CAPR Strangle Strategy
CAPR (Capricor Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Capricor Therapeutics, Inc. is a clinical-stage biotechnology company, which focuses on the development of transformative cell and exosome-based therapeutics for treating Duchenne muscular dystrophy (“DMD”), a rare form of muscular dystrophy which results in muscle degeneration and premature death, and other diseases with unmet medical needs. Its product candidate consists of CAP-1002, Engineered Exosomes, CAP-2003, and Exosome-Based Vaccine. The company was founded on June 17, 1996 and is headquartered in San Diego, CA.
CAPR (Capricor Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $241.0M, a beta of 0.53 versus the broader market, a 52-week range of 2.96-40.37, average daily share volume of 2.3M, a public-listing history dating back to 2007, approximately 231 full-time employees. These structural characteristics shape how CAPR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.53 indicates CAPR 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 CAPR?
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.
CAPR snapshot
As of August 14, 2026, spot at $6.63, ATM IV 269.70%, IV rank 52.83%, expected move 77.32%. The strangle on CAPR 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 CAPR specifically: CAPR IV at 269.70% 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 77.32% (roughly $5.13 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 CAPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CAPR should anchor to the underlying notional of $6.63 per share and to the trader's directional view on CAPR stock.
CAPR strangle setup
The CAPR 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 CAPR at $6.63 on that close, the first option leg uses a $7.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CAPR 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 CAPR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.00 | $1.95 |
| Buy 1 | Put | $6.00 | $1.60 |
CAPR strangle risk and reward
- Net Premium / Debit
- -$355.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$355.00
- Breakeven(s)
- $2.45, $10.55
- 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.
CAPR strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on CAPR. 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 | -99.8% | +$244.00 |
| $1.47 | -77.8% | +$97.52 |
| $2.94 | -55.7% | -$48.96 |
| $4.40 | -33.6% | -$195.45 |
| $5.87 | -11.5% | -$341.93 |
| $7.33 | +10.6% | -$321.59 |
| $8.80 | +32.7% | -$175.11 |
| $10.26 | +54.8% | -$28.62 |
| $11.73 | +76.9% | +$117.86 |
| $13.19 | +99.0% | +$264.34 |
When traders use strangle on CAPR
Strangles on CAPR 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 CAPR chain.
CAPR thesis for this strangle
The market-implied 1-standard-deviation range for CAPR extends from approximately $1.50 on the downside to $11.76 on the upside. A CAPR 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 CAPR IV rank near 52.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CAPR should anchor more to the directional view and the expected-move geometry. As a Healthcare name, CAPR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CAPR-specific events.
CAPR 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. CAPR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CAPR alongside the broader basket even when CAPR-specific fundamentals are unchanged. Always rebuild the position from current CAPR chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on CAPR?
- A strangle on CAPR is the strangle strategy applied to CAPR (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 CAPR stock at $6.63 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CAPR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CAPR 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 CAPR strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 269.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$355.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CAPR strangle?
- The breakeven for the CAPR strangle priced on this page is roughly $2.45 and $10.55 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 CAPR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 77.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on CAPR?
- Strangles on CAPR 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 CAPR chain.
- How does current CAPR implied volatility affect this strangle?
- CAPR ATM IV is at 269.70% with IV rank near 52.83%, 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.