KRNT Strangle Strategy
KRNT (Kornit Digital Ltd.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Kornit Digital Ltd. is a global leader in providing advanced digital printing solutions tailored for the textile industry. With a global footprint, their operations extend across North America, Europe, the Middle East, Africa, and the Asia Pacific, specifically serving the fashion, apparel, and home decor sectors. The company's comprehensive portfolio encompasses state-of-the-art digital printing systems, proprietary inks and consumables, specialized software, and a suite of value-added services. Key offerings include their innovative direct-to-garment (DTG) printing platforms, designed to meet the needs of a wide spectrum of clients, from small-scale industrial operators to large-volume manufacturers. They also provide their unique NeoPigment ink series, the QuickP designer software, and essential services such as maintenance, technical support, expert consulting, and professional implementation. Kornit Digital caters to a diverse clientele, including textile decorators, e-commerce businesses, established brand owners, and contract printers.
KRNT (Kornit Digital Ltd.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $817.4M, a beta of 1.73 versus the broader market, a 52-week range of 11.93-19.78, average daily share volume of 267K, a public-listing history dating back to 2015, approximately 633 full-time employees. These structural characteristics shape how KRNT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.73 indicates KRNT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a strangle on KRNT?
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.
KRNT snapshot
As of August 14, 2026, spot at $17.95, ATM IV 63.10%, IV rank 10.24%, expected move 18.09%. The strangle on KRNT below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this strangle structure on KRNT specifically: KRNT IV at 63.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a KRNT strangle, with a market-implied 1-standard-deviation move of approximately 18.09% (roughly $3.25 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KRNT expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRNT should anchor to the underlying notional of $17.95 per share and to the trader's directional view on KRNT stock.
KRNT strangle setup
The KRNT 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 KRNT at $17.95 on that close, the first option leg uses a $18.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRNT chain at a 35-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 KRNT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $18.85 | N/A |
| Buy 1 | Put | $17.05 | N/A |
KRNT 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.
KRNT strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on KRNT. 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 KRNT
Strangles on KRNT 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 KRNT chain.
KRNT thesis for this strangle
The market-implied 1-standard-deviation range for KRNT extends from approximately $14.70 on the downside to $21.20 on the upside. A KRNT 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 KRNT IV rank near 10.24% 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 KRNT at 63.10%. As a Industrials name, KRNT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRNT-specific events.
KRNT 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. KRNT positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRNT alongside the broader basket even when KRNT-specific fundamentals are unchanged. Always rebuild the position from current KRNT chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on KRNT?
- A strangle on KRNT is the strangle strategy applied to KRNT (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 KRNT stock at $17.95 on the most recent close, the strikes shown on this page are snapped to the nearest listed KRNT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KRNT 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 KRNT strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 63.10%), 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 KRNT strangle?
- The breakeven for the KRNT strangle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 KRNT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on KRNT?
- Strangles on KRNT 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 KRNT chain.
- How does current KRNT implied volatility affect this strangle?
- KRNT ATM IV is at 63.10% with IV rank near 10.24%, 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.