How are GVA 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 GVA strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$402.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GVA strangle?

The breakeven for the GVA strangle priced on this page is roughly $125.98 and $149.03 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 GVA market-implied 1-standard-deviation expected move is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GVA implied volatility affect this strangle?

GVA ATM IV is at 29.70% with IV rank near 35.46%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

GVA Strangle Strategy

GVA (Granite Construction Incorporated), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.

Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States. It operates through two segments, Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public. It also focuses on water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies. The company also constructs various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar, and power projects. The Materials segment is involved in the production of aggregates and asphalt for internal use, as well as for sale to third parties.

GVA (Granite Construction Incorporated) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $6.26B, a trailing P/E of 33.68, a beta of 1.35 versus the broader market, a 52-week range of 84.45-145, average daily share volume of 617K, a public-listing history dating back to 1990, approximately 2K full-time employees. These structural characteristics shape how GVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates GVA has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. GVA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on GVA?

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 GVA snapshot

As of May 15, 2026, spot at $138.57, ATM IV 29.70%, IV rank 35.46%, expected move 8.51%. The strangle on GVA 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 GVA specifically: GVA IV at 29.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 8.51% (roughly $11.80 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 GVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on GVA should anchor to the underlying notional of $138.57 per share and to the trader's directional view on GVA stock.

GVA strangle setup

The GVA 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 GVA near $138.57, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GVA 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 GVA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$145.00	$2.58
Buy 1	Put	$130.00	$1.45

GVA strangle risk and reward

Net Premium / Debit: -$402.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$402.50
Breakeven(s): $125.98, $149.03
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.

GVA strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on GVA. 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%	+$12,596.50
$30.65	-77.9%	+$9,532.75
$61.28	-55.8%	+$6,469.00
$91.92	-33.7%	+$3,405.25
$122.56	-11.6%	+$341.51
$153.20	+10.6%	+$417.24
$183.83	+32.7%	+$3,480.99
$214.47	+54.8%	+$6,544.74
$245.11	+76.9%	+$9,608.49
$275.75	+99.0%	+$12,672.24

When traders use strangle on GVA

Strangles on GVA 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 GVA chain.

GVA thesis for this strangle

The market-implied 1-standard-deviation range for GVA extends from approximately $126.77 on the downside to $150.37 on the upside. A GVA 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 GVA IV rank near 35.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on GVA should anchor more to the directional view and the expected-move geometry. As a Industrials name, GVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GVA-specific events.

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

Frequently asked questions

What is a strangle on GVA?: A strangle on GVA is the strangle strategy applied to GVA (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 GVA stock trading near $138.57, the strikes shown on this page are snapped to the nearest listed GVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GVA 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 GVA strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$402.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GVA strangle?: The breakeven for the GVA strangle priced on this page is roughly $125.98 and $149.03 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 GVA market-implied 1-standard-deviation expected move is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on GVA?: Strangles on GVA 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 GVA chain.
How does current GVA implied volatility affect this strangle?: GVA ATM IV is at 29.70% with IV rank near 35.46%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.