KMDA Strangle Strategy
KMDA (Kamada Ltd.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
Kamada Ltd. is a biopharmaceutical firm focused on developing, manufacturing, and distributing protein therapeutics derived from human plasma. The company operates through two core business areas: its proprietary product segment and its distribution division. Its own manufactured portfolio includes KAMRAB/KEDRAB for rabies prevention, CYTOGAM to prevent cytomegalovirus disease in transplant recipients, WINRHO SDF for immune thrombocytopenic purpura and Rhesus (Rh) isoimmunization, HEPAGAM B for hepatitis B recurrence prevention following liver transplants and for post-exposure prophylaxis, VARIZIG for post-exposure chickenpox prophylaxis, and GLASSIA for intravenous alpha-1 antitrypsin deficiency (AATD). Kamada also produces KamRho (D) for the prophylaxis of hemolytic disease of newborns and immune thrombocytopenic purpura, along with a specific antiserum for Vipera palaestinae and Echis coloratus snake bites. Additionally, the company distributes a wide array of third-party pharmaceutical products, encompassing treatments like BRAMITOB for chronic pulmonary infections, FOSTER for asthma, PROVOCHOLINE for diagnosing bronchial airway hyperactivity, and specialized therapies such as IVIG for immunodeficiency, VARITECT for chickenpox and zoster herpes, and various factors for hemophilia A and B, among numerous others for conditions like hepatitis B, cytomegalovirus, angioedema, Japanese encephalitis, and prostate cancer. Kamada markets its offerings in the United States through strategic partners and internationally via a network of distributors.
KMDA (Kamada Ltd.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $418.9M, a trailing P/E of 21.04, a beta of 0.15 versus the broader market, a 52-week range of 6.5-9.35, average daily share volume of 48K, 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 0.15 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 June 26, 2026, spot at $7.27, ATM IV 15.00%, IV rank 0.11%, expected move 4.30%. 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 21-day expiry.
Why this strangle structure on KMDA specifically: KMDA IV at 15.00% 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 4.30% (roughly $0.31 on the underlying). The 21-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 $7.27 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 $7.27, the first option leg uses a $7.63 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 21-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 | $7.63 | N/A |
| Buy 1 | Put | $6.91 | 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 $6.96 on the downside to $7.58 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 0.11% 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 15.00%. 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 $7.27, 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 15.00%), 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 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 4.30%; 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 15.00% with IV rank near 0.11%, 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.