How are NKE 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 NKE strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.67%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$131.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NKE strangle?

The breakeven for the NKE strangle priced on this page is roughly $37.69 and $44.31 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 NKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NKE implied volatility affect this strangle?

NKE ATM IV is at 31.67% with IV rank near 20.92%, 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.

NKE Strangle Strategy

NKE (NIKE, Inc.), in the Consumer Cyclical sector, (Apparel - Footwear & Accessories industry), listed on NYSE.

NIKE, Inc., through its various subsidiaries, operates as a global enterprise focused on the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories for all ages and genders. Beyond its primary offerings, the company provides a range of athletic and casual footwear, clothing, and accessories under the notable Jumpman trademark. It also distributes a variety of casual sneakers, apparel, and accessories, featuring well-known brands like Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell. Under the NIKE brand itself, the company supplies a comprehensive line of performance sports gear and accessories, such as bags, socks, sports balls, eyewear, timepieces, digital devices, bats, gloves, and protective equipment. Additionally, NIKE sells various plastic products to other manufacturers. The company also markets sportswear adorned with licensed logos from college and professional sports teams and leagues.

NKE (NIKE, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Footwear & Accessories, with a market capitalization of approximately $59.95B, a trailing P/E of 19.32, a beta of 1.12 versus the broader market, a 52-week range of 40-80.17, average daily share volume of 24.5M, a public-listing history dating back to 1980, approximately 73K full-time employees. These structural characteristics shape how NKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.12 places NKE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NKE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on NKE?

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.

NKE snapshot

As of August 14, 2026, spot at $40.75, ATM IV 31.67%, IV rank 20.92%, expected move 9.08%. The strangle on NKE 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 NKE specifically: NKE IV at 31.67% is on the cheap side of its 1-year range, which favors premium-buying structures like a NKE strangle, with a market-implied 1-standard-deviation move of approximately 9.08% (roughly $3.70 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 NKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on NKE should anchor to the underlying notional of $40.75 per share and to the trader's directional view on NKE stock.

NKE strangle setup

The NKE 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 NKE at $40.75 on that close, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NKE 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 NKE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$43.00	$0.54
Buy 1	Put	$39.00	$0.77

NKE strangle risk and reward

Net Premium / Debit: -$131.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$131.00
Breakeven(s): $37.69, $44.31
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.

NKE strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on NKE. 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%	+$3,768.00
$9.02	-77.9%	+$2,867.11
$18.03	-55.8%	+$1,966.21
$27.04	-33.7%	+$1,065.32
$36.05	-11.5%	+$164.42
$45.05	+10.6%	+$74.47
$54.06	+32.7%	+$975.37
$63.07	+54.8%	+$1,876.26
$72.08	+76.9%	+$2,777.16
$81.09	+99.0%	+$3,678.05

When traders use strangle on NKE

Strangles on NKE 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 NKE chain.

NKE thesis for this strangle

The market-implied 1-standard-deviation range for NKE extends from approximately $37.05 on the downside to $44.45 on the upside. A NKE 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 NKE IV rank near 20.92% 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 NKE at 31.67%. As a Consumer Cyclical name, NKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NKE-specific events.

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

Frequently asked questions

What is a strangle on NKE?: A strangle on NKE is the strangle strategy applied to NKE (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 NKE stock at $40.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NKE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NKE 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 NKE strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.67%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$131.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NKE strangle?: The breakeven for the NKE strangle priced on this page is roughly $37.69 and $44.31 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 NKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on NKE?: Strangles on NKE 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 NKE chain.
How does current NKE implied volatility affect this strangle?: NKE ATM IV is at 31.67% with IV rank near 20.92%, 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.