How are GILD 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 GILD strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.45%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$313.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GILD strangle?

The breakeven for the GILD strangle priced on this page is roughly $119.87 and $139.13 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 GILD market-implied 1-standard-deviation expected move is approximately 7.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GILD implied volatility affect this strangle?

GILD ATM IV is at 27.45% with IV rank near 26.50%, 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.

GILD Strangle Strategy

GILD (Gilead Sciences, Inc.), in the Healthcare sector, (Drug Manufacturers - General industry), listed on NASDAQ.

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy, and Viread for the treatment of liver diseases. It also offers Yescarta, Tecartus, Trodelvy, and Zydelig products for the treatment of hematology, oncology, and cell therapy patients. In addition, the company provides Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; Ranexa, an oral formulation for the treatment of chronic angina; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. Gilead Sciences, Inc. has collaboration agreements with Arcus Biosciences, Inc.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Tango Therapeutics, Inc.; Jounce Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Gadeta B.V.; Bristol-Myers Squibb Company; Dragonfly Therapeutics, Inc.; and Merck & Co, Inc. The company was incorporated in 1987 and is headquartered in Foster City, California.

GILD (Gilead Sciences, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - General, with a market capitalization of approximately $165.19B, a trailing P/E of 17.93, a beta of 0.33 versus the broader market, a 52-week range of 97.86-157.29, average daily share volume of 6.2M, a public-listing history dating back to 1992, approximately 18K full-time employees. These structural characteristics shape how GILD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.33 indicates GILD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GILD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on GILD?

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 GILD snapshot

As of May 15, 2026, spot at $129.79, ATM IV 27.45%, IV rank 26.50%, expected move 7.87%. The strangle on GILD 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 28-day expiry.

Why this strangle structure on GILD specifically: GILD IV at 27.45% is on the cheap side of its 1-year range, which favors premium-buying structures like a GILD strangle, with a market-implied 1-standard-deviation move of approximately 7.87% (roughly $10.21 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GILD expiries trade a higher absolute premium for lower per-day decay. Position sizing on GILD should anchor to the underlying notional of $129.79 per share and to the trader's directional view on GILD stock.

GILD strangle setup

The GILD 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 GILD near $129.79, the first option leg uses a $136.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GILD chain at a 28-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 GILD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$136.00	$1.67
Buy 1	Put	$123.00	$1.47

GILD strangle risk and reward

Net Premium / Debit: -$313.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$313.00
Breakeven(s): $119.87, $139.13
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.

GILD strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on GILD. 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%	+$11,986.00
$28.71	-77.9%	+$9,116.38
$57.40	-55.8%	+$6,246.76
$86.10	-33.7%	+$3,377.15
$114.79	-11.6%	+$507.53
$143.49	+10.6%	+$436.09
$172.19	+32.7%	+$3,305.71
$200.88	+54.8%	+$6,175.33
$229.58	+76.9%	+$9,044.94
$258.28	+99.0%	+$11,914.56

When traders use strangle on GILD

Strangles on GILD 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 GILD chain.

GILD thesis for this strangle

The market-implied 1-standard-deviation range for GILD extends from approximately $119.58 on the downside to $140.00 on the upside. A GILD 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 GILD IV rank near 26.50% 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 GILD at 27.45%. As a Healthcare name, GILD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GILD-specific events.

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

Frequently asked questions

What is a strangle on GILD?: A strangle on GILD is the strangle strategy applied to GILD (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 GILD stock trading near $129.79, the strikes shown on this page are snapped to the nearest listed GILD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GILD 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 GILD strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.45%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$313.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GILD strangle?: The breakeven for the GILD strangle priced on this page is roughly $119.87 and $139.13 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 GILD market-implied 1-standard-deviation expected move is approximately 7.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on GILD?: Strangles on GILD 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 GILD chain.
How does current GILD implied volatility affect this strangle?: GILD ATM IV is at 27.45% with IV rank near 26.50%, 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.