How are COHU 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 COHU strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 74.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$247.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a COHU strangle?

The breakeven for the COHU strangle priced on this page is roughly $52.53 and $62.48 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 COHU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current COHU implied volatility affect this strangle?

COHU ATM IV is at 74.70% with IV rank near 13.17%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

COHU Strangle Strategy

COHU (Cohu, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Cohu, Inc. stands as a prominent global provider of advanced semiconductor test equipment and comprehensive associated services. Operating through its various subsidiaries, the company extends its reach across key international markets including China, the United States, Taiwan, Malaysia, and the Philippines. Its diverse product portfolio caters to semiconductor and electronics manufacturers, as well as test subcontractors, encompassing crucial equipment such as automated test equipment (ATE) for both wafer-level and device package testing, and a wide array of test and inspection handlers. These handlers include specialized pick-and-place, turret, gravity, strip, and advanced micro-electromechanical system (MEMS) and thermal sub-systems. Cohu also offers vital interface components like test contactors, probe heads, and pins. Beyond hardware, Cohu delivers extensive post-sales support, including spare parts and kits, robust parts and labor warranties for its systems and instruments, and essential training for system maintenance and operation.

COHU (Cohu, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $2.80B, a beta of 1.59 versus the broader market, a 52-week range of 18.67-74.6, average daily share volume of 1.4M, a public-listing history dating back to 1980, approximately 3K full-time employees. These structural characteristics shape how COHU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.59 indicates COHU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. COHU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on COHU?

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.

COHU snapshot

As of August 14, 2026, spot at $59.01, ATM IV 74.70%, IV rank 13.17%, expected move 21.42%. The strangle on COHU 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 7-day expiry.

Why this strangle structure on COHU specifically: COHU IV at 74.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a COHU strangle, with a market-implied 1-standard-deviation move of approximately 21.42% (roughly $12.64 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COHU expiries trade a higher absolute premium for lower per-day decay. Position sizing on COHU should anchor to the underlying notional of $59.01 per share and to the trader's directional view on COHU stock.

COHU strangle setup

The COHU 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 COHU at $59.01 on that close, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COHU chain at a 7-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 COHU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$60.00	$1.68
Buy 1	Put	$55.00	$0.80

COHU strangle risk and reward

Net Premium / Debit: -$247.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$247.50
Breakeven(s): $52.53, $62.48
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.

COHU strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on COHU. 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%	+$5,251.50
$13.06	-77.9%	+$3,946.87
$26.10	-55.8%	+$2,642.23
$39.15	-33.7%	+$1,337.60
$52.20	-11.5%	+$32.97
$65.24	+10.6%	+$276.67
$78.29	+32.7%	+$1,581.30
$91.33	+54.8%	+$2,885.93
$104.38	+76.9%	+$4,190.57
$117.43	+99.0%	+$5,495.20

When traders use strangle on COHU

Strangles on COHU 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 COHU chain.

COHU thesis for this strangle

The market-implied 1-standard-deviation range for COHU extends from approximately $46.37 on the downside to $71.65 on the upside. A COHU 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 COHU IV rank near 13.17% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on COHU at 74.70%. As a Technology name, COHU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COHU-specific events.

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

Frequently asked questions

What is a strangle on COHU?: A strangle on COHU is the strangle strategy applied to COHU (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 COHU stock at $59.01 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed COHU chain strike and the premiums come straight from that session's bid/ask midpoint.
How are COHU 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 COHU strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 74.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$247.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a COHU strangle?: The breakeven for the COHU strangle priced on this page is roughly $52.53 and $62.48 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 COHU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on COHU?: Strangles on COHU 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 COHU chain.
How does current COHU implied volatility affect this strangle?: COHU ATM IV is at 74.70% with IV rank near 13.17%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.