How are IRMD 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 IRMD strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$615.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IRMD strangle?

The breakeven for the IRMD strangle priced on this page is roughly $73.85 and $96.15 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The IRMD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IRMD implied volatility affect this strangle?

IRMD ATM IV is at 35.50% with IV rank near 3.63%, 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.

IRMD Strangle Strategy

IRMD (IRadimed Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

IRADIMED CORPORATION specializes in the engineering, production, and distribution of medical devices specifically designed for compatibility with magnetic resonance imaging (MRI) environments. The company supplies these specialized products, alongside their related accessories and support services, to both U.S. and international markets. Key offerings include the MRidium MRI-compatible intravenous (IV) infusion pump system, which comes with disposable tubing sets, and an MRI-compatible patient vital signs monitoring system. Furthermore, IRADIMED provides a range of complementary items such as non-magnetic IV poles, wireless remote displays/controls, side car pump modules, dose error reduction systems, and SpO2 monitoring solutions with sensors. Their clientele primarily consists of hospitals, acute care facilities, and outpatient imaging centers. Sales are conducted via direct field representatives, regional sales directors, clinical support specialists, and independent distributors.

IRMD (IRadimed Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.12B, a trailing P/E of 48.46, a beta of 0.91 versus the broader market, a 52-week range of 67.842-107.9, average daily share volume of 131K, a public-listing history dating back to 2014, approximately 166 full-time employees. These structural characteristics shape how IRMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places IRMD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 48.46 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. IRMD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on IRMD?

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.

IRMD snapshot

As of August 14, 2026, spot at $86.41, ATM IV 35.50%, IV rank 3.63%, expected move 10.18%. The strangle on IRMD below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.

Why this strangle structure on IRMD specifically: IRMD IV at 35.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a IRMD strangle, with a market-implied 1-standard-deviation move of approximately 10.18% (roughly $8.79 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IRMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRMD should anchor to the underlying notional of $86.41 per share and to the trader's directional view on IRMD stock.

IRMD strangle setup

The IRMD strangle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With IRMD at $86.41 on that close, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRMD chain at a 63-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 IRMD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$90.00	$3.85
Buy 1	Put	$80.00	$2.30

IRMD strangle risk and reward

Net Premium / Debit: -$615.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$615.00
Breakeven(s): $73.85, $96.15
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.

IRMD strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on IRMD. 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%	+$7,384.00
$19.11	-77.9%	+$5,473.54
$38.22	-55.8%	+$3,563.08
$57.32	-33.7%	+$1,652.61
$76.43	-11.6%	-$257.85
$95.53	+10.6%	-$61.69
$114.64	+32.7%	+$1,848.77
$133.74	+54.8%	+$3,759.24
$152.85	+76.9%	+$5,669.70
$171.95	+99.0%	+$7,580.16

When traders use strangle on IRMD

Strangles on IRMD 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 IRMD chain.

IRMD thesis for this strangle

The market-implied 1-standard-deviation range for IRMD extends from approximately $77.62 on the downside to $95.20 on the upside. A IRMD 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 IRMD IV rank near 3.63% 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 IRMD at 35.50%. As a Healthcare name, IRMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRMD-specific events.

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

Frequently asked questions

What is a strangle on IRMD?: A strangle on IRMD is the strangle strategy applied to IRMD (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 IRMD stock at $86.41 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IRMD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IRMD 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 IRMD strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$615.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IRMD strangle?: The breakeven for the IRMD strangle priced on this page is roughly $73.85 and $96.15 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The IRMD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on IRMD?: Strangles on IRMD 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 IRMD chain.
How does current IRMD implied volatility affect this strangle?: IRMD ATM IV is at 35.50% with IV rank near 3.63%, 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.