How are LRCX 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 LRCX strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,870.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LRCX strangle?

The breakeven for the LRCX strangle priced on this page is roughly $286.30 and $378.70 at expiration, derived from the August 14, 2026 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 LRCX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LRCX implied volatility affect this strangle?

LRCX ATM IV is at 59.70% with IV rank near 40.64%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

LRCX Strangle Strategy

LRCX (Lam Research Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Lam Research Corporation is a prominent supplier of equipment vital for semiconductor processing, encompassing its design, production, sales, repair, and ongoing maintenance. These sophisticated systems are fundamental for the creation of integrated circuits. The company's extensive product catalog features a variety of deposition technologies. For tungsten metallization, they provide ALTUS systems that deposit conformal films. SABRE products excel in electrochemical deposition, crucial for copper interconnect transitions and enabling copper damascene manufacturing. SOLA utilizes ultraviolet thermal processing for film treatments, while VECTOR delivers plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition (ALD) solutions.

LRCX (Lam Research Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $407.82B, a trailing P/E of 56.33, a beta of 1.87 versus the broader market, a 52-week range of 94.11-438.5, average daily share volume of 11.0M, a public-listing history dating back to 1984, approximately 19K full-time employees. These structural characteristics shape how LRCX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.87 indicates LRCX 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 56.33 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. LRCX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on LRCX?

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.

LRCX snapshot

As of August 14, 2026, spot at $331.57, ATM IV 59.70%, IV rank 40.64%, expected move 17.12%. The strangle on LRCX below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this strangle structure on LRCX specifically: LRCX IV at 59.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 17.12% (roughly $56.75 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LRCX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LRCX should anchor to the underlying notional of $331.57 per share and to the trader's directional view on LRCX stock.

LRCX strangle setup

The LRCX strangle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LRCX at $331.57 on that close, the first option leg uses a $350.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LRCX chain at a 28-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 LRCX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$350.00	$14.90
Buy 1	Put	$315.00	$13.80

LRCX strangle risk and reward

Net Premium / Debit: -$2,870.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,870.00
Breakeven(s): $286.30, $378.70
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.

LRCX strangle payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$28,629.00
$73.32	-77.9%	+$21,297.91
$146.63	-55.8%	+$13,966.83
$219.94	-33.7%	+$6,635.74
$293.25	-11.6%	-$695.34
$366.56	+10.6%	-$1,213.57
$439.88	+32.7%	+$6,117.51
$513.19	+54.8%	+$13,448.60
$586.50	+76.9%	+$20,779.68
$659.81	+99.0%	+$28,110.77

When traders use strangle on LRCX

Strangles on LRCX 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 LRCX chain.

LRCX thesis for this strangle

The market-implied 1-standard-deviation range for LRCX extends from approximately $274.82 on the downside to $388.32 on the upside. A LRCX 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 LRCX IV rank near 40.64% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on LRCX should anchor more to the directional view and the expected-move geometry. As a Technology name, LRCX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LRCX-specific events.

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

Frequently asked questions

What is a strangle on LRCX?: A strangle on LRCX is the strangle strategy applied to LRCX (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 LRCX stock at $331.57 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LRCX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are LRCX 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 LRCX strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,870.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LRCX strangle?: The breakeven for the LRCX strangle priced on this page is roughly $286.30 and $378.70 at expiration, derived from the August 14, 2026 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 LRCX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on LRCX?: Strangles on LRCX 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 LRCX chain.
How does current LRCX implied volatility affect this strangle?: LRCX ATM IV is at 59.70% with IV rank near 40.64%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.