How are IRM 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 IRM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 33.37%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$520.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IRM strangle?

The breakeven for the IRM strangle priced on this page is roughly $116.80 and $140.20 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 IRM market-implied 1-standard-deviation expected move is approximately 9.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IRM implied volatility affect this strangle?

IRM ATM IV is at 33.37% with IV rank near 42.36%, 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.

IRM Strangle Strategy

IRM (Iron Mountain Incorporated), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.

Established in 1951, Iron Mountain Incorporated (NYSE: IRM) has become the world's foremost authority in storage and information management solutions. More than 225,000 organizations globally trust Iron Mountain with their critical assets. With an extensive physical infrastructure spanning over 90 million square feet, the company operates approximately 1,450 facilities in around 50 countries. Within this vast network, Iron Mountain safeguards billions of valued items, including vital corporate records, highly confidential digital assets, and invaluable cultural and historical artifacts. Their comprehensive suite of offerings encompasses secure document archiving, robust information governance, digital transformation initiatives, confidential destruction services, along with advanced data centers, cloud computing solutions, and specialized art storage and logistics. These services empower clients to mitigate costs and risks, ensure regulatory compliance, facilitate swift disaster recovery, and enable a more efficient, digital-first operational model.

IRM (Iron Mountain Incorporated) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $39.40B, a trailing P/E of 144.38, a beta of 1.22 versus the broader market, a 52-week range of 77.77-134.68, average daily share volume of 1.5M, a public-listing history dating back to 1996, approximately 29K full-time employees. These structural characteristics shape how IRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.22 places IRM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 144.38 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. IRM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on IRM?

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 IRM snapshot

As of June 29, 2026, spot at $128.76, ATM IV 33.37%, IV rank 42.36%, expected move 9.57%. The strangle on IRM 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 IRM specifically: IRM IV at 33.37% 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 9.57% (roughly $12.32 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 IRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRM should anchor to the underlying notional of $128.76 per share and to the trader's directional view on IRM stock.

IRM strangle setup

The IRM 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 IRM near $128.76, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRM 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 IRM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$135.00	$3.15
Buy 1	Put	$122.00	$2.05

IRM strangle risk and reward

Net Premium / Debit: -$520.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$520.00
Breakeven(s): $116.80, $140.20
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.

IRM strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on IRM. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$11,679.00
$28.48	-77.9%	+$8,832.16
$56.95	-55.8%	+$5,985.31
$85.42	-33.7%	+$3,138.47
$113.88	-11.6%	+$291.62
$142.35	+10.6%	+$215.22
$170.82	+32.7%	+$3,062.07
$199.29	+54.8%	+$5,908.91
$227.76	+76.9%	+$8,755.75
$256.23	+99.0%	+$11,602.60

When traders use strangle on IRM

Strangles on IRM 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 IRM chain.

IRM thesis for this strangle

The market-implied 1-standard-deviation range for IRM extends from approximately $116.44 on the downside to $141.08 on the upside. A IRM 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 IRM IV rank near 42.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on IRM should anchor more to the directional view and the expected-move geometry. As a Real Estate name, IRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRM-specific events.

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

Frequently asked questions

What is a strangle on IRM?: A strangle on IRM is the strangle strategy applied to IRM (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 IRM stock trading near $128.76, the strikes shown on this page are snapped to the nearest listed IRM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IRM 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 IRM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 33.37%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$520.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IRM strangle?: The breakeven for the IRM strangle priced on this page is roughly $116.80 and $140.20 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 IRM market-implied 1-standard-deviation expected move is approximately 9.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on IRM?: Strangles on IRM 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 IRM chain.
How does current IRM implied volatility affect this strangle?: IRM ATM IV is at 33.37% with IV rank near 42.36%, 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.