How are FEIM 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 FEIM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 109.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,590.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FEIM strangle?

The breakeven for the FEIM strangle priced on this page is roughly $44.10 and $80.90 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 FEIM market-implied 1-standard-deviation expected move is approximately 31.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FEIM implied volatility affect this strangle?

Current FEIM ATM IV is 109.90%; IV rank context is unavailable in the current snapshot.

FEIM Strangle Strategy

FEIM (Frequency Electronics, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

Frequency Electronics, Inc. (FEIM) is a firm dedicated to the design, development, production, and sale of highly precise timing and frequency control products and their associated components. These specialized items are primarily intended for microwave integrated circuit applications. The company's operations are divided into two main segments. The FEI-NY segment is responsible for advanced timekeeping, frequency generation, and synchronization systems, which find utility in communication satellites, ground-based cellular telecommunication stations, and other similar terrestrial installations. This segment also supplies bespoke components and systems to the United States military. Meanwhile, the FEI-Zyfer segment focuses on crafting precision navigation and timing solutions.

FEIM (Frequency Electronics, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $615.3M, a trailing P/E of 84.76, a beta of 0.61 versus the broader market, a 52-week range of 18.7-80, average daily share volume of 181K, a public-listing history dating back to 1980, approximately 200 full-time employees. These structural characteristics shape how FEIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.61 indicates FEIM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 84.76 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. FEIM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on FEIM?

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 FEIM snapshot

As of June 29, 2026, spot at $62.22, ATM IV 109.90%, expected move 31.51%. The strangle on FEIM 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 53-day expiry.

Why this strangle structure on FEIM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FEIM is inferred from ATM IV at 109.90% alone, with a market-implied 1-standard-deviation move of approximately 31.51% (roughly $19.60 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FEIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on FEIM should anchor to the underlying notional of $62.22 per share and to the trader's directional view on FEIM stock.

FEIM strangle setup

The FEIM 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 FEIM near $62.22, 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 FEIM chain at a 53-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 FEIM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$65.00	$8.10
Buy 1	Put	$60.00	$7.80

FEIM strangle risk and reward

Net Premium / Debit: -$1,590.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,590.00
Breakeven(s): $44.10, $80.90
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.

FEIM strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on FEIM. 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%	+$4,409.00
$13.77	-77.9%	+$3,033.39
$27.52	-55.8%	+$1,657.78
$41.28	-33.7%	+$282.18
$55.03	-11.5%	-$1,093.43
$68.79	+10.6%	-$1,210.96
$82.55	+32.7%	+$164.65
$96.30	+54.8%	+$1,540.26
$110.06	+76.9%	+$2,915.86
$123.81	+99.0%	+$4,291.47

When traders use strangle on FEIM

Strangles on FEIM 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 FEIM chain.

FEIM thesis for this strangle

The market-implied 1-standard-deviation range for FEIM extends from approximately $42.62 on the downside to $81.82 on the upside. A FEIM 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. As a Technology name, FEIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FEIM-specific events.

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

Frequently asked questions

What is a strangle on FEIM?: A strangle on FEIM is the strangle strategy applied to FEIM (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 FEIM stock trading near $62.22, the strikes shown on this page are snapped to the nearest listed FEIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FEIM 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 FEIM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 109.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,590.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FEIM strangle?: The breakeven for the FEIM strangle priced on this page is roughly $44.10 and $80.90 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 FEIM market-implied 1-standard-deviation expected move is approximately 31.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on FEIM?: Strangles on FEIM 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 FEIM chain.
How does current FEIM implied volatility affect this strangle?: Current FEIM ATM IV is 109.90%; IV rank context is unavailable in the current snapshot.