FIZZ Strangle Strategy
FIZZ (National Beverage Corp.), in the Consumer Defensive sector, (Beverages - Non-Alcoholic industry), listed on NASDAQ.
National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada. The company offers beverages to the active and health-conscious consumers, including sparkling waters, energy drinks, and juices under the LaCroix, LaCroix Cúrate, LaCroix NiCola, Clear Fruit, Rip It, Everfresh, Everfresh Premier Varietals, and Mr. Pure brands. It also offers carbonated soft drinks under the Shasta and Faygo brands. The company serves retailers, as well as various smaller up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. National Beverage Corp. was incorporated in 1985 and is based in Fort Lauderdale, Florida.
FIZZ (National Beverage Corp.) trades in the Consumer Defensive sector, specifically Beverages - Non-Alcoholic, with a market capitalization of approximately $3.26B, a trailing P/E of 17.32, a beta of 0.71 versus the broader market, a 52-week range of 31.21-47.89, average daily share volume of 243K, a public-listing history dating back to 1991, approximately 2K full-time employees. These structural characteristics shape how FIZZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places FIZZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a strangle on FIZZ?
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 FIZZ snapshot
As of May 15, 2026, spot at $34.53, ATM IV 17.60%, IV rank 0.90%, expected move 5.05%. The strangle on FIZZ 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 34-day expiry.
Why this strangle structure on FIZZ specifically: FIZZ IV at 17.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a FIZZ strangle, with a market-implied 1-standard-deviation move of approximately 5.05% (roughly $1.74 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FIZZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on FIZZ should anchor to the underlying notional of $34.53 per share and to the trader's directional view on FIZZ stock.
FIZZ strangle setup
The FIZZ 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 FIZZ near $34.53, the first option leg uses a $36.26 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FIZZ chain at a 34-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 FIZZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $36.26 | N/A |
| Buy 1 | Put | $32.80 | N/A |
FIZZ strangle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
FIZZ strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on FIZZ. 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.
When traders use strangle on FIZZ
Strangles on FIZZ 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 FIZZ chain.
FIZZ thesis for this strangle
The market-implied 1-standard-deviation range for FIZZ extends from approximately $32.79 on the downside to $36.27 on the upside. A FIZZ 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 FIZZ IV rank near 0.90% 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 FIZZ at 17.60%. As a Consumer Defensive name, FIZZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FIZZ-specific events.
FIZZ 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. FIZZ positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FIZZ alongside the broader basket even when FIZZ-specific fundamentals are unchanged. Always rebuild the position from current FIZZ chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on FIZZ?
- A strangle on FIZZ is the strangle strategy applied to FIZZ (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 FIZZ stock trading near $34.53, the strikes shown on this page are snapped to the nearest listed FIZZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FIZZ 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 FIZZ strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 17.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FIZZ strangle?
- The breakeven for the FIZZ strangle priced on this page is no defined breakeven on the modeled curve 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 FIZZ market-implied 1-standard-deviation expected move is approximately 5.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on FIZZ?
- Strangles on FIZZ 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 FIZZ chain.
- How does current FIZZ implied volatility affect this strangle?
- FIZZ ATM IV is at 17.60% with IV rank near 0.90%, 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.