BYSI Strangle Strategy
BYSI (BeyondSpring Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
BeyondSpring Inc., a clinical stage biopharmaceutical company, together with its subsidiaries, focuses on the development of cancer therapies. The company's lead asset is the Plinabulin, a selective immune-modulating microtubule-binding agent that has completed Phase III clinical trials for the prevention of chemotherapy-induced neutropenia; and for treatment of later-stage non-small cell lung cancer. It is also developing Plinabulin in combination with various immuno-oncology agents, including nivolumab, a PD-1 antibody for the treatment of NSCLC; nivolumab and ipilimumab, a CTLA-4 antibody for the treatment of SCLC; and in combination with PD-1 or PD-L1 antibodies and radiation for the treatment of various cancers. In addition, the company engages in the development of three small molecule immune agents in preclinical stages; and a drug development platform. The company was founded in 2010 and is headquartered in New York, New York.
BYSI (BeyondSpring Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $59.6M, a beta of 0.41 versus the broader market, a 52-week range of 1.21-3.44, average daily share volume of 17K, a public-listing history dating back to 2017, approximately 40 full-time employees. These structural characteristics shape how BYSI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.41 indicates BYSI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a strangle on BYSI?
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 BYSI snapshot
As of May 15, 2026, spot at $1.38, ATM IV 20.40%, IV rank 0.00%, expected move 5.85%. The strangle on BYSI 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 34-day expiry.
Why this strangle structure on BYSI specifically: BYSI IV at 20.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a BYSI strangle, with a market-implied 1-standard-deviation move of approximately 5.85% (roughly $0.08 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BYSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BYSI should anchor to the underlying notional of $1.38 per share and to the trader's directional view on BYSI stock.
BYSI strangle setup
The BYSI 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 BYSI near $1.38, the first option leg uses a $1.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BYSI chain at a 34-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 BYSI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.45 | N/A |
| Buy 1 | Put | $1.31 | N/A |
BYSI strangle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
BYSI strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on BYSI. 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.
When traders use strangle on BYSI
Strangles on BYSI 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 BYSI chain.
BYSI thesis for this strangle
The market-implied 1-standard-deviation range for BYSI extends from approximately $1.30 on the downside to $1.46 on the upside. A BYSI 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 BYSI IV rank near 0.00% 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 BYSI at 20.40%. As a Healthcare name, BYSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BYSI-specific events.
BYSI 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. BYSI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BYSI alongside the broader basket even when BYSI-specific fundamentals are unchanged. Always rebuild the position from current BYSI chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on BYSI?
- A strangle on BYSI is the strangle strategy applied to BYSI (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 BYSI stock trading near $1.38, the strikes shown on this page are snapped to the nearest listed BYSI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BYSI 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 BYSI strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 20.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BYSI strangle?
- The breakeven for the BYSI strangle priced on this page is no defined breakeven on the modeled curve 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 BYSI market-implied 1-standard-deviation expected move is approximately 5.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on BYSI?
- Strangles on BYSI 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 BYSI chain.
- How does current BYSI implied volatility affect this strangle?
- BYSI ATM IV is at 20.40% with IV rank near 0.00%, 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.