How are LOPE 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 LOPE strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$505.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LOPE strangle?

The breakeven for the LOPE strangle priced on this page is roughly $149.95 and $175.05 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 LOPE market-implied 1-standard-deviation expected move is approximately 7.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LOPE implied volatility affect this strangle?

LOPE ATM IV is at 27.40% with IV rank near 18.67%, 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.

LOPE Strangle Strategy

LOPE (Grand Canyon Education, Inc.), in the Consumer Defensive sector, (Education & Training Services industry), listed on NASDAQ.

Grand Canyon Education, Inc. provides education services to colleges and universities in the United States. The company's technology services include learning management system, internal administration, infrastructure, and support services; academic services comprises program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites; and counseling services and support include admission, financial aid, and field experience and other counseling services. It also offers marketing and communication services, such as lead acquisition, digital communications strategy, brand identity, market research, media planning and strategy, video, and business intelligence and data science; and back-office services comprising finance and accounting, human resources, audit, and procurement services. The company, through its subsidiary, Orbis Education Services, LLC, supports healthcare education programs for 27 universities. Grand Canyon Education, Inc. was founded in 1949 and is based in Phoenix, Arizona.

LOPE (Grand Canyon Education, Inc.) trades in the Consumer Defensive sector, specifically Education & Training Services, with a market capitalization of approximately $4.26B, a trailing P/E of 19.55, a beta of 0.62 versus the broader market, a 52-week range of 149.37-223.04, average daily share volume of 297K, a public-listing history dating back to 2008, approximately 4K full-time employees. These structural characteristics shape how LOPE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.62 indicates LOPE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a strangle on LOPE?

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 LOPE snapshot

As of May 14, 2026, spot at $161.01, ATM IV 27.40%, IV rank 18.67%, expected move 7.86%. The strangle on LOPE 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 LOPE specifically: LOPE IV at 27.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a LOPE strangle, with a market-implied 1-standard-deviation move of approximately 7.86% (roughly $12.65 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 LOPE expiries trade a higher absolute premium for lower per-day decay. Position sizing on LOPE should anchor to the underlying notional of $161.01 per share and to the trader's directional view on LOPE stock.

LOPE strangle setup

The LOPE 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 LOPE near $161.01, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LOPE 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 LOPE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$170.00	$1.15
Buy 1	Put	$155.00	$3.90

LOPE strangle risk and reward

Net Premium / Debit: -$505.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$505.00
Breakeven(s): $149.95, $175.05
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.

LOPE strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on LOPE. 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%	+$14,994.00
$35.61	-77.9%	+$11,434.09
$71.21	-55.8%	+$7,874.18
$106.81	-33.7%	+$4,314.27
$142.41	-11.6%	+$754.36
$178.01	+10.6%	+$295.55
$213.60	+32.7%	+$3,855.46
$249.20	+54.8%	+$7,415.37
$284.80	+76.9%	+$10,975.28
$320.40	+99.0%	+$14,535.19

When traders use strangle on LOPE

Strangles on LOPE 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 LOPE chain.

LOPE thesis for this strangle

The market-implied 1-standard-deviation range for LOPE extends from approximately $148.36 on the downside to $173.66 on the upside. A LOPE 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 LOPE IV rank near 18.67% 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 LOPE at 27.40%. As a Consumer Defensive name, LOPE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LOPE-specific events.

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

Frequently asked questions

What is a strangle on LOPE?: A strangle on LOPE is the strangle strategy applied to LOPE (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 LOPE stock trading near $161.01, the strikes shown on this page are snapped to the nearest listed LOPE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LOPE 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 LOPE strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$505.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LOPE strangle?: The breakeven for the LOPE strangle priced on this page is roughly $149.95 and $175.05 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 LOPE market-implied 1-standard-deviation expected move is approximately 7.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on LOPE?: Strangles on LOPE 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 LOPE chain.
How does current LOPE implied volatility affect this strangle?: LOPE ATM IV is at 27.40% with IV rank near 18.67%, 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.