INCR Strangle Strategy
INCR (InterCure Ltd.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
InterCure Ltd., together with its subsidiaries, engages in the research, cultivation, production, marketing, and distribution of medical cannabis products in Israel and internationally. It offers dried cannabis inflorescences and cannabis extract mixed with oil. The company also invests in biomed sector. InterCure Ltd. was incorporated in 1994 and is headquartered in Herzliya, Israel.
INCR (InterCure Ltd.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $44.8M, a beta of 1.11 versus the broader market, a 52-week range of 0.68-1.77, average daily share volume of 40K, a public-listing history dating back to 2019, approximately 320 full-time employees. These structural characteristics shape how INCR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places INCR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a strangle on INCR?
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 INCR snapshot
As of May 15, 2026, spot at $0.84, ATM IV 27.00%, IV rank 1.98%, expected move 7.74%. The strangle on INCR 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 INCR specifically: INCR IV at 27.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a INCR strangle, with a market-implied 1-standard-deviation move of approximately 7.74% (roughly $0.07 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 INCR expiries trade a higher absolute premium for lower per-day decay. Position sizing on INCR should anchor to the underlying notional of $0.84 per share and to the trader's directional view on INCR stock.
INCR strangle setup
The INCR 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 INCR near $0.84, the first option leg uses a $0.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INCR 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 INCR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.88 | N/A |
| Buy 1 | Put | $0.80 | N/A |
INCR 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.
INCR strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on INCR. 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 INCR
Strangles on INCR 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 INCR chain.
INCR thesis for this strangle
The market-implied 1-standard-deviation range for INCR extends from approximately $0.77 on the downside to $0.91 on the upside. A INCR 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 INCR IV rank near 1.98% 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 INCR at 27.00%. As a Healthcare name, INCR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INCR-specific events.
INCR 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. INCR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INCR alongside the broader basket even when INCR-specific fundamentals are unchanged. Always rebuild the position from current INCR chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on INCR?
- A strangle on INCR is the strangle strategy applied to INCR (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 INCR stock trading near $0.84, the strikes shown on this page are snapped to the nearest listed INCR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INCR 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 INCR strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.00%), 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 INCR strangle?
- The breakeven for the INCR 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 INCR market-implied 1-standard-deviation expected move is approximately 7.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on INCR?
- Strangles on INCR 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 INCR chain.
- How does current INCR implied volatility affect this strangle?
- INCR ATM IV is at 27.00% with IV rank near 1.98%, 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.