How are IBRX 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 IBRX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 102.36%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$142.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IBRX strangle?

The breakeven for the IBRX strangle priced on this page is roughly $6.08 and $9.93 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 IBRX market-implied 1-standard-deviation expected move is approximately 29.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IBRX implied volatility affect this strangle?

IBRX ATM IV is at 102.36% with IV rank near 38.11%, 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.

IBRX Strangle Strategy

IBRX (ImmunityBio, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

ImmunityBio, Inc., a clinical-stage biotechnology company, develops therapies and vaccines to treat cancers and infectious diseases. It offers immunotherapy and cell therapy platforms, including antibody cytokine fusion proteins, synthetic immunomodulators, vaccine technologies, natural killer cells, and adaptive (T cell) immune systems. The company also develops therapeutic agents, which are in Phase II or III clinical trial for the treatment of liquid and solid tumors, including bladder, pancreatic, and lung cancers, as well as pathogens as SARS-CoV-2 and HIV. It has collaboration agreements with National Cancer Institute, National Institute of Deafness and Communication Disorders, and Amyris, Inc.; and license agreements with CytRx Corporation, EnGeneIC Pty Limited, GlobeImmune, Inc., and Infectious Disease Research Institute, Sanford Health, Shenzhen Beike Biotechnology Co. Ltd., Sorrento Therapeutics, Inc., and Viracta Therapeutics, Inc. The company was founded in 2014 and is based in San Diego, California.

IBRX (ImmunityBio, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $8.54B, a beta of 0.07 versus the broader market, a 52-week range of 1.95-12.43, average daily share volume of 25.9M, a public-listing history dating back to 2015, approximately 671 full-time employees. These structural characteristics shape how IBRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.07 indicates IBRX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a strangle on IBRX?

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 IBRX snapshot

As of May 15, 2026, spot at $7.94, ATM IV 102.36%, IV rank 38.11%, expected move 29.35%. The strangle on IBRX 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 IBRX specifically: IBRX IV at 102.36% 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 29.35% (roughly $2.33 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 IBRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on IBRX should anchor to the underlying notional of $7.94 per share and to the trader's directional view on IBRX stock.

IBRX strangle setup

The IBRX 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 IBRX near $7.94, the first option leg uses a $8.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IBRX 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 IBRX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$8.50	$0.75
Buy 1	Put	$7.50	$0.68

IBRX strangle risk and reward

Net Premium / Debit: -$142.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$142.50
Breakeven(s): $6.08, $9.93
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.

IBRX strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on IBRX. 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%	+$606.50
$1.76	-77.8%	+$431.05
$3.52	-55.7%	+$255.61
$5.27	-33.6%	+$80.16
$7.03	-11.5%	-$95.29
$8.78	+10.6%	-$114.26
$10.54	+32.7%	+$61.18
$12.29	+54.8%	+$236.63
$14.05	+76.9%	+$412.08
$15.80	+99.0%	+$587.53

When traders use strangle on IBRX

Strangles on IBRX 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 IBRX chain.

IBRX thesis for this strangle

The market-implied 1-standard-deviation range for IBRX extends from approximately $5.61 on the downside to $10.27 on the upside. A IBRX 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 IBRX IV rank near 38.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on IBRX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, IBRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IBRX-specific events.

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

Frequently asked questions

What is a strangle on IBRX?: A strangle on IBRX is the strangle strategy applied to IBRX (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 IBRX stock trading near $7.94, the strikes shown on this page are snapped to the nearest listed IBRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IBRX 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 IBRX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 102.36%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$142.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IBRX strangle?: The breakeven for the IBRX strangle priced on this page is roughly $6.08 and $9.93 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 IBRX market-implied 1-standard-deviation expected move is approximately 29.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on IBRX?: Strangles on IBRX 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 IBRX chain.
How does current IBRX implied volatility affect this strangle?: IBRX ATM IV is at 102.36% with IV rank near 38.11%, 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.