COHX Strangle Strategy
COHX (Investment Managers Series Trust II - Tradr 2X Long COHR Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
COHX uses swap agreements and listed call options to make bullish bets on the share price of Coherent Corp. (NYSE: COHR). The fund may also invest directly in COHR. Coherent Corp. develops, manufactures, and markets engineered materials, opto-electronic components and devices, and lasers for use in the industrial, communications, electronics, and instrumentation markets. It operates through the following segments: Networking, Materials, and Lasers. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in COHR price through daily rebalancing. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects.
COHX (Investment Managers Series Trust II - Tradr 2X Long COHR Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $110.1M, a beta of 6.62 versus the broader market, a 52-week range of 16.1-75.64, average daily share volume of 984K, a public-listing history dating back to 2026. These structural characteristics shape how COHX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 6.62 indicates COHX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a strangle on COHX?
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.
COHX snapshot
As of September 29, 2026, spot at $22.98, ATM IV 149.60%, IV rank 13.95%, expected move 42.89%. The strangle on COHX below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this strangle structure on COHX specifically: COHX IV at 149.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a COHX strangle, with a market-implied 1-standard-deviation move of approximately 42.89% (roughly $9.86 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COHX expiries trade a higher absolute premium for lower per-day decay. Position sizing on COHX should anchor to the underlying notional of $22.98 per share and to the trader's directional view on COHX stock.
COHX strangle setup
The COHX strangle below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With COHX at $22.98 on that close, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COHX chain at a 17-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 COHX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.00 | $2.35 |
| Buy 1 | Put | $22.00 | $2.53 |
COHX strangle risk and reward
- Net Premium / Debit
- -$487.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$487.50
- Breakeven(s)
- $17.13, $28.88
- 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.
COHX strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on COHX. 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% | +$1,711.50 |
| $5.09 | -77.9% | +$1,203.51 |
| $10.17 | -55.7% | +$695.52 |
| $15.25 | -33.6% | +$187.53 |
| $20.33 | -11.5% | -$320.46 |
| $25.41 | +10.6% | -$346.55 |
| $30.49 | +32.7% | +$161.44 |
| $35.57 | +54.8% | +$669.43 |
| $40.65 | +76.9% | +$1,177.42 |
| $45.73 | +99.0% | +$1,685.41 |
When traders use strangle on COHX
Strangles on COHX 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 COHX chain.
COHX thesis for this strangle
The market-implied 1-standard-deviation range for COHX extends from approximately $13.12 on the downside to $32.84 on the upside. A COHX 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 COHX IV rank near 13.95% 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 COHX at 149.60%. As a Financial Services name, COHX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COHX-specific events.
COHX 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. COHX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COHX alongside the broader basket even when COHX-specific fundamentals are unchanged. Always rebuild the position from current COHX chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on COHX?
- A strangle on COHX is the strangle strategy applied to COHX (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 COHX stock at $22.98 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed COHX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are COHX 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 COHX strangle priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 149.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$487.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COHX strangle?
- The breakeven for the COHX strangle priced on this page is roughly $17.13 and $28.88 at expiration, derived from the September 29, 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 COHX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on COHX?
- Strangles on COHX 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 COHX chain.
- How does current COHX implied volatility affect this strangle?
- COHX ATM IV is at 149.60% with IV rank near 13.95%, 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.