GPRK Strangle Strategy
GPRK (GeoPark Limited), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Ecuador. As of December 31, 2021, the company had working and/or economic interests in 42 hydrocarbons blocks. It had net proved reserves of 87.8 million barrels of oil equivalent. GeoPark Limited has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013. GeoPark Limited was founded in 2002 and is based in Bogotá, Colombia.
GPRK (GeoPark Limited) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $507.9M, a trailing P/E of 9.47, a beta of 0.33 versus the broader market, a 52-week range of 5.75-10.34, average daily share volume of 1.0M, a public-listing history dating back to 2010, approximately 476 full-time employees. These structural characteristics shape how GPRK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates GPRK 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 9.47 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. GPRK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on GPRK?
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 GPRK snapshot
As of May 15, 2026, spot at $9.61, ATM IV 55.10%, IV rank 17.88%, expected move 15.80%. The strangle on GPRK 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 GPRK specifically: GPRK IV at 55.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a GPRK strangle, with a market-implied 1-standard-deviation move of approximately 15.80% (roughly $1.52 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 GPRK expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPRK should anchor to the underlying notional of $9.61 per share and to the trader's directional view on GPRK stock.
GPRK strangle setup
The GPRK 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 GPRK near $9.61, the first option leg uses a $10.09 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPRK 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 GPRK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.09 | N/A |
| Buy 1 | Put | $9.13 | N/A |
GPRK 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.
GPRK strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on GPRK. 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 GPRK
Strangles on GPRK 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 GPRK chain.
GPRK thesis for this strangle
The market-implied 1-standard-deviation range for GPRK extends from approximately $8.09 on the downside to $11.13 on the upside. A GPRK 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 GPRK IV rank near 17.88% 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 GPRK at 55.10%. As a Energy name, GPRK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPRK-specific events.
GPRK 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. GPRK positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GPRK alongside the broader basket even when GPRK-specific fundamentals are unchanged. Always rebuild the position from current GPRK chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on GPRK?
- A strangle on GPRK is the strangle strategy applied to GPRK (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 GPRK stock trading near $9.61, the strikes shown on this page are snapped to the nearest listed GPRK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GPRK 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 GPRK strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 55.10%), 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 GPRK strangle?
- The breakeven for the GPRK 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 GPRK market-implied 1-standard-deviation expected move is approximately 15.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on GPRK?
- Strangles on GPRK 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 GPRK chain.
- How does current GPRK implied volatility affect this strangle?
- GPRK ATM IV is at 55.10% with IV rank near 17.88%, 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.