KMDA Strangle Strategy

KMDA (Kamada Ltd.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

Kamada Ltd. provides plasma-derived protein therapeutics. It operates in two segments, Proprietary Products and Distribution. The company offers KAMRAB/KEDRAB for prophylaxis of rabies disease; CYTOGAM for prophylaxis of cytomegalovirus disease in kidney, lung, liver, pancreas, heart, and heart/lung transplant; WINRHO SDF for immune thrombocytopenic purpura and suppression of rhesus isoimmunization; HEPAGAM B for prevention of hepatitis B recurrence liver transplants and post-exposure prophylaxis; VARIZIG for post exposure prophylaxis of varicella; and GLASSIA for intravenous AATD. It also provides KamRho (D) IM for prophylaxis of hemolytic disease of newborns; KamRho (D) IV for immune thermobocytopunic purpura; and snake bite antiserum to treat snake bites by the vipera palaestinae and echis coloratus. In addition, the company distributes BRAMITOB to manage chronic pulmonary infection; FOSTER to treat asthma; PROVOCHOLINE for the diagnosis of bronchial airway hyperactivity; AEROBIKA, an OPEP device; RUPAFIN for Allergic rhinitis and Urticaria; IVIG for immunodeficiency-related conditions; VARITECT for chicken pox and zoster herpes; ZUTECTRA and HEPATECT CP for hepatitis B; MEGALOTECT CP for cytomegalovirus virus; RUCONEST for angioedema attacks; heparin sodium injection for thrombo-embolic disorders and prophylaxis of deep vein thrombosis and thromboembolic events; ALBUMIN for blood plasma; Factor VIII for hemophilia type A; and Factor IX for hemophilia type B. Further, it offers IXIARO for Japanese encephalitis; VIVOTIF for Salmonella Typhi; PROCYSBI for nephropathic cystinosis; LAMZEDE for alpha-mannosidosis ; and ELIGARD for prostate cancer.

KMDA (Kamada Ltd.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $453.4M, a trailing P/E of 22.37, a beta of 0.20 versus the broader market, a 52-week range of 6.5-9.35, average daily share volume of 60K, a public-listing history dating back to 2013, approximately 420 full-time employees. These structural characteristics shape how KMDA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.20 indicates KMDA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KMDA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on KMDA?

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 KMDA snapshot

As of May 15, 2026, spot at $7.76, ATM IV 96.40%, IV rank 26.07%, expected move 27.64%. The strangle on KMDA 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 KMDA specifically: KMDA IV at 96.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a KMDA strangle, with a market-implied 1-standard-deviation move of approximately 27.64% (roughly $2.14 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 KMDA expiries trade a higher absolute premium for lower per-day decay. Position sizing on KMDA should anchor to the underlying notional of $7.76 per share and to the trader's directional view on KMDA stock.

KMDA strangle setup

The KMDA 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 KMDA near $7.76, the first option leg uses a $8.15 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KMDA 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 KMDA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$8.15	N/A
Buy 1	Put	$7.37	N/A

KMDA 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.

KMDA strangle payoff curve

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

Strangles on KMDA 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 KMDA chain.

KMDA thesis for this strangle

The market-implied 1-standard-deviation range for KMDA extends from approximately $5.62 on the downside to $9.90 on the upside. A KMDA 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 KMDA IV rank near 26.07% 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 KMDA at 96.40%. As a Healthcare name, KMDA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KMDA-specific events.

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

Frequently asked questions

What is a strangle on KMDA?: A strangle on KMDA is the strangle strategy applied to KMDA (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 KMDA stock trading near $7.76, the strikes shown on this page are snapped to the nearest listed KMDA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KMDA 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 KMDA strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 96.40%), 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 KMDA strangle?: The breakeven for the KMDA 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 KMDA market-implied 1-standard-deviation expected move is approximately 27.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on KMDA?: Strangles on KMDA 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 KMDA chain.
How does current KMDA implied volatility affect this strangle?: KMDA ATM IV is at 96.40% with IV rank near 26.07%, 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.