PKBK Strangle Strategy
PKBK (Parke Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. It operates through 7 branch offices in Galloway Township, Northfield, Washington Township, and Collingswood, New Jersey; and Philadelphia, Pennsylvania. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.
PKBK (Parke Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $355.9M, a trailing P/E of 8.41, a beta of 0.49 versus the broader market, a 52-week range of 18.78-31.45, average daily share volume of 94K, a public-listing history dating back to 2003, approximately 99 full-time employees. These structural characteristics shape how PKBK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.49 indicates PKBK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 8.41 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. PKBK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on PKBK?
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 PKBK snapshot
As of May 15, 2026, spot at $30.27, ATM IV 37.10%, IV rank 6.47%, expected move 10.64%. The strangle on PKBK 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 34-day expiry.
Why this strangle structure on PKBK specifically: PKBK IV at 37.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a PKBK strangle, with a market-implied 1-standard-deviation move of approximately 10.64% (roughly $3.22 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PKBK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PKBK should anchor to the underlying notional of $30.27 per share and to the trader's directional view on PKBK stock.
PKBK strangle setup
The PKBK 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 PKBK near $30.27, the first option leg uses a $31.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PKBK chain at a 34-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 PKBK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $31.78 | N/A |
| Buy 1 | Put | $28.76 | N/A |
PKBK 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.
PKBK strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on PKBK. 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 PKBK
Strangles on PKBK 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 PKBK chain.
PKBK thesis for this strangle
The market-implied 1-standard-deviation range for PKBK extends from approximately $27.05 on the downside to $33.49 on the upside. A PKBK 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 PKBK IV rank near 6.47% 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 PKBK at 37.10%. As a Financial Services name, PKBK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PKBK-specific events.
PKBK 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. PKBK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PKBK alongside the broader basket even when PKBK-specific fundamentals are unchanged. Always rebuild the position from current PKBK chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on PKBK?
- A strangle on PKBK is the strangle strategy applied to PKBK (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 PKBK stock trading near $30.27, the strikes shown on this page are snapped to the nearest listed PKBK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PKBK 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 PKBK strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 37.10%), 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 PKBK strangle?
- The breakeven for the PKBK strangle priced on this page is no defined breakeven on the modeled curve 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 PKBK market-implied 1-standard-deviation expected move is approximately 10.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on PKBK?
- Strangles on PKBK 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 PKBK chain.
- How does current PKBK implied volatility affect this strangle?
- PKBK ATM IV is at 37.10% with IV rank near 6.47%, 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.