IMDX Strangle Strategy
IMDX (Insight Molecular Diagnostics Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
OncoCyte Corporation functions as a molecular diagnostics firm specializing in the research, development, and market introduction of distinctive, laboratory-developed tests aimed at cancer identification. Its operations span both the United States and international territories. The company's key offerings include DetermaRx, a molecular diagnostic tool tailored for detecting early-stage adenocarcinoma of the lung, and DetermaIO, a proprietary gene expression analysis. Additionally, OncoCyte provides a range of expert services, such as biomarker discovery, assay design and refinement, and clinical trial assistance, which encompass offering various biomarker tests to pharmaceutical partners. A strategic partnership with Life Technologies Corporation focuses on the collaborative development and commercialization of the Oncomine Comprehensive Assay Plus and Determa IO assay, intended for integration with the Ion Torrent Genexus integrated sequencer and purification system. OncoCyte Corporation was founded in 2009 and maintains its principal office in Irvine, California.
IMDX (Insight Molecular Diagnostics Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $144.9M, a beta of 1.77 versus the broader market, a 52-week range of 2.33-8.51, average daily share volume of 394K, a public-listing history dating back to 2015, approximately 46 full-time employees. These structural characteristics shape how IMDX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.77 indicates IMDX 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 IMDX?
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 IMDX snapshot
As of June 29, 2026, spot at $5.41, ATM IV 314.90%, IV rank 64.13%, expected move 90.28%. The strangle on IMDX 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 18-day expiry.
Why this strangle structure on IMDX specifically: IMDX IV at 314.90% 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 90.28% (roughly $4.88 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IMDX expiries trade a higher absolute premium for lower per-day decay. Position sizing on IMDX should anchor to the underlying notional of $5.41 per share and to the trader's directional view on IMDX stock.
IMDX strangle setup
The IMDX 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 IMDX near $5.41, the first option leg uses a $5.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IMDX chain at a 18-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 IMDX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.68 | N/A |
| Buy 1 | Put | $5.14 | N/A |
IMDX 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.
IMDX strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on IMDX. 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 IMDX
Strangles on IMDX 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 IMDX chain.
IMDX thesis for this strangle
The market-implied 1-standard-deviation range for IMDX extends from approximately $0.53 on the downside to $10.29 on the upside. A IMDX 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 IMDX IV rank near 64.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on IMDX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, IMDX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IMDX-specific events.
IMDX 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. IMDX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IMDX alongside the broader basket even when IMDX-specific fundamentals are unchanged. Always rebuild the position from current IMDX chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on IMDX?
- A strangle on IMDX is the strangle strategy applied to IMDX (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 IMDX stock trading near $5.41, the strikes shown on this page are snapped to the nearest listed IMDX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IMDX 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 IMDX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 314.90%), 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 IMDX strangle?
- The breakeven for the IMDX 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 IMDX market-implied 1-standard-deviation expected move is approximately 90.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on IMDX?
- Strangles on IMDX 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 IMDX chain.
- How does current IMDX implied volatility affect this strangle?
- IMDX ATM IV is at 314.90% with IV rank near 64.13%, 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.