HIMS Strangle Strategy
HIMS (Hims & Hers Health, Inc.), in the Healthcare sector, (Medical - Equipment & Services industry), listed on NYSE.
Hims & Hers Health, Inc. operates a comprehensive digital health platform that seamlessly links individuals with licensed medical professionals for virtual consultations and ongoing care. Through its user-friendly websites and mobile app, the company delivers a diverse portfolio of health and wellness solutions directly to consumers. This includes access to recurring prescription medications, alongside a wide selection of over-the-counter drugs, devices, cosmetics, and dietary supplements. Its core focus areas are general wellness, sexual health, skincare, and hair care. Specific non-prescription offerings span categories such as: Wellness: encompassing items like vitamin C, melatonin, biotin, and collagen protein supplements. Skincare: including products such as moisturizers, serums, and face washes.
HIMS (Hims & Hers Health, Inc.) trades in the Healthcare sector, specifically Medical - Equipment & Services, with a market capitalization of approximately $7.57B, a beta of 2.40 versus the broader market, a 52-week range of 13.74-70.43, average daily share volume of 25.6M, a public-listing history dating back to 2019, approximately 2K full-time employees. These structural characteristics shape how HIMS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.40 indicates HIMS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a strangle on HIMS?
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 HIMS snapshot
As of June 29, 2026, spot at $33.73, ATM IV 110.53%, IV rank 74.34%, expected move 31.69%. The strangle on HIMS 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 32-day expiry.
Why this strangle structure on HIMS specifically: HIMS IV at 110.53% is rich versus its 1-year range, which makes a premium-buying HIMS strangle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 31.69% (roughly $10.69 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HIMS expiries trade a higher absolute premium for lower per-day decay. Position sizing on HIMS should anchor to the underlying notional of $33.73 per share and to the trader's directional view on HIMS stock.
HIMS strangle setup
The HIMS 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 HIMS near $33.73, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HIMS chain at a 32-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 HIMS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $3.55 |
| Buy 1 | Put | $32.00 | $3.17 |
HIMS strangle risk and reward
- Net Premium / Debit
- -$671.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$671.50
- Breakeven(s)
- $25.29, $41.72
- 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.
HIMS strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on HIMS. 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% | +$2,527.50 |
| $7.47 | -77.9% | +$1,781.82 |
| $14.92 | -55.8% | +$1,036.14 |
| $22.38 | -33.6% | +$290.46 |
| $29.84 | -11.5% | -$455.21 |
| $37.29 | +10.6% | -$442.11 |
| $44.75 | +32.7% | +$303.57 |
| $52.21 | +54.8% | +$1,049.25 |
| $59.66 | +76.9% | +$1,794.93 |
| $67.12 | +99.0% | +$2,540.61 |
When traders use strangle on HIMS
Strangles on HIMS 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 HIMS chain.
HIMS thesis for this strangle
The market-implied 1-standard-deviation range for HIMS extends from approximately $23.04 on the downside to $44.42 on the upside. A HIMS 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 HIMS IV rank near 74.34% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on HIMS at 110.53%. As a Healthcare name, HIMS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HIMS-specific events.
HIMS 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. HIMS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HIMS alongside the broader basket even when HIMS-specific fundamentals are unchanged. Always rebuild the position from current HIMS chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on HIMS?
- A strangle on HIMS is the strangle strategy applied to HIMS (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 HIMS stock trading near $33.73, the strikes shown on this page are snapped to the nearest listed HIMS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HIMS 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 HIMS strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 110.53%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$671.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HIMS strangle?
- The breakeven for the HIMS strangle priced on this page is roughly $25.29 and $41.72 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 HIMS market-implied 1-standard-deviation expected move is approximately 31.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on HIMS?
- Strangles on HIMS 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 HIMS chain.
- How does current HIMS implied volatility affect this strangle?
- HIMS ATM IV is at 110.53% with IV rank near 74.34%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.