How are OMER 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 OMER strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 114.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$150.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OMER strangle?

The breakeven for the OMER strangle priced on this page is roughly $7.50 and $11.50 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 OMER market-implied 1-standard-deviation expected move is approximately 32.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OMER implied volatility affect this strangle?

OMER ATM IV is at 114.30% with IV rank near 30.74%, 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.

OMER Strangle Strategy

OMER (Omeros Corporation), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Omeros Corporation is a biopharmaceutical firm with commercialized products, actively engaged in the discovery, development, and market introduction of both small-molecule and protein-based therapies, including treatments for rare diseases. The company's therapeutic endeavors primarily focus on inflammatory conditions, illnesses mediated by the complement system, cancers linked to immune system dysregulation, and disorders characterized by addiction or compulsion. Its robust clinical pipeline features several promising candidates. Narsoplimab (also known as OMS721 or MASP-2), a leading asset, has successfully concluded pivotal trials for hematopoietic stem-cell transplant-associated thrombotic microangiopathy (HSCT-TMA). This drug is also currently undergoing Phase III clinical evaluation for immunoglobulin A nephropathy (IgAN) and atypical hemolytic uremic syndrome (aHUS), in addition to a Phase II trial investigating its potential for treating COVID-19. Further expanding its clinical portfolio, Omeros is developing PPAR? (OMS405) in Phase II for opioid and nicotine dependence.

OMER (Omeros Corporation) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $627.5M, a trailing P/E of 7.24, a beta of 2.53 versus the broader market, a 52-week range of 2.95-17.65, average daily share volume of 1.6M, a public-listing history dating back to 2009, approximately 202 full-time employees. These structural characteristics shape how OMER stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.53 indicates OMER has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.24 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a strangle on OMER?

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 OMER snapshot

As of June 29, 2026, spot at $9.71, ATM IV 114.30%, IV rank 30.74%, expected move 32.77%. The strangle on OMER 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 18-day expiry.

Why this strangle structure on OMER specifically: OMER IV at 114.30% 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 32.77% (roughly $3.18 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OMER expiries trade a higher absolute premium for lower per-day decay. Position sizing on OMER should anchor to the underlying notional of $9.71 per share and to the trader's directional view on OMER stock.

OMER strangle setup

The OMER 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 OMER near $9.71, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OMER chain at a 18-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 OMER shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$10.00	$0.85
Buy 1	Put	$9.00	$0.65

OMER strangle risk and reward

Net Premium / Debit: -$150.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$150.00
Breakeven(s): $7.50, $11.50
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.

OMER strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on OMER. 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%	+$749.00
$2.16	-77.8%	+$534.42
$4.30	-55.7%	+$319.83
$6.45	-33.6%	+$105.25
$8.59	-11.5%	-$109.33
$10.74	+10.6%	-$76.09
$12.88	+32.7%	+$138.50
$15.03	+54.8%	+$353.08
$17.18	+76.9%	+$567.66
$19.32	+99.0%	+$782.25

When traders use strangle on OMER

Strangles on OMER 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 OMER chain.

OMER thesis for this strangle

The market-implied 1-standard-deviation range for OMER extends from approximately $6.53 on the downside to $12.89 on the upside. A OMER 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 OMER IV rank near 30.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on OMER should anchor more to the directional view and the expected-move geometry. As a Healthcare name, OMER options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OMER-specific events.

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

Frequently asked questions

What is a strangle on OMER?: A strangle on OMER is the strangle strategy applied to OMER (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 OMER stock trading near $9.71, the strikes shown on this page are snapped to the nearest listed OMER chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OMER 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 OMER strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 114.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$150.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OMER strangle?: The breakeven for the OMER strangle priced on this page is roughly $7.50 and $11.50 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 OMER market-implied 1-standard-deviation expected move is approximately 32.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on OMER?: Strangles on OMER 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 OMER chain.
How does current OMER implied volatility affect this strangle?: OMER ATM IV is at 114.30% with IV rank near 30.74%, 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.