How are MEDP 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 MEDP strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,110.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MEDP strangle?

The breakeven for the MEDP strangle priced on this page is roughly $378.90 and $461.10 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 MEDP market-implied 1-standard-deviation expected move is approximately 10.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MEDP implied volatility affect this strangle?

MEDP ATM IV is at 36.60% with IV rank near 18.76%, 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.

MEDP Strangle Strategy

MEDP (Medpace Holdings, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.

Medpace Holdings, Inc. provides clinical research-based drug and medical device development services in North America, Europe, and Asia. It offers a suite of services supporting the clinical development process from Phase I to Phase IV in various therapeutic areas. The company also provides clinical development services to the pharmaceutical, biotechnology, and medical device industries; and development plan design, coordinated central laboratory, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, and post-marketing clinical support services. In addition, it offers bio-analytical laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The company was founded in 1992 and is based in Cincinnati, Ohio.

MEDP (Medpace Holdings, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $12.10B, a trailing P/E of 26.18, a beta of 1.19 versus the broader market, a 52-week range of 284.48-628.916, average daily share volume of 398K, a public-listing history dating back to 2016, approximately 6K full-time employees. These structural characteristics shape how MEDP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.19 places MEDP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a strangle on MEDP?

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 MEDP snapshot

As of May 15, 2026, spot at $417.39, ATM IV 36.60%, IV rank 18.76%, expected move 10.49%. The strangle on MEDP 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 MEDP specifically: MEDP IV at 36.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a MEDP strangle, with a market-implied 1-standard-deviation move of approximately 10.49% (roughly $43.80 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 MEDP expiries trade a higher absolute premium for lower per-day decay. Position sizing on MEDP should anchor to the underlying notional of $417.39 per share and to the trader's directional view on MEDP stock.

MEDP strangle setup

The MEDP 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 MEDP near $417.39, the first option leg uses a $440.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MEDP 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 MEDP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$440.00	$10.70
Buy 1	Put	$400.00	$10.40

MEDP strangle risk and reward

Net Premium / Debit: -$2,110.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,110.00
Breakeven(s): $378.90, $461.10
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.

MEDP strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on MEDP. 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%	+$37,889.00
$92.30	-77.9%	+$28,660.39
$184.58	-55.8%	+$19,431.77
$276.87	-33.7%	+$10,203.16
$369.15	-11.6%	+$974.55
$461.44	+10.6%	+$34.07
$553.73	+32.7%	+$9,262.68
$646.01	+54.8%	+$18,491.29
$738.30	+76.9%	+$27,719.90
$830.59	+99.0%	+$36,948.52

When traders use strangle on MEDP

Strangles on MEDP 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 MEDP chain.

MEDP thesis for this strangle

The market-implied 1-standard-deviation range for MEDP extends from approximately $373.59 on the downside to $461.19 on the upside. A MEDP 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 MEDP IV rank near 18.76% 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 MEDP at 36.60%. As a Healthcare name, MEDP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MEDP-specific events.

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

Frequently asked questions

What is a strangle on MEDP?: A strangle on MEDP is the strangle strategy applied to MEDP (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 MEDP stock trading near $417.39, the strikes shown on this page are snapped to the nearest listed MEDP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MEDP 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 MEDP strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,110.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MEDP strangle?: The breakeven for the MEDP strangle priced on this page is roughly $378.90 and $461.10 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 MEDP market-implied 1-standard-deviation expected move is approximately 10.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on MEDP?: Strangles on MEDP 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 MEDP chain.
How does current MEDP implied volatility affect this strangle?: MEDP ATM IV is at 36.60% with IV rank near 18.76%, 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.