How are LYEL 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 LYEL strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 384.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$777.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LYEL strangle?

The breakeven for the LYEL strangle priced on this page is roughly $5.23 and $21.77 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 LYEL market-implied 1-standard-deviation expected move is approximately 110.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LYEL implied volatility affect this strangle?

LYEL ATM IV is at 384.10% with IV rank near 89.23%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

LYEL Strangle Strategy

LYEL (Lyell Immunopharma, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Lyell Immunopharma, Inc., a clinical-stage cell therapy company, develops chimeric antigen receptor (CAR) T-cell product candidates for patients with hematologic malignancies and solid tumors. The company’s lead product candidate include rondecabtagene autoleucel, an autologous dual-targeting CD19/CD20 CAR T-cell therapy in development, which is in pivotal PiNACLE trial in the 3L+ setting and in a Phase 1/2 clinical trial in the 2L setting, as well as a second pivotal trial, PiNACLE-H2H, which is a Phase 3 head-to-head CAR T cell therapy randomized controlled trial of ronde-cel for LBCL in the 2L setting for the treatment of large B-cell lymphoma; and LYL273, a GCC-targeted CAR T-cell product candidate enhanced with CD19 CAR expression and controlled cytokine release designed to improve CAR T-cell expansion, immune cell infiltration, and cancer cell killing in the hostile solid tumor microenvironment, which is in Phase 1 clinical trial for the treatment of refractory metastatic colorectal cancer. The company develops therapies using various approaches, such as c-Jun overexpression and NR4A3 gene knockout, to endow functional resistance to exhaustion; Epi-R to generate population of stem-like T cells with reduced exhaustion and improved proliferation and antitumor activity; and CD62L positive enrichment to generate CAR T cells with enhanced antitumor activity. Lyell Immunopharma, Inc. was incorporated in 2018 and is headquartered in South San Francisco, California.

LYEL (Lyell Immunopharma, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $270.9M, a beta of -0.09 versus the broader market, a 52-week range of 8.632-45, average daily share volume of 128K, a public-listing history dating back to 2021, approximately 161 full-time employees. These structural characteristics shape how LYEL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.09 indicates LYEL 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 LYEL?

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 LYEL snapshot

As of June 30, 2026, spot at $13.53, ATM IV 384.10%, IV rank 89.23%, expected move 110.12%. The strangle on LYEL 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 17-day expiry.

Why this strangle structure on LYEL specifically: LYEL IV at 384.10% is rich versus its 1-year range, which makes a premium-buying LYEL strangle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 110.12% (roughly $14.90 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LYEL expiries trade a higher absolute premium for lower per-day decay. Position sizing on LYEL should anchor to the underlying notional of $13.53 per share and to the trader's directional view on LYEL stock.

LYEL strangle setup

The LYEL 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 LYEL near $13.53, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LYEL chain at a 17-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 LYEL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$14.00	$3.99
Buy 1	Put	$13.00	$3.78

LYEL strangle risk and reward

Net Premium / Debit: -$777.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$777.00
Breakeven(s): $5.23, $21.77
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.

LYEL strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on LYEL. 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	-99.9%	+$522.00
$3.00	-77.8%	+$222.95
$5.99	-55.7%	-$76.09
$8.98	-33.6%	-$375.14
$11.97	-11.5%	-$674.18
$14.96	+10.6%	-$680.77
$17.95	+32.7%	-$381.73
$20.94	+54.8%	-$82.68
$23.93	+76.9%	+$216.36
$26.92	+99.0%	+$515.41

When traders use strangle on LYEL

Strangles on LYEL 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 LYEL chain.

LYEL thesis for this strangle

The market-implied 1-standard-deviation range for LYEL extends from approximately $-1.37 on the downside to $28.43 on the upside. A LYEL 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 LYEL IV rank near 89.23% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on LYEL at 384.10%. As a Healthcare name, LYEL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LYEL-specific events.

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

Frequently asked questions

What is a strangle on LYEL?: A strangle on LYEL is the strangle strategy applied to LYEL (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 LYEL stock trading near $13.53, the strikes shown on this page are snapped to the nearest listed LYEL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LYEL 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 LYEL strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 384.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$777.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LYEL strangle?: The breakeven for the LYEL strangle priced on this page is roughly $5.23 and $21.77 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 LYEL market-implied 1-standard-deviation expected move is approximately 110.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on LYEL?: Strangles on LYEL 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 LYEL chain.
How does current LYEL implied volatility affect this strangle?: LYEL ATM IV is at 384.10% with IV rank near 89.23%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.