How are EXC 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 EXC strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EXC strangle?

The breakeven for the EXC strangle priced on this page is roughly $43.20 and $48.80 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 EXC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current EXC implied volatility affect this strangle?

EXC ATM IV is at 18.40% with IV rank near 21.01%, 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.

EXC Strangle Strategy

EXC (Exelon Corporation), in the Utilities sector, (Regulated Electric industry), listed on NASDAQ.

Exelon Corporation, a utility holding company established in 1999 and headquartered in Chicago, Illinois, operates across the United States and Canada. The company primarily focuses on the generation, delivery, and marketing of energy. It maintains a diverse portfolio of power production facilities, utilizing nuclear, fossil fuel, wind, hydroelectric, biomass, and solar technologies. Exelon engages in the sale of electricity to both wholesale and retail clients, while also providing natural gas, renewable energy solutions, and various other energy-related products and services. Beyond generation, the corporation manages the regulated procurement and direct sale of electricity and natural gas to consumers, alongside overseeing the essential transmission and distribution infrastructure for both power and natural gas. To support its extensive operations, Exelon provides a wide array of internal services, including legal counsel, human resources, information technology, financial management, supply chain, accounting, engineering, customer support, infrastructure planning, asset management, system operations, and power acquisition.

EXC (Exelon Corporation) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $46.59B, a trailing P/E of 16.65, a beta of 0.40 versus the broader market, a 52-week range of 42.58-50.65, average daily share volume of 8.6M, a public-listing history dating back to 1973, approximately 21K full-time employees. These structural characteristics shape how EXC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.40 indicates EXC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EXC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on EXC?

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.

EXC snapshot

As of August 14, 2026, spot at $45.91, ATM IV 18.40%, IV rank 21.01%, expected move 5.28%. The strangle on EXC 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 35-day expiry.

Why this strangle structure on EXC specifically: EXC IV at 18.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a EXC strangle, with a market-implied 1-standard-deviation move of approximately 5.28% (roughly $2.42 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EXC expiries trade a higher absolute premium for lower per-day decay. Position sizing on EXC should anchor to the underlying notional of $45.91 per share and to the trader's directional view on EXC stock.

EXC strangle setup

The EXC 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 EXC at $45.91 on that close, the first option leg uses a $48.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EXC chain at a 35-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 EXC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$48.00	$0.33
Buy 1	Put	$44.00	$0.48

EXC strangle risk and reward

Net Premium / Debit: -$80.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$80.00
Breakeven(s): $43.20, $48.80
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.

EXC strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on EXC. 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%	+$4,319.00
$10.16	-77.9%	+$3,304.02
$20.31	-55.8%	+$2,289.03
$30.46	-33.7%	+$1,274.05
$40.61	-11.5%	+$259.06
$50.76	+10.6%	+$195.92
$60.91	+32.7%	+$1,210.91
$71.06	+54.8%	+$2,225.89
$81.21	+76.9%	+$3,240.88
$91.36	+99.0%	+$4,255.86

When traders use strangle on EXC

Strangles on EXC 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 EXC chain.

EXC thesis for this strangle

The market-implied 1-standard-deviation range for EXC extends from approximately $43.49 on the downside to $48.33 on the upside. A EXC 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 EXC IV rank near 21.01% 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 EXC at 18.40%. As a Utilities name, EXC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EXC-specific events.

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

Frequently asked questions

What is a strangle on EXC?: A strangle on EXC is the strangle strategy applied to EXC (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 EXC stock at $45.91 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed EXC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are EXC 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 EXC strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EXC strangle?: The breakeven for the EXC strangle priced on this page is roughly $43.20 and $48.80 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 EXC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on EXC?: Strangles on EXC 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 EXC chain.
How does current EXC implied volatility affect this strangle?: EXC ATM IV is at 18.40% with IV rank near 21.01%, 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.