CAPL Strangle Strategy
CAPL (CrossAmerica Partners LP), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.
CrossAmerica Partners LP engages in the wholesale distribution of motor fuels, operation of convenience stores, and ownership and leasing of real estate used in the retail distribution of motor fuels in the United States. It operates in two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of motor fuels to lessee dealers, independent dealers, commission agents, and company operated retail sites. The Retail segment is involved in the sale of convenience merchandise items; and retail sale of motor fuels at company operated retail sites and retail sites operated by commission agents. As of December 31, 2021, the company distributed motor fuel on a wholesale basis to approximately 1,750 sites located in 34 states; and owned or leased approximately 1,150 sites. CrossAmerica GP LLC operates as the general partner of the company.
CAPL (CrossAmerica Partners LP) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $865.0M, a trailing P/E of 15.20, a beta of 0.27 versus the broader market, a 52-week range of 19.61-23.62, average daily share volume of 57K, a public-listing history dating back to 2012, approximately 179 full-time employees. These structural characteristics shape how CAPL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.27 indicates CAPL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CAPL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on CAPL?
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 CAPL snapshot
As of May 15, 2026, spot at $23.01, ATM IV 47.10%, IV rank 12.69%, expected move 13.50%. The strangle on CAPL 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 CAPL specifically: CAPL IV at 47.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a CAPL strangle, with a market-implied 1-standard-deviation move of approximately 13.50% (roughly $3.11 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 CAPL expiries trade a higher absolute premium for lower per-day decay. Position sizing on CAPL should anchor to the underlying notional of $23.01 per share and to the trader's directional view on CAPL stock.
CAPL strangle setup
The CAPL 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 CAPL near $23.01, the first option leg uses a $24.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CAPL 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 CAPL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.16 | N/A |
| Buy 1 | Put | $21.86 | N/A |
CAPL 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.
CAPL strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on CAPL. 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 CAPL
Strangles on CAPL 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 CAPL chain.
CAPL thesis for this strangle
The market-implied 1-standard-deviation range for CAPL extends from approximately $19.90 on the downside to $26.12 on the upside. A CAPL 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 CAPL IV rank near 12.69% 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 CAPL at 47.10%. As a Energy name, CAPL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CAPL-specific events.
CAPL 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. CAPL positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CAPL alongside the broader basket even when CAPL-specific fundamentals are unchanged. Always rebuild the position from current CAPL chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on CAPL?
- A strangle on CAPL is the strangle strategy applied to CAPL (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 CAPL stock trading near $23.01, the strikes shown on this page are snapped to the nearest listed CAPL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CAPL 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 CAPL strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 47.10%), 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 CAPL strangle?
- The breakeven for the CAPL 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 CAPL market-implied 1-standard-deviation expected move is approximately 13.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on CAPL?
- Strangles on CAPL 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 CAPL chain.
- How does current CAPL implied volatility affect this strangle?
- CAPL ATM IV is at 47.10% with IV rank near 12.69%, 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.