CHRD Strangle Strategy
CHRD (Chord Energy Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NASDAQ.
Chord Energy Corporation operates as an independent exploration and production company. It acquires, exploits, develops, and explores for crude oil, natural gas, and natural gas liquids in the Williston Basin. The company was founded in 2007 and is headquartered in Houston, Texas.
CHRD (Chord Energy Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $8.00B, a beta of 0.40 versus the broader market, a 52-week range of 84.25-150.5, average daily share volume of 1.1M, a public-listing history dating back to 2020, approximately 762 full-time employees. These structural characteristics shape how CHRD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.40 indicates CHRD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHRD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on CHRD?
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 CHRD snapshot
As of May 15, 2026, spot at $147.87, ATM IV 43.30%, IV rank 35.68%, expected move 12.41%. The strangle on CHRD 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 CHRD specifically: CHRD IV at 43.30% 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 12.41% (roughly $18.36 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 CHRD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHRD should anchor to the underlying notional of $147.87 per share and to the trader's directional view on CHRD stock.
CHRD strangle setup
The CHRD 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 CHRD near $147.87, the first option leg uses a $155.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHRD 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 CHRD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $155.00 | $4.60 |
| Buy 1 | Put | $140.00 | $4.75 |
CHRD strangle risk and reward
- Net Premium / Debit
- -$935.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$935.00
- Breakeven(s)
- $130.65, $164.35
- 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.
CHRD strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on CHRD. 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% | +$13,064.00 |
| $32.70 | -77.9% | +$9,794.62 |
| $65.40 | -55.8% | +$6,525.25 |
| $98.09 | -33.7% | +$3,255.87 |
| $130.79 | -11.6% | -$13.51 |
| $163.48 | +10.6% | -$87.12 |
| $196.17 | +32.7% | +$3,182.26 |
| $228.87 | +54.8% | +$6,451.64 |
| $261.56 | +76.9% | +$9,721.02 |
| $294.25 | +99.0% | +$12,990.39 |
When traders use strangle on CHRD
Strangles on CHRD 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 CHRD chain.
CHRD thesis for this strangle
The market-implied 1-standard-deviation range for CHRD extends from approximately $129.51 on the downside to $166.23 on the upside. A CHRD 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 CHRD IV rank near 35.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CHRD should anchor more to the directional view and the expected-move geometry. As a Energy name, CHRD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHRD-specific events.
CHRD 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. CHRD positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHRD alongside the broader basket even when CHRD-specific fundamentals are unchanged. Always rebuild the position from current CHRD chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on CHRD?
- A strangle on CHRD is the strangle strategy applied to CHRD (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 CHRD stock trading near $147.87, the strikes shown on this page are snapped to the nearest listed CHRD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CHRD 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 CHRD strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 43.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$935.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CHRD strangle?
- The breakeven for the CHRD strangle priced on this page is roughly $130.65 and $164.35 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 CHRD market-implied 1-standard-deviation expected move is approximately 12.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on CHRD?
- Strangles on CHRD 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 CHRD chain.
- How does current CHRD implied volatility affect this strangle?
- CHRD ATM IV is at 43.30% with IV rank near 35.68%, 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.