CGNX Strangle Strategy

CGNX (Cognex Corporation), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.

Cognex Corporation specializes in machine vision technology, offering solutions that interpret and process visual data to streamline and automate production and logistics operations globally. Their advanced vision systems enable the automated manufacturing and tracking of individual components or finished goods, such as mobile devices, pharmaceutical containers, and automotive parts. This is achieved by precisely locating, recognizing, examining, and gauging items throughout their journey from production to delivery. The company provides a comprehensive software portfolio, including VisionPro, a collection of patented tools for sophisticated development; QuickBuild, an intuitive platform enabling users to create vision applications via a graphical, flowchart interface; and its specialized deep learning vision software. Beyond software, their offerings encompass robust vision sensors for tasks like ensuring component presence and accurate sizing, alongside the versatile In-Sight series of integrated vision systems and sensors. These tools support a variety of critical inspection functions, such as pinpointing part locations, confirming identities, precise dimensioning, validating assembly, and guiding robotics.

CGNX (Cognex Corporation) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $11.08B, a trailing P/E of 77.75, a beta of 1.51 versus the broader market, a 52-week range of 31.42-71.9, average daily share volume of 2.2M, a public-listing history dating back to 1989, approximately 3K full-time employees. These structural characteristics shape how CGNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.51 indicates CGNX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 77.75 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. CGNX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on CGNX?

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 CGNX snapshot

As of June 30, 2026, spot at $72.37, ATM IV 52.30%, IV rank 30.82%, expected move 14.99%. The strangle on CGNX 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 17-day expiry.

Why this strangle structure on CGNX specifically: CGNX IV at 52.30% 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 14.99% (roughly $10.85 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CGNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGNX should anchor to the underlying notional of $72.37 per share and to the trader's directional view on CGNX stock.

CGNX strangle setup

The CGNX 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 CGNX near $72.37, the first option leg uses a $75.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGNX chain at a 17-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 CGNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$75.99	N/A
Buy 1	Put	$68.75	N/A

CGNX 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.

CGNX strangle payoff curve

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

Strangles on CGNX 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 CGNX chain.

CGNX thesis for this strangle

The market-implied 1-standard-deviation range for CGNX extends from approximately $61.52 on the downside to $83.22 on the upside. A CGNX 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 CGNX IV rank near 30.82% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CGNX should anchor more to the directional view and the expected-move geometry. As a Technology name, CGNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGNX-specific events.

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

Frequently asked questions

What is a strangle on CGNX?: A strangle on CGNX is the strangle strategy applied to CGNX (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 CGNX stock trading near $72.37, the strikes shown on this page are snapped to the nearest listed CGNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CGNX 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 CGNX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 52.30%), 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 CGNX strangle?: The breakeven for the CGNX 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 CGNX market-implied 1-standard-deviation expected move is approximately 14.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CGNX?: Strangles on CGNX 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 CGNX chain.
How does current CGNX implied volatility affect this strangle?: CGNX ATM IV is at 52.30% with IV rank near 30.82%, 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.