How are CBRE 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 CBRE strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 34.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$720.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CBRE strangle?

The breakeven for the CBRE strangle priced on this page is roughly $117.80 and $142.20 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 CBRE market-implied 1-standard-deviation expected move is approximately 9.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CBRE implied volatility affect this strangle?

CBRE ATM IV is at 34.80% with IV rank near 36.90%, 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.

CBRE Strangle Strategy

CBRE (CBRE Group, Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NYSE.

CBRE Group, Inc. operates as a commercial real estate services and investment company worldwide. It operates through three segments: Advisory Services, Global Workplace Solutions, and Real Estate Investments segments. The Advisory Services segment provides strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing; property sales and mortgage services under the CBRE Capital Markets brand; property and project management services, including construction management, marketing, building engineering, accounting, and financial services for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment offers facilities management, project management, and transaction management services. The Real Estate Investments segment provides investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; development services under the Trammell Crow Company brand primarily to users of and investors in commercial real estate; and flexible-space solutions under the CBRE Hana brand. The company was founded in 1906 and is headquartered in Dallas, Texas.

CBRE (CBRE Group, Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $41.18B, a trailing P/E of 31.56, a beta of 1.28 versus the broader market, a 52-week range of 118.81-174.27, average daily share volume of 2.2M, a public-listing history dating back to 2004, approximately 140K full-time employees. These structural characteristics shape how CBRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places CBRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a strangle on CBRE?

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 CBRE snapshot

As of May 15, 2026, spot at $130.22, ATM IV 34.80%, IV rank 36.90%, expected move 9.98%. The strangle on CBRE 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 CBRE specifically: CBRE IV at 34.80% 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 9.98% (roughly $12.99 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 CBRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBRE should anchor to the underlying notional of $130.22 per share and to the trader's directional view on CBRE stock.

CBRE strangle setup

The CBRE 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 CBRE near $130.22, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBRE 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 CBRE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$135.00	$3.55
Buy 1	Put	$125.00	$3.65

CBRE strangle risk and reward

Net Premium / Debit: -$720.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$720.00
Breakeven(s): $117.80, $142.20
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.

CBRE strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on CBRE. 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%	+$11,779.00
$28.80	-77.9%	+$8,899.87
$57.59	-55.8%	+$6,020.75
$86.38	-33.7%	+$3,141.62
$115.18	-11.6%	+$262.50
$143.97	+10.6%	+$176.63
$172.76	+32.7%	+$3,055.75
$201.55	+54.8%	+$5,934.88
$230.34	+76.9%	+$8,814.01
$259.13	+99.0%	+$11,693.13

When traders use strangle on CBRE

Strangles on CBRE 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 CBRE chain.

CBRE thesis for this strangle

The market-implied 1-standard-deviation range for CBRE extends from approximately $117.23 on the downside to $143.21 on the upside. A CBRE 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 CBRE IV rank near 36.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CBRE should anchor more to the directional view and the expected-move geometry. As a Real Estate name, CBRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBRE-specific events.

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

Frequently asked questions

What is a strangle on CBRE?: A strangle on CBRE is the strangle strategy applied to CBRE (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 CBRE stock trading near $130.22, the strikes shown on this page are snapped to the nearest listed CBRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CBRE 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 CBRE strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 34.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$720.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CBRE strangle?: The breakeven for the CBRE strangle priced on this page is roughly $117.80 and $142.20 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 CBRE market-implied 1-standard-deviation expected move is approximately 9.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CBRE?: Strangles on CBRE 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 CBRE chain.
How does current CBRE implied volatility affect this strangle?: CBRE ATM IV is at 34.80% with IV rank near 36.90%, 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.