How are PCT 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 PCT strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 82.86%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$110.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PCT strangle?

The breakeven for the PCT strangle priced on this page is roughly $6.40 and $9.60 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 PCT market-implied 1-standard-deviation expected move is approximately 23.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PCT implied volatility affect this strangle?

PCT ATM IV is at 82.86% with IV rank near 51.74%, 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.

PCT Strangle Strategy

PCT (PureCycle Technologies, Inc.), in the Industrials sector, (Industrial - Pollution & Treatment Controls industry), listed on NASDAQ.

PureCycle Technologies, Inc. focuses on manufacturing high-quality, recycled polypropylene (PP). The company employs a proprietary and licensed technology that converts discarded PP materials into an exceptionally pure, regenerated resin. Through an advanced purification process, they meticulously eliminate color, odor, and other unwanted substances from plastic waste feedstock, thereby producing a resin comparable to newly manufactured virgin plastic. Established in 2015, the company maintains its corporate headquarters in Orlando, Florida.

PCT (PureCycle Technologies, Inc.) trades in the Industrials sector, specifically Industrial - Pollution & Treatment Controls, with a market capitalization of approximately $1.56B, a beta of 2.46 versus the broader market, a 52-week range of 4.93-17.37, average daily share volume of 5.4M, a public-listing history dating back to 2020, approximately 157 full-time employees. These structural characteristics shape how PCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.46 indicates PCT 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 PCT?

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 PCT snapshot

As of June 25, 2026, spot at $7.89, ATM IV 82.86%, IV rank 51.74%, expected move 23.76%. The strangle on PCT 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 32-day expiry.

Why this strangle structure on PCT specifically: PCT IV at 82.86% 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 23.76% (roughly $1.87 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on PCT should anchor to the underlying notional of $7.89 per share and to the trader's directional view on PCT stock.

PCT strangle setup

The PCT 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 PCT near $7.89, the first option leg uses a $8.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PCT chain at a 32-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 PCT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$8.50	$0.48
Buy 1	Put	$7.50	$0.63

PCT strangle risk and reward

Net Premium / Debit: -$110.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$110.00
Breakeven(s): $6.40, $9.60
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.

PCT strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on PCT. 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%	+$639.00
$1.75	-77.8%	+$464.66
$3.50	-55.7%	+$290.32
$5.24	-33.6%	+$115.97
$6.98	-11.5%	-$58.37
$8.73	+10.6%	-$87.29
$10.47	+32.7%	+$87.05
$12.21	+54.8%	+$261.39
$13.96	+76.9%	+$435.73
$15.70	+99.0%	+$610.08

When traders use strangle on PCT

Strangles on PCT 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 PCT chain.

PCT thesis for this strangle

The market-implied 1-standard-deviation range for PCT extends from approximately $6.02 on the downside to $9.76 on the upside. A PCT 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 PCT IV rank near 51.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on PCT should anchor more to the directional view and the expected-move geometry. As a Industrials name, PCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PCT-specific events.

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

Frequently asked questions

What is a strangle on PCT?: A strangle on PCT is the strangle strategy applied to PCT (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 PCT stock trading near $7.89, the strikes shown on this page are snapped to the nearest listed PCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PCT 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 PCT strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 82.86%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$110.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PCT strangle?: The breakeven for the PCT strangle priced on this page is roughly $6.40 and $9.60 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 PCT market-implied 1-standard-deviation expected move is approximately 23.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on PCT?: Strangles on PCT 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 PCT chain.
How does current PCT implied volatility affect this strangle?: PCT ATM IV is at 82.86% with IV rank near 51.74%, 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.