How are HUN 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 HUN strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 59.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$305.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HUN strangle?

The breakeven for the HUN strangle priced on this page is roughly $9.95 and $17.05 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 HUN market-implied 1-standard-deviation expected move is approximately 17.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HUN implied volatility affect this strangle?

HUN ATM IV is at 59.40% with IV rank near 23.56%, 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.

HUN Strangle Strategy

HUN (Huntsman Corporation), in the Basic Materials sector, (Chemicals industry), listed on NYSE.

Huntsman Corporation manufactures and sells differentiated organic chemical products worldwide. The company operates through four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyols, thermoplastic polyurethane, propylene oxide, and methyl tertiary-butyl ether products. The Performance Products segment manufactures amines and maleic anhydrides, including ethylene oxide, propylene oxide, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines, and acrylonitrile. The Advanced Materials segment offers epoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents and toughening agents, and carbon nanotubes additives; and base liquid and solid resins. The Textile Effects segment provides textile chemicals and dyes.

HUN (Huntsman Corporation) trades in the Basic Materials sector, specifically Chemicals, with a market capitalization of approximately $2.52B, a beta of 0.64 versus the broader market, a 52-week range of 7.3-15.9, average daily share volume of 6.5M, a public-listing history dating back to 2005, approximately 6K full-time employees. These structural characteristics shape how HUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.64 indicates HUN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HUN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on HUN?

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 HUN snapshot

As of May 15, 2026, spot at $13.79, ATM IV 59.40%, IV rank 23.56%, expected move 17.03%. The strangle on HUN 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 98-day expiry.

Why this strangle structure on HUN specifically: HUN IV at 59.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a HUN strangle, with a market-implied 1-standard-deviation move of approximately 17.03% (roughly $2.35 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUN should anchor to the underlying notional of $13.79 per share and to the trader's directional view on HUN stock.

HUN strangle setup

The HUN 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 HUN near $13.79, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUN chain at a 98-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 HUN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$14.00	$1.73
Buy 1	Put	$13.00	$1.33

HUN strangle risk and reward

Net Premium / Debit: -$305.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$305.00
Breakeven(s): $9.95, $17.05
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.

HUN strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on HUN. 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	-99.9%	+$994.00
$3.06	-77.8%	+$689.21
$6.11	-55.7%	+$384.41
$9.15	-33.6%	+$79.62
$12.20	-11.5%	-$225.18
$15.25	+10.6%	-$180.03
$18.30	+32.7%	+$124.76
$21.35	+54.8%	+$429.56
$24.39	+76.9%	+$734.35
$27.44	+99.0%	+$1,039.15

When traders use strangle on HUN

Strangles on HUN 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 HUN chain.

HUN thesis for this strangle

The market-implied 1-standard-deviation range for HUN extends from approximately $11.44 on the downside to $16.14 on the upside. A HUN 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 HUN IV rank near 23.56% 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 HUN at 59.40%. As a Basic Materials name, HUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUN-specific events.

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

Frequently asked questions

What is a strangle on HUN?: A strangle on HUN is the strangle strategy applied to HUN (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 HUN stock trading near $13.79, the strikes shown on this page are snapped to the nearest listed HUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HUN 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 HUN strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 59.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$305.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HUN strangle?: The breakeven for the HUN strangle priced on this page is roughly $9.95 and $17.05 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 HUN market-implied 1-standard-deviation expected move is approximately 17.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on HUN?: Strangles on HUN 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 HUN chain.
How does current HUN implied volatility affect this strangle?: HUN ATM IV is at 59.40% with IV rank near 23.56%, 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.