How are KOPN 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 KOPN strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 133.21%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KOPN strangle?

The breakeven for the KOPN strangle priced on this page is roughly $4.38 and $6.13 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 KOPN market-implied 1-standard-deviation expected move is approximately 38.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KOPN implied volatility affect this strangle?

KOPN ATM IV is at 133.21% with IV rank near 27.96%, 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.

KOPN Strangle Strategy

KOPN (Kopin Corporation), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.

Kopin Corporation, together with its subsidiaries, invents, develops, manufactures, and sells microdisplays, subassemblies, head-mounted and hand-held systems, and related components for defense, enterprise, industrial, and consumer products in the United States, the Asia-Pacific, Europe, and internationally. It offers miniature active-matrix liquid crystal displays, liquid crystal on silicon displays/spatial light modulators, organic light emitting diode displays, application specific integrated circuits, backlights, and optical lenses; and headset systems. The company's products are used in soldier, avionic, armored vehicle and training, and simulation defense applications; industrial, public safety, and medical headsets; 3D optical inspection systems; and consumer augmented reality and virtual reality wearable headsets systems. Kopin Corporation was incorporated in 1984 and is headquartered in Westborough, Massachusetts.

KOPN (Kopin Corporation) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $918.3M, a trailing P/E of 485.38, a beta of 3.40 versus the broader market, a 52-week range of 1.23-6.45, average daily share volume of 5.9M, a public-listing history dating back to 1992, approximately 181 full-time employees. These structural characteristics shape how KOPN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.40 indicates KOPN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 485.38 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.

What is a strangle on KOPN?

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 KOPN snapshot

As of May 15, 2026, spot at $5.05, ATM IV 133.21%, IV rank 27.96%, expected move 38.19%. The strangle on KOPN 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 7-day expiry.

Why this strangle structure on KOPN specifically: KOPN IV at 133.21% is on the cheap side of its 1-year range, which favors premium-buying structures like a KOPN strangle, with a market-implied 1-standard-deviation move of approximately 38.19% (roughly $1.93 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KOPN expiries trade a higher absolute premium for lower per-day decay. Position sizing on KOPN should anchor to the underlying notional of $5.05 per share and to the trader's directional view on KOPN stock.

KOPN strangle setup

The KOPN 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 KOPN near $5.05, the first option leg uses a $5.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KOPN chain at a 7-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 KOPN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$5.50	$0.25
Buy 1	Put	$5.00	$0.38

KOPN strangle risk and reward

Net Premium / Debit: -$62.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$62.50
Breakeven(s): $4.38, $6.13
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.

KOPN strangle payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.8%	+$436.50
$1.13	-77.7%	+$324.95
$2.24	-55.6%	+$213.40
$3.36	-33.5%	+$101.86
$4.47	-11.4%	-$9.69
$5.59	+10.6%	-$53.76
$6.70	+32.7%	+$57.79
$7.82	+54.8%	+$169.33
$8.93	+76.9%	+$280.88
$10.05	+99.0%	+$392.43

When traders use strangle on KOPN

Strangles on KOPN 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 KOPN chain.

KOPN thesis for this strangle

The market-implied 1-standard-deviation range for KOPN extends from approximately $3.12 on the downside to $6.98 on the upside. A KOPN 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 KOPN IV rank near 27.96% 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 KOPN at 133.21%. As a Technology name, KOPN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KOPN-specific events.

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

Frequently asked questions

What is a strangle on KOPN?: A strangle on KOPN is the strangle strategy applied to KOPN (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 KOPN stock trading near $5.05, the strikes shown on this page are snapped to the nearest listed KOPN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KOPN 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 KOPN strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 133.21%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KOPN strangle?: The breakeven for the KOPN strangle priced on this page is roughly $4.38 and $6.13 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 KOPN market-implied 1-standard-deviation expected move is approximately 38.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on KOPN?: Strangles on KOPN 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 KOPN chain.
How does current KOPN implied volatility affect this strangle?: KOPN ATM IV is at 133.21% with IV rank near 27.96%, 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.