How are OLLI 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 OLLI strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 52.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$845.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OLLI strangle?

The breakeven for the OLLI strangle priced on this page is roughly $61.55 and $88.45 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 OLLI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OLLI implied volatility affect this strangle?

OLLI ATM IV is at 52.70% with IV rank near 47.07%, 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.

OLLI Strangle Strategy

OLLI (Ollie's Bargain Outlet Holdings, Inc.), in the Consumer Defensive sector, (Discount Stores industry), listed on NASDAQ.

Ollie's Bargain Outlet Holdings, Inc. operates as a leading discount retailer, offering a wide variety of brand-name goods. The company's diverse inventory includes home essentials such as housewares, bed and bath products, and floor coverings, as well as food items, health and beauty aids, books, stationery, toys, and electronics. Additionally, they stock hardware, confectionery, apparel, sporting goods, pet supplies, and lawn and garden items. Ollie's markets its products under various proprietary labels, including Ollie's, Ollie's Bargain Outlet, Good Stuff Cheap, Ollie's Army, Real Brands Real Cheap!, Real Brands! Real Bargains, Sarasota Breeze, Steelton Tools, American Way, and Middleton Home. As of August 3, 2022, the company maintained 450 retail locations across 29 states, covering approximately half of the United States.

OLLI (Ollie's Bargain Outlet Holdings, Inc.) trades in the Consumer Defensive sector, specifically Discount Stores, with a market capitalization of approximately $4.62B, a trailing P/E of 18.67, a beta of 0.50 versus the broader market, a 52-week range of 60.29-140.54, average daily share volume of 1.9M, a public-listing history dating back to 2015, approximately 13K full-time employees. These structural characteristics shape how OLLI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.50 indicates OLLI 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 OLLI?

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.

OLLI snapshot

As of August 14, 2026, spot at $76.25, ATM IV 52.70%, IV rank 47.07%, expected move 15.11%. The strangle on OLLI 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 63-day expiry.

Why this strangle structure on OLLI specifically: OLLI IV at 52.70% 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 15.11% (roughly $11.52 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OLLI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OLLI should anchor to the underlying notional of $76.25 per share and to the trader's directional view on OLLI stock.

OLLI strangle setup

The OLLI 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 OLLI at $76.25 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OLLI chain at a 63-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 OLLI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$80.00	$5.20
Buy 1	Put	$70.00	$3.25

OLLI strangle risk and reward

Net Premium / Debit: -$845.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$845.00
Breakeven(s): $61.55, $88.45
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.

OLLI strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on OLLI. 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%	+$6,154.00
$16.87	-77.9%	+$4,468.18
$33.73	-55.8%	+$2,782.36
$50.58	-33.7%	+$1,096.54
$67.44	-11.6%	-$589.28
$84.30	+10.6%	-$414.90
$101.16	+32.7%	+$1,270.91
$118.02	+54.8%	+$2,956.73
$134.88	+76.9%	+$4,642.55
$151.73	+99.0%	+$6,328.37

When traders use strangle on OLLI

Strangles on OLLI 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 OLLI chain.

OLLI thesis for this strangle

The market-implied 1-standard-deviation range for OLLI extends from approximately $64.73 on the downside to $87.77 on the upside. A OLLI 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 OLLI IV rank near 47.07% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on OLLI should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, OLLI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OLLI-specific events.

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

Frequently asked questions

What is a strangle on OLLI?: A strangle on OLLI is the strangle strategy applied to OLLI (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 OLLI stock at $76.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OLLI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are OLLI 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 OLLI strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 52.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$845.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OLLI strangle?: The breakeven for the OLLI strangle priced on this page is roughly $61.55 and $88.45 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 OLLI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on OLLI?: Strangles on OLLI 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 OLLI chain.
How does current OLLI implied volatility affect this strangle?: OLLI ATM IV is at 52.70% with IV rank near 47.07%, 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.