NEXT Strangle Strategy
NEXT (NextDecade Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NASDAQ.
NextDecade Corporation engages in the development activities related to the liquefaction and sale of liquefied natural gas (LNG); and capture and storage of CO2 emissions. The company focuses on the development activities on the Rio Grande LNG terminal facility located in the Port of Brownsville in southern Texas. It also focuses on a carbon capture and storage project (CCS project) at the terminal, as well as on other CCS projects with third-party industrial source facilities. The company was founded in 2010 is based in Houston, Texas.
NEXT (NextDecade Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $2.26B, a beta of 1.65 versus the broader market, a 52-week range of 4.75-12.12, average daily share volume of 4.8M, a public-listing history dating back to 2015, approximately 237 full-time employees. These structural characteristics shape how NEXT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.65 indicates NEXT 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 NEXT?
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 NEXT snapshot
As of May 15, 2026, spot at $9.10, ATM IV 66.80%, IV rank 49.73%, expected move 19.15%. The strangle on NEXT 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 NEXT specifically: NEXT IV at 66.80% 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 19.15% (roughly $1.74 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 NEXT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEXT should anchor to the underlying notional of $9.10 per share and to the trader's directional view on NEXT stock.
NEXT strangle setup
The NEXT 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 NEXT near $9.10, the first option leg uses a $9.56 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEXT 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 NEXT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.56 | N/A |
| Buy 1 | Put | $8.65 | N/A |
NEXT strangle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
NEXT strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on NEXT. 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.
When traders use strangle on NEXT
Strangles on NEXT 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 NEXT chain.
NEXT thesis for this strangle
The market-implied 1-standard-deviation range for NEXT extends from approximately $7.36 on the downside to $10.84 on the upside. A NEXT 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 NEXT IV rank near 49.73% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on NEXT should anchor more to the directional view and the expected-move geometry. As a Energy name, NEXT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEXT-specific events.
NEXT 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. NEXT positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEXT alongside the broader basket even when NEXT-specific fundamentals are unchanged. Always rebuild the position from current NEXT chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on NEXT?
- A strangle on NEXT is the strangle strategy applied to NEXT (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 NEXT stock trading near $9.10, the strikes shown on this page are snapped to the nearest listed NEXT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEXT 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 NEXT strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 66.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NEXT strangle?
- The breakeven for the NEXT strangle priced on this page is no defined breakeven on the modeled curve 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 NEXT market-implied 1-standard-deviation expected move is approximately 19.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on NEXT?
- Strangles on NEXT 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 NEXT chain.
- How does current NEXT implied volatility affect this strangle?
- NEXT ATM IV is at 66.80% with IV rank near 49.73%, 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.