILL strangle setup

The BILL 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 BILL near $35.88, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BILL chain at a 32-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 BILL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$38.00	$2.13
Buy 1	Put	$34.00	$1.65

BILL strangle risk and reward

Net Premium / Debit: -$377.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$377.50
Breakeven(s): $30.23, $41.78
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.

BILL strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on BILL. 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%	+$3,021.50
$7.94	-77.9%	+$2,228.28
$15.87	-55.8%	+$1,435.07
$23.81	-33.6%	+$641.85
$31.74	-11.5%	-$151.36
$39.67	+10.6%	-$210.42
$47.60	+32.7%	+$582.80
$55.54	+54.8%	+$1,376.01
$63.47	+76.9%	+$2,169.23
$71.40	+99.0%	+$2,962.44

When traders use strangle on BILL

Strangles on BILL 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 BILL chain.

BILL thesis for this strangle

The market-implied 1-standard-deviation range for BILL extends from approximately $29.23 on the downside to $42.53 on the upside. A BILL 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 BILL IV rank near 47.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on BILL should anchor more to the directional view and the expected-move geometry. As a Technology name, BILL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BILL-specific events.

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

Frequently asked questions

What is a strangle on BILL?: A strangle on BILL is the strangle strategy applied to BILL (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 BILL stock trading near $35.88, the strikes shown on this page are snapped to the nearest listed BILL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BILL 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 BILL strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 64.65%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$377.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BILL strangle?: The breakeven for the BILL strangle priced on this page is roughly $30.23 and $41.78 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 BILL market-implied 1-standard-deviation expected move is approximately 18.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on BILL?: Strangles on BILL 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 BILL chain.
How does current BILL implied volatility affect this strangle?: BILL ATM IV is at 64.65% with IV rank near 47.77%, 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.