How are BJRI 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 BJRI strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$490.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BJRI strangle?

The breakeven for the BJRI strangle priced on this page is roughly $60.10 and $74.90 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BJRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BJRI implied volatility affect this strangle?

BJRI ATM IV is at 44.70% with IV rank near 26.37%, 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.

BJRI Strangle Strategy

BJRI (BJ's Restaurants, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.

BJ's Restaurants, Inc. manages a network of casual dining establishments situated throughout the United States. Patrons can enjoy a diverse menu at these eateries, encompassing pizzas, a variety of beers (including craft selections), appetizers, main courses, pasta dishes, sandwiches, signature salads, and decadent desserts. As of April 19, 2022, the corporation had a footprint of 213 restaurants, operating across 29 states. This company was founded in 1978 and is headquartered in Huntington Beach, California.

BJRI (BJ's Restaurants, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $1.46B, a trailing P/E of 35.94, a beta of 1.32 versus the broader market, a 52-week range of 28.46-74.6, average daily share volume of 447K, a public-listing history dating back to 1996, approximately 22K full-time employees. These structural characteristics shape how BJRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.32 indicates BJRI 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 35.94 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. BJRI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on BJRI?

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.

BJRI snapshot

As of August 14, 2026, spot at $67.83, ATM IV 44.70%, IV rank 26.37%, expected move 12.82%. The strangle on BJRI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this strangle structure on BJRI specifically: BJRI IV at 44.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a BJRI strangle, with a market-implied 1-standard-deviation move of approximately 12.82% (roughly $8.69 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BJRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BJRI should anchor to the underlying notional of $67.83 per share and to the trader's directional view on BJRI stock.

BJRI strangle setup

The BJRI strangle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BJRI at $67.83 on that close, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BJRI chain at a 35-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 BJRI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$70.00	$2.15
Buy 1	Put	$65.00	$2.75

BJRI strangle risk and reward

Net Premium / Debit: -$490.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$490.00
Breakeven(s): $60.10, $74.90
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.

BJRI strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on BJRI. 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%	+$6,009.00
$15.01	-77.9%	+$4,509.35
$30.00	-55.8%	+$3,009.70
$45.00	-33.7%	+$1,510.06
$60.00	-11.5%	+$10.41
$74.99	+10.6%	+$9.24
$89.99	+32.7%	+$1,508.89
$104.99	+54.8%	+$3,008.54
$119.98	+76.9%	+$4,508.19
$134.98	+99.0%	+$6,007.83

When traders use strangle on BJRI

Strangles on BJRI 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 BJRI chain.

BJRI thesis for this strangle

The market-implied 1-standard-deviation range for BJRI extends from approximately $59.14 on the downside to $76.52 on the upside. A BJRI 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 BJRI IV rank near 26.37% 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 BJRI at 44.70%. As a Consumer Cyclical name, BJRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BJRI-specific events.

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

Frequently asked questions

What is a strangle on BJRI?: A strangle on BJRI is the strangle strategy applied to BJRI (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 BJRI stock at $67.83 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BJRI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BJRI 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 BJRI strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$490.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BJRI strangle?: The breakeven for the BJRI strangle priced on this page is roughly $60.10 and $74.90 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BJRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on BJRI?: Strangles on BJRI 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 BJRI chain.
How does current BJRI implied volatility affect this strangle?: BJRI ATM IV is at 44.70% with IV rank near 26.37%, 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.