KYMR Strangle Strategy
KYMR (Kymera Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Kymera Therapeutics, Inc., a biopharmaceutical company, focuses on discovering and developing novel small molecule therapeutics that selectively degrade disease-causing proteins by harnessing the body's own natural protein degradation system. It engages in developing IRAK4 program, which is in Phase I clinical trial for the treatment of immunology-inflammation diseases, including hidradenitis suppurativa, atopic dermatitis, macrophage activation syndrome, general pustular psoriasis, and rheumatoid arthritis; IRAKIMiD program to treat MYD88-mutated diffuse large B cell lymphoma; STAT3 program for the treatment of hematologic malignancies and solid tumors, as well as autoimmune diseases and fibrosis; and MDM2 program to treat hematological malignancies and solid tumors. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.
KYMR (Kymera Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $7.04B, a beta of 2.06 versus the broader market, a 52-week range of 28.06-103, average daily share volume of 650K, a public-listing history dating back to 2020, approximately 208 full-time employees. These structural characteristics shape how KYMR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.06 indicates KYMR 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 KYMR?
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 KYMR snapshot
As of May 13, 2026, spot at $85.46, ATM IV 57.90%, IV rank 10.13%, expected move 16.60%. The strangle on KYMR 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 98-day expiry.
Why this strangle structure on KYMR specifically: KYMR IV at 57.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a KYMR strangle, with a market-implied 1-standard-deviation move of approximately 16.60% (roughly $14.19 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KYMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on KYMR should anchor to the underlying notional of $85.46 per share and to the trader's directional view on KYMR stock.
KYMR strangle setup
The KYMR 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 KYMR near $85.46, 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 KYMR chain at a 98-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 KYMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $90.00 | $7.60 |
| Buy 1 | Put | $80.00 | $8.55 |
KYMR strangle risk and reward
- Net Premium / Debit
- -$1,615.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,615.00
- Breakeven(s)
- $63.85, $106.15
- 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.
KYMR strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on KYMR. 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 | -100.0% | +$6,384.00 |
| $18.90 | -77.9% | +$4,494.54 |
| $37.80 | -55.8% | +$2,605.09 |
| $56.69 | -33.7% | +$715.63 |
| $75.59 | -11.6% | -$1,173.83 |
| $94.48 | +10.6% | -$1,166.71 |
| $113.38 | +32.7% | +$722.74 |
| $132.27 | +54.8% | +$2,612.20 |
| $151.17 | +76.9% | +$4,501.66 |
| $170.06 | +99.0% | +$6,391.12 |
When traders use strangle on KYMR
Strangles on KYMR 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 KYMR chain.
KYMR thesis for this strangle
The market-implied 1-standard-deviation range for KYMR extends from approximately $71.27 on the downside to $99.65 on the upside. A KYMR 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 KYMR IV rank near 10.13% 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 KYMR at 57.90%. As a Healthcare name, KYMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KYMR-specific events.
KYMR 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. KYMR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KYMR alongside the broader basket even when KYMR-specific fundamentals are unchanged. Always rebuild the position from current KYMR chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on KYMR?
- A strangle on KYMR is the strangle strategy applied to KYMR (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 KYMR stock trading near $85.46, the strikes shown on this page are snapped to the nearest listed KYMR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KYMR 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 KYMR strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 57.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,615.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KYMR strangle?
- The breakeven for the KYMR strangle priced on this page is roughly $63.85 and $106.15 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 KYMR market-implied 1-standard-deviation expected move is approximately 16.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on KYMR?
- Strangles on KYMR 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 KYMR chain.
- How does current KYMR implied volatility affect this strangle?
- KYMR ATM IV is at 57.90% with IV rank near 10.13%, 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.