How are CHRW 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 CHRW strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 35.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$840.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHRW strangle?

The breakeven for the CHRW strangle priced on this page is roughly $146.60 and $178.40 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 CHRW market-implied 1-standard-deviation expected move is approximately 10.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHRW implied volatility affect this strangle?

CHRW ATM IV is at 35.80% with IV rank near 43.11%, 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.

CHRW Strangle Strategy

CHRW (C.H. Robinson Worldwide, Inc.), in the Industrials sector, (Integrated Freight & Logistics industry), listed on NASDAQ.

C.H. Robinson Worldwide, Inc., together with its subsidiaries, provides freight transportation services and logistics solutions to companies in various industries worldwide. The company operates in two segments, North American Surface Transportation and Global Forwarding. It offers transportation and logistics services, such as truckload; less than truckload transportation brokerage services, which include the shipment of single or multiple pallets of freight; intermodal transportation that comprise the shipment service of freight in containers or trailers by a combination of truck and rail; and non-vessel ocean common carrier and freight forwarding services, as well as organizes air shipments and provides door-to-door services. The company also offers customs broker services; and other logistics services, such as fee-based managed, warehousing, small parcel, and other services. It has contractual relationships with approximately 85,000 transportation companies, including motor carriers, railroads, and air and ocean carriers.

CHRW (C.H. Robinson Worldwide, Inc.) trades in the Industrials sector, specifically Integrated Freight & Logistics, with a market capitalization of approximately $19.24B, a trailing P/E of 32.65, a beta of 0.94 versus the broader market, a 52-week range of 92.36-203.34, average daily share volume of 2.0M, a public-listing history dating back to 1997, approximately 13K full-time employees. These structural characteristics shape how CHRW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.94 places CHRW roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CHRW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on CHRW?

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 CHRW snapshot

As of May 15, 2026, spot at $164.19, ATM IV 35.80%, IV rank 43.11%, expected move 10.26%. The strangle on CHRW 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 CHRW specifically: CHRW IV at 35.80% 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 10.26% (roughly $16.85 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 CHRW expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHRW should anchor to the underlying notional of $164.19 per share and to the trader's directional view on CHRW stock.

CHRW strangle setup

The CHRW 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 CHRW near $164.19, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHRW 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 CHRW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$170.00	$4.60
Buy 1	Put	$155.00	$3.80

CHRW strangle risk and reward

Net Premium / Debit: -$840.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$840.00
Breakeven(s): $146.60, $178.40
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.

CHRW strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on CHRW. 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%	+$14,659.00
$36.31	-77.9%	+$11,028.78
$72.61	-55.8%	+$7,398.56
$108.92	-33.7%	+$3,768.34
$145.22	-11.6%	+$138.12
$181.52	+10.6%	+$312.11
$217.82	+32.7%	+$3,942.33
$254.13	+54.8%	+$7,572.55
$290.43	+76.9%	+$11,202.77
$326.73	+99.0%	+$14,832.99

When traders use strangle on CHRW

Strangles on CHRW 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 CHRW chain.

CHRW thesis for this strangle

The market-implied 1-standard-deviation range for CHRW extends from approximately $147.34 on the downside to $181.04 on the upside. A CHRW 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 CHRW IV rank near 43.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CHRW should anchor more to the directional view and the expected-move geometry. As a Industrials name, CHRW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHRW-specific events.

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

Frequently asked questions

What is a strangle on CHRW?: A strangle on CHRW is the strangle strategy applied to CHRW (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 CHRW stock trading near $164.19, the strikes shown on this page are snapped to the nearest listed CHRW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHRW 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 CHRW strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 35.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$840.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHRW strangle?: The breakeven for the CHRW strangle priced on this page is roughly $146.60 and $178.40 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 CHRW market-implied 1-standard-deviation expected move is approximately 10.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CHRW?: Strangles on CHRW 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 CHRW chain.
How does current CHRW implied volatility affect this strangle?: CHRW ATM IV is at 35.80% with IV rank near 43.11%, 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.