How are CDE 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 CDE strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 60.13%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$180.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CDE strangle?

The breakeven for the CDE strangle priced on this page is roughly $16.20 and $21.30 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 CDE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CDE implied volatility affect this strangle?

CDE ATM IV is at 60.13% with IV rank near 37.29%, 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.

CDE Strangle Strategy

CDE (Coeur Mining, Inc.), in the Basic Materials sector, (Gold industry), listed on NYSE.

Coeur Mining, Inc. is a company primarily focused on the exploration and development of precious metal deposits across North America, with operations spanning the United States, Canada, and Mexico. The company's key activities involve discovering and extracting resources such as gold, silver, zinc, and lead. Coeur Mining maintains a 100% ownership stake in several significant mining assets. These include the Palmarejo gold and silver mine in Chihuahua, Northern Mexico, which encompasses approximately 67,296 net acres. In northwestern Nevada, the Rochester silver and gold mine covers about 43,441 net acres. The Kensington gold mine, situated north of Juneau, Alaska, spans 3,972 net acres.

CDE (Coeur Mining, Inc.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $19.37B, a trailing P/E of 22.75, a beta of 1.33 versus the broader market, a 52-week range of 11.23-27.77, average daily share volume of 29.7M, a public-listing history dating back to 1980, approximately 3K full-time employees. These structural characteristics shape how CDE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.33 indicates CDE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CDE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on CDE?

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.

CDE snapshot

As of August 14, 2026, spot at $18.74, ATM IV 60.13%, IV rank 37.29%, expected move 17.24%. The strangle on CDE 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 28-day expiry.

Why this strangle structure on CDE specifically: CDE IV at 60.13% 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 17.24% (roughly $3.23 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CDE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDE should anchor to the underlying notional of $18.74 per share and to the trader's directional view on CDE stock.

CDE strangle setup

The CDE 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 CDE at $18.74 on that close, the first option leg uses a $19.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CDE chain at a 28-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 CDE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$19.50	$0.95
Buy 1	Put	$18.00	$0.85

CDE strangle risk and reward

Net Premium / Debit: -$180.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$180.00
Breakeven(s): $16.20, $21.30
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.

CDE strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on CDE. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$1,619.00
$4.15	-77.8%	+$1,204.76
$8.29	-55.7%	+$790.52
$12.44	-33.6%	+$376.28
$16.58	-11.5%	-$37.96
$20.72	+10.6%	-$57.79
$24.86	+32.7%	+$356.45
$29.01	+54.8%	+$770.69
$33.15	+76.9%	+$1,184.93
$37.29	+99.0%	+$1,599.17

When traders use strangle on CDE

Strangles on CDE 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 CDE chain.

CDE thesis for this strangle

The market-implied 1-standard-deviation range for CDE extends from approximately $15.51 on the downside to $21.97 on the upside. A CDE 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 CDE IV rank near 37.29% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CDE should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, CDE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDE-specific events.

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

Frequently asked questions

What is a strangle on CDE?: A strangle on CDE is the strangle strategy applied to CDE (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 CDE stock at $18.74 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CDE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CDE 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 CDE strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 60.13%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$180.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CDE strangle?: The breakeven for the CDE strangle priced on this page is roughly $16.20 and $21.30 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 CDE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CDE?: Strangles on CDE 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 CDE chain.
How does current CDE implied volatility affect this strangle?: CDE ATM IV is at 60.13% with IV rank near 37.29%, 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.