OMEX Strangle Strategy

OMEX (Odyssey Marine Exploration, Inc.), in the Industrials sector, (Specialty Business Services industry), listed on NASDAQ.

Odyssey Marine Exploration, Inc., operating through its various subsidiaries, specializes in the worldwide identification, validation, and development of subsea resources. The company offers expert services to its clients, including specialized oceanic mineral prospecting, comprehensive project execution, and general marine support. Furthermore, they provide a range of consulting services such as resource evaluation, meticulous project planning, scientific research, and overall project management. The firm was established in 1986 and its principal corporate offices are situated in Tampa, Florida.

OMEX (Odyssey Marine Exploration, Inc.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $49.8M, a beta of -0.15 versus the broader market, a 52-week range of 0.585-4.43, average daily share volume of 681K, a public-listing history dating back to 1999, approximately 12 full-time employees. These structural characteristics shape how OMEX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.15 indicates OMEX 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 OMEX?

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.

OMEX snapshot

As of August 14, 2026, spot at $0.91, ATM IV 418.80%, IV rank 90.18%, expected move 120.07%. The strangle on OMEX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this strangle structure on OMEX specifically: OMEX IV at 418.80% is rich versus its 1-year range, which makes a premium-buying OMEX strangle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 120.07% (roughly $1.09 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OMEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on OMEX should anchor to the underlying notional of $0.91 per share and to the trader's directional view on OMEX stock.

OMEX strangle setup

The OMEX 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 OMEX at $0.91 on that close, the first option leg uses a $0.96 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OMEX chain at a 35-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 OMEX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$0.96	N/A
Buy 1	Put	$0.86	N/A

OMEX 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.

OMEX strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on OMEX. 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 OMEX

Strangles on OMEX 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 OMEX chain.

OMEX thesis for this strangle

The market-implied 1-standard-deviation range for OMEX extends from approximately $-0.18 on the downside to $2.00 on the upside. A OMEX 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 OMEX IV rank near 90.18% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on OMEX at 418.80%. As a Industrials name, OMEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OMEX-specific events.

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

Frequently asked questions

What is a strangle on OMEX?: A strangle on OMEX is the strangle strategy applied to OMEX (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 OMEX stock at $0.91 on the most recent close, the strikes shown on this page are snapped to the nearest listed OMEX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are OMEX 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 OMEX strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 418.80%), 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 OMEX strangle?: The breakeven for the OMEX strangle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 OMEX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 120.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on OMEX?: Strangles on OMEX 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 OMEX chain.
How does current OMEX implied volatility affect this strangle?: OMEX ATM IV is at 418.80% with IV rank near 90.18%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.