CACI Strangle Strategy
CACI (CACI International Inc), in the Technology sector, (Information Technology Services industry), listed on NYSE.
CACI International Inc, alongside its subsidiaries, is a provider of specialized expertise and advanced technology. The company primarily serves enterprise and mission-critical customers by supporting vital national security objectives and facilitating government modernization and transformation efforts across the intelligence, defense, and federal civilian sectors. The company operates through two main divisions: Domestic Operations and International Operations. The Domestic Operations segment focuses on delivering information solutions and services to U.S. federal government agencies and commercial entities. This includes areas such as digital transformation, Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR), cybersecurity and space technologies, engineering services, enterprise IT management, and mission support. Internationally, CACI offers a suite of IT services, proprietary data, and software products to both commercial and government clients throughout the United Kingdom, mainland Europe, and other global locations.
CACI (CACI International Inc) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $10.03B, a trailing P/E of 18.65, a beta of 0.52 versus the broader market, a 52-week range of 434.7-683.5, average daily share volume of 300K, a public-listing history dating back to 1980, approximately 25K full-time employees. These structural characteristics shape how CACI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.52 indicates CACI 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 CACI?
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 CACI snapshot
As of June 29, 2026, spot at $458.06, ATM IV 40.00%, IV rank 44.77%, expected move 11.47%. The strangle on CACI 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 18-day expiry.
Why this strangle structure on CACI specifically: CACI IV at 40.00% 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 11.47% (roughly $52.53 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CACI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CACI should anchor to the underlying notional of $458.06 per share and to the trader's directional view on CACI stock.
CACI strangle setup
The CACI 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 CACI near $458.06, the first option leg uses a $480.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CACI chain at a 18-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 CACI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $480.00 | $7.65 |
| Buy 1 | Put | $440.00 | $10.20 |
CACI strangle risk and reward
- Net Premium / Debit
- -$1,785.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,785.00
- Breakeven(s)
- $422.15, $497.85
- 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.
CACI strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on CACI. 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% | +$42,214.00 |
| $101.29 | -77.9% | +$32,086.15 |
| $202.57 | -55.8% | +$21,958.30 |
| $303.85 | -33.7% | +$11,830.45 |
| $405.12 | -11.6% | +$1,702.60 |
| $506.40 | +10.6% | +$855.25 |
| $607.68 | +32.7% | +$10,983.10 |
| $708.96 | +54.8% | +$21,110.94 |
| $810.24 | +76.9% | +$31,238.79 |
| $911.52 | +99.0% | +$41,366.64 |
When traders use strangle on CACI
Strangles on CACI 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 CACI chain.
CACI thesis for this strangle
The market-implied 1-standard-deviation range for CACI extends from approximately $405.53 on the downside to $510.59 on the upside. A CACI 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 CACI IV rank near 44.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CACI should anchor more to the directional view and the expected-move geometry. As a Technology name, CACI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CACI-specific events.
CACI 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. CACI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CACI alongside the broader basket even when CACI-specific fundamentals are unchanged. Always rebuild the position from current CACI chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on CACI?
- A strangle on CACI is the strangle strategy applied to CACI (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 CACI stock trading near $458.06, the strikes shown on this page are snapped to the nearest listed CACI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CACI 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 CACI strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 40.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,785.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CACI strangle?
- The breakeven for the CACI strangle priced on this page is roughly $422.15 and $497.85 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 CACI market-implied 1-standard-deviation expected move is approximately 11.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on CACI?
- Strangles on CACI 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 CACI chain.
- How does current CACI implied volatility affect this strangle?
- CACI ATM IV is at 40.00% with IV rank near 44.77%, 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.