How are ONON 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 ONON strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.54%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$149.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ONON strangle?

The breakeven for the ONON strangle priced on this page is roughly $29.51 and $35.49 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 ONON market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ONON implied volatility affect this strangle?

ONON ATM IV is at 37.54% with IV rank near 3.67%, 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.

ONON Strangle Strategy

ONON (On Holding AG), in the Consumer Cyclical sector, (Apparel - Footwear & Accessories industry), listed on NYSE.

On Holding AG, together with its subsidiaries, develops and distributes performance sports products under the On brand in Switzerland, the rest of Europe, the Middle East, Africa, the United States, the rest of the Americas, and the Asia-Pacific. The company offers athletic footwear, apparel, and accessories for performance running, performance outdoor, performance all day, performance training, performance tennis, and young movers. It sells its products to athletes and active customers through wholesale and direct-to-consumer channels; run specialty, general sporting goods, outdoor, luxury, street fashion, and lifestyle retailers; owned retail stores; and e-commerce platforms. On Holding AG was founded in 2010 and is headquartered in Zurich, Switzerland.

ONON (On Holding AG) trades in the Consumer Cyclical sector, specifically Apparel - Footwear & Accessories, with a market capitalization of approximately $10.74B, a trailing P/E of 21.94, a beta of 2.12 versus the broader market, a 52-week range of 30.112-51.08, average daily share volume of 6.0M, a public-listing history dating back to 2021, approximately 4K full-time employees. These structural characteristics shape how ONON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.12 indicates ONON 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 ONON?

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.

ONON snapshot

As of August 14, 2026, spot at $32.24, ATM IV 37.54%, IV rank 3.67%, expected move 10.76%. The strangle on ONON 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 ONON specifically: ONON IV at 37.54% is on the cheap side of its 1-year range, which favors premium-buying structures like a ONON strangle, with a market-implied 1-standard-deviation move of approximately 10.76% (roughly $3.47 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 ONON expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONON should anchor to the underlying notional of $32.24 per share and to the trader's directional view on ONON stock.

ONON strangle setup

The ONON 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 ONON at $32.24 on that close, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONON 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 ONON shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$34.00	$0.74
Buy 1	Put	$31.00	$0.76

ONON strangle risk and reward

Net Premium / Debit: -$149.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$149.00
Breakeven(s): $29.51, $35.49
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.

ONON strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on ONON. 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%	+$2,950.00
$7.14	-77.9%	+$2,237.27
$14.26	-55.8%	+$1,524.53
$21.39	-33.6%	+$811.80
$28.52	-11.5%	+$99.07
$35.65	+10.6%	+$15.67
$42.77	+32.7%	+$728.40
$49.90	+54.8%	+$1,441.14
$57.03	+76.9%	+$2,153.87
$64.16	+99.0%	+$2,866.60

When traders use strangle on ONON

Strangles on ONON 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 ONON chain.

ONON thesis for this strangle

The market-implied 1-standard-deviation range for ONON extends from approximately $28.77 on the downside to $35.71 on the upside. A ONON 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 ONON IV rank near 3.67% 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 ONON at 37.54%. As a Consumer Cyclical name, ONON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONON-specific events.

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

Frequently asked questions

What is a strangle on ONON?: A strangle on ONON is the strangle strategy applied to ONON (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 ONON stock at $32.24 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ONON chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ONON 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 ONON strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.54%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$149.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ONON strangle?: The breakeven for the ONON strangle priced on this page is roughly $29.51 and $35.49 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 ONON market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on ONON?: Strangles on ONON 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 ONON chain.
How does current ONON implied volatility affect this strangle?: ONON ATM IV is at 37.54% with IV rank near 3.67%, 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.