How are CNX 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 CNX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 32.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CNX strangle?

The breakeven for the CNX strangle priced on this page is roughly $31.25 and $35.75 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 CNX market-implied 1-standard-deviation expected move is approximately 9.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CNX implied volatility affect this strangle?

CNX ATM IV is at 32.40% with IV rank near 33.06%, 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.

CNX Strangle Strategy

CNX (CNX Resources Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

CNX Resources Corporation operates as an independent company primarily focused on natural gas and midstream activities. Its core business involves the acquisition, exploration, development, and production of natural gas properties, predominantly situated within the Appalachian Basin. The company's operations are structured into two distinct segments: Shale and Coalbed Methane. CNX is a producer and supplier of pipeline-grade natural gas, primarily serving wholesale customers. Its extensive asset portfolio includes significant natural gas extraction rights. Specifically, it holds mineral rights across: Approximately 526,000 net acres in the Marcellus Shale, located in Pennsylvania, West Virginia, and Ohio.

CNX (CNX Resources Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $4.77B, a trailing P/E of 3.88, a beta of 0.59 versus the broader market, a 52-week range of 27.72-43.62, average daily share volume of 1.9M, a public-listing history dating back to 1999, approximately 458 full-time employees. These structural characteristics shape how CNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.59 indicates CNX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 3.88 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a strangle on CNX?

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 CNX snapshot

As of June 29, 2026, spot at $33.16, ATM IV 32.40%, IV rank 33.06%, expected move 9.29%. The strangle on CNX 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 18-day expiry.

Why this strangle structure on CNX specifically: CNX IV at 32.40% 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 9.29% (roughly $3.08 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNX should anchor to the underlying notional of $33.16 per share and to the trader's directional view on CNX stock.

CNX strangle setup

The CNX 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 CNX near $33.16, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNX chain at a 18-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 CNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$35.00	$0.30
Buy 1	Put	$32.00	$0.45

CNX strangle risk and reward

Net Premium / Debit: -$75.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$75.00
Breakeven(s): $31.25, $35.75
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.

CNX strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on CNX. 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%	+$3,124.00
$7.34	-77.9%	+$2,390.92
$14.67	-55.8%	+$1,657.85
$22.00	-33.6%	+$924.77
$29.33	-11.5%	+$191.70
$36.66	+10.6%	+$91.38
$43.99	+32.7%	+$824.45
$51.33	+54.8%	+$1,557.53
$58.66	+76.9%	+$2,290.60
$65.99	+99.0%	+$3,023.68

When traders use strangle on CNX

Strangles on CNX 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 CNX chain.

CNX thesis for this strangle

The market-implied 1-standard-deviation range for CNX extends from approximately $30.08 on the downside to $36.24 on the upside. A CNX 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 CNX IV rank near 33.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CNX should anchor more to the directional view and the expected-move geometry. As a Energy name, CNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNX-specific events.

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

Frequently asked questions

What is a strangle on CNX?: A strangle on CNX is the strangle strategy applied to CNX (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 CNX stock trading near $33.16, the strikes shown on this page are snapped to the nearest listed CNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CNX 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 CNX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 32.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CNX strangle?: The breakeven for the CNX strangle priced on this page is roughly $31.25 and $35.75 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 CNX market-implied 1-standard-deviation expected move is approximately 9.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CNX?: Strangles on CNX 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 CNX chain.
How does current CNX implied volatility affect this strangle?: CNX ATM IV is at 32.40% with IV rank near 33.06%, 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.