How are CPRI 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 CPRI strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 50.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$462.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CPRI strangle?

The breakeven for the CPRI strangle priced on this page is roughly $12.88 and $24.63 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 CPRI market-implied 1-standard-deviation expected move is approximately 14.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CPRI implied volatility affect this strangle?

CPRI ATM IV is at 50.70% with IV rank near 8.10%, 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.

CPRI Strangle Strategy

CPRI (Capri Holdings Limited), in the Consumer Cyclical sector, (Luxury Goods industry), listed on NYSE.

Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women’s and men’s apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and the Oceania. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, eyewear, watches, jewelry, fragrances, home furnishings, handbags, small leather goods, scarves and belts, and shoes and related accessories through a distribution network, including boutiques, and department and specialty stores, as well as through e-commerce sites. It also undertakes licensing agreements relating to manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

CPRI (Capri Holdings Limited) trades in the Consumer Cyclical sector, specifically Luxury Goods, with a market capitalization of approximately $2.22B, a trailing P/E of 16.81, a beta of 1.40 versus the broader market, a 52-week range of 16.72-28.27, average daily share volume of 3.1M, a public-listing history dating back to 2011, approximately 15K full-time employees. These structural characteristics shape how CPRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.40 indicates CPRI 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 CPRI?

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 CPRI snapshot

As of June 29, 2026, spot at $18.97, ATM IV 50.70%, IV rank 8.10%, expected move 14.54%. The strangle on CPRI 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 172-day expiry.

Why this strangle structure on CPRI specifically: CPRI IV at 50.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a CPRI strangle, with a market-implied 1-standard-deviation move of approximately 14.54% (roughly $2.76 on the underlying). The 172-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPRI should anchor to the underlying notional of $18.97 per share and to the trader's directional view on CPRI stock.

CPRI strangle setup

The CPRI 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 CPRI near $18.97, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPRI chain at a 172-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 CPRI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$20.00	$2.70
Buy 1	Put	$17.50	$1.93

CPRI strangle risk and reward

Net Premium / Debit: -$462.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$462.50
Breakeven(s): $12.88, $24.63
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.

CPRI strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on CPRI. 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	-99.9%	+$1,286.50
$4.20	-77.8%	+$867.17
$8.40	-55.7%	+$447.85
$12.59	-33.6%	+$28.52
$16.78	-11.5%	-$390.81
$20.98	+10.6%	-$364.87
$25.17	+32.7%	+$54.46
$29.36	+54.8%	+$473.79
$33.56	+76.9%	+$893.11
$37.75	+99.0%	+$1,312.44

When traders use strangle on CPRI

Strangles on CPRI 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 CPRI chain.

CPRI thesis for this strangle

The market-implied 1-standard-deviation range for CPRI extends from approximately $16.21 on the downside to $21.73 on the upside. A CPRI 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 CPRI IV rank near 8.10% 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 CPRI at 50.70%. As a Consumer Cyclical name, CPRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPRI-specific events.

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

Frequently asked questions

What is a strangle on CPRI?: A strangle on CPRI is the strangle strategy applied to CPRI (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 CPRI stock trading near $18.97, the strikes shown on this page are snapped to the nearest listed CPRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CPRI 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 CPRI strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 50.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$462.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPRI strangle?: The breakeven for the CPRI strangle priced on this page is roughly $12.88 and $24.63 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 CPRI market-implied 1-standard-deviation expected move is approximately 14.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CPRI?: Strangles on CPRI 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 CPRI chain.
How does current CPRI implied volatility affect this strangle?: CPRI ATM IV is at 50.70% with IV rank near 8.10%, 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.