How are CLMT 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 CLMT strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$420.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CLMT strangle?

The breakeven for the CLMT strangle priced on this page is roughly $40.80 and $54.20 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 CLMT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CLMT implied volatility affect this strangle?

CLMT ATM IV is at 54.20% with IV rank near 36.52%, 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.

CLMT Strangle Strategy

CLMT (Calumet Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.

Calumet, Inc. engages in the manufacturing, formulation, and sale of specialty branded products and renewable fuel. It operates through the following segments: Specialty Products and Solutions, Montana/Renewables, Performance Brands, and Corporate. The Specialty Products & Solutions segment consists of customer-focused solutions and formulation businesses. The Montana/Renewables segment is composed of a Great Falls specialty asphalt facility and Montana Renewables facility. The Performance Brands segment includes Royal Purple, Bel-Ray, and TruFuel. The Corporate segment focuses on the general and administrative expenses not allocated to other segments.

CLMT (Calumet Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $4.16B, a beta of 0.71 versus the broader market, a 52-week range of 12.94-49.17, average daily share volume of 1.0M, a public-listing history dating back to 2006, approximately 2K full-time employees. These structural characteristics shape how CLMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.71 places CLMT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CLMT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on CLMT?

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.

CLMT snapshot

As of August 14, 2026, spot at $47.82, ATM IV 54.20%, IV rank 36.52%, expected move 15.54%. The strangle on CLMT 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 35-day expiry.

Why this strangle structure on CLMT specifically: CLMT IV at 54.20% 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 15.54% (roughly $7.43 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 CLMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLMT should anchor to the underlying notional of $47.82 per share and to the trader's directional view on CLMT stock.

CLMT strangle setup

The CLMT 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 CLMT at $47.82 on that close, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLMT 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 CLMT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$50.00	$2.35
Buy 1	Put	$45.00	$1.85

CLMT strangle risk and reward

Net Premium / Debit: -$420.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$420.00
Breakeven(s): $40.80, $54.20
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.

CLMT strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on CLMT. 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	-100.0%	+$4,079.00
$10.58	-77.9%	+$3,021.78
$21.15	-55.8%	+$1,964.57
$31.73	-33.7%	+$907.35
$42.30	-11.5%	-$149.86
$52.87	+10.6%	-$132.92
$63.44	+32.7%	+$924.30
$74.02	+54.8%	+$1,981.51
$84.59	+76.9%	+$3,038.73
$95.16	+99.0%	+$4,095.94

When traders use strangle on CLMT

Strangles on CLMT 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 CLMT chain.

CLMT thesis for this strangle

The market-implied 1-standard-deviation range for CLMT extends from approximately $40.39 on the downside to $55.25 on the upside. A CLMT 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 CLMT IV rank near 36.52% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CLMT should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, CLMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLMT-specific events.

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

Frequently asked questions

What is a strangle on CLMT?: A strangle on CLMT is the strangle strategy applied to CLMT (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 CLMT stock at $47.82 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CLMT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CLMT 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 CLMT strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$420.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CLMT strangle?: The breakeven for the CLMT strangle priced on this page is roughly $40.80 and $54.20 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 CLMT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CLMT?: Strangles on CLMT 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 CLMT chain.
How does current CLMT implied volatility affect this strangle?: CLMT ATM IV is at 54.20% with IV rank near 36.52%, 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.