How are CRC 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 CRC strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 39.20%), 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 CRC strangle?

The breakeven for the CRC strangle priced on this page is roughly $52.88 and $69.63 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 CRC market-implied 1-standard-deviation expected move is approximately 11.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CRC implied volatility affect this strangle?

CRC ATM IV is at 39.20% with IV rank near 35.95%, 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.

CRC Strangle Strategy

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

California Resources Corporation operates as an independent oil and natural gas company. The company explores for, produces, gathers, processes, and markets crude oil, natural gas, and natural gas liquids for marketers, California refineries, and other purchasers that have access to transportation and storage facilities. As of December 31, 2021, it had interests in approximately 1.9 million net mineral acres with proved reserves totaled an estimated 480 million barrels of oil equivalent. The company also engages in the generation and sale of electricity to the local utility and the grid. The company was incorporated in 2014 and is based in Santa Clarita, California.

CRC (California Resources Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $5.27B, a beta of 0.96 versus the broader market, a 52-week range of 41.13-71.98, average daily share volume of 1.0M, a public-listing history dating back to 2020, approximately 2K full-time employees. These structural characteristics shape how CRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.96 places CRC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CRC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on CRC?

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 CRC snapshot

As of May 15, 2026, spot at $61.03, ATM IV 39.20%, IV rank 35.95%, expected move 11.24%. The strangle on CRC 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 63-day expiry.

Why this strangle structure on CRC specifically: CRC IV at 39.20% 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 11.24% (roughly $6.86 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRC should anchor to the underlying notional of $61.03 per share and to the trader's directional view on CRC stock.

CRC strangle setup

The CRC 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 CRC near $61.03, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRC chain at a 63-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 CRC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$65.00	$2.35
Buy 1	Put	$57.50	$2.28

CRC strangle risk and reward

Net Premium / Debit: -$462.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$462.50
Breakeven(s): $52.88, $69.63
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.

CRC strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on CRC. 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%	+$5,286.50
$13.50	-77.9%	+$3,937.20
$27.00	-55.8%	+$2,587.91
$40.49	-33.7%	+$1,238.61
$53.98	-11.5%	-$110.69
$67.47	+10.6%	-$215.02
$80.97	+32.7%	+$1,134.28
$94.46	+54.8%	+$2,483.58
$107.95	+76.9%	+$3,832.87
$121.45	+99.0%	+$5,182.17

When traders use strangle on CRC

Strangles on CRC 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 CRC chain.

CRC thesis for this strangle

The market-implied 1-standard-deviation range for CRC extends from approximately $54.17 on the downside to $67.89 on the upside. A CRC 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 CRC IV rank near 35.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on CRC should anchor more to the directional view and the expected-move geometry. As a Energy name, CRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRC-specific events.

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

Frequently asked questions

What is a strangle on CRC?: A strangle on CRC is the strangle strategy applied to CRC (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 CRC stock trading near $61.03, the strikes shown on this page are snapped to the nearest listed CRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CRC 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 CRC strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 39.20%), 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 CRC strangle?: The breakeven for the CRC strangle priced on this page is roughly $52.88 and $69.63 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 CRC market-implied 1-standard-deviation expected move is approximately 11.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on CRC?: Strangles on CRC 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 CRC chain.
How does current CRC implied volatility affect this strangle?: CRC ATM IV is at 39.20% with IV rank near 35.95%, 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.