How are CGEM 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 CGEM strangle priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 93.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$397.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CGEM strangle?

The breakeven for the CGEM strangle priced on this page is roughly $6.03 and $14.97 at expiration, derived from the November 13, 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 CGEM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CGEM implied volatility affect this strangle?

CGEM ATM IV is at 93.90% with IV rank near 17.54%, 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.

CGEM Strangle Strategy

CGEM (Cullinan Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Cullinan Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops therapies for autoimmune diseases and cancer in the United States. It engages in the development of CLN-978, a CD19xCD3 bispecific T cell engager for autoimmune diseases in Phase 1 clinical trials; Velinotamig, a BCMAxCD3 bispecific T cell in Phase 1 clinical trials in patients with autoimmune diseases; and CLN-049, a FLT3xCD3 bispecific T cell engager, which is in Phase 1 clinical trials in patients with relapsed and refractory acute myeloid leukemia or myelodysplastic syndrome. The company is also developing Zipalertinib, an orally available small-molecule, irreversible epidermal growth factor receptor inhibitor in Phase 2b portion of the REZILIENT1 clinical trial in patients with EGFR ex20ins non-small cell lung cancer. It has a license agreement with Chongqing Genrix Biopharmaceutical Co., Ltd to develop and commercialize velinotamig; a co-development agreement with Taiho Pharmaceutical Co., Ltd to develop zipalertinib; and a collaboration agreement with Adimab, LLC to discover and/or optimize antibodies. The company was formerly known as Cullinan Oncology, Inc. and changed its name to Cullinan Therapeutics, Inc. in April 2024. Cullinan Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.

CGEM (Cullinan Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $667.4M, a beta of -0.01 versus the broader market, a 52-week range of 7.93-23.19, average daily share volume of 857K, a public-listing history dating back to 2021, approximately 109 full-time employees. These structural characteristics shape how CGEM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.01 indicates CGEM 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 CGEM?

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.

CGEM snapshot

As of November 13, 2026, spot at $10.20, ATM IV 93.90%, IV rank 17.54%, expected move 26.92%. The strangle on CGEM below is built from the November 13, 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 CGEM specifically: CGEM IV at 93.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CGEM strangle, with a market-implied 1-standard-deviation move of approximately 26.92% (roughly $2.75 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 CGEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGEM should anchor to the underlying notional of $10.20 per share and to the trader's directional view on CGEM stock.

CGEM strangle setup

The CGEM strangle below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CGEM at $10.20 on that close, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGEM 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 CGEM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$11.00	$2.27
Buy 1	Put	$10.00	$1.70

CGEM strangle risk and reward

Net Premium / Debit: -$397.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$397.00
Breakeven(s): $6.03, $14.97
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.

CGEM strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on CGEM. 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%	+$602.00
$2.26	-77.8%	+$376.58
$4.52	-55.7%	+$151.17
$6.77	-33.6%	-$74.25
$9.03	-11.5%	-$299.67
$11.28	+10.6%	-$368.91
$13.54	+32.7%	-$143.50
$15.79	+54.8%	+$81.92
$18.04	+76.9%	+$307.34
$20.30	+99.0%	+$532.75

When traders use strangle on CGEM

Strangles on CGEM 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 CGEM chain.

CGEM thesis for this strangle

The market-implied 1-standard-deviation range for CGEM extends from approximately $7.45 on the downside to $12.95 on the upside. A CGEM 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 CGEM IV rank near 17.54% 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 CGEM at 93.90%. As a Healthcare name, CGEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGEM-specific events.

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

Frequently asked questions

What is a strangle on CGEM?: A strangle on CGEM is the strangle strategy applied to CGEM (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 CGEM stock at $10.20 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed CGEM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CGEM 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 CGEM strangle priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 93.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$397.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CGEM strangle?: The breakeven for the CGEM strangle priced on this page is roughly $6.03 and $14.97 at expiration, derived from the November 13, 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 CGEM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CGEM?: Strangles on CGEM 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 CGEM chain.
How does current CGEM implied volatility affect this strangle?: CGEM ATM IV is at 93.90% with IV rank near 17.54%, 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.