How are RCLY 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 RCLY strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 15.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$54.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RCLY strangle?

The breakeven for the RCLY strangle priced on this page is roughly $95.46 and $106.47 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 RCLY market-implied 1-standard-deviation expected move is approximately 4.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RCLY implied volatility affect this strangle?

Current RCLY ATM IV is 15.60%; IV rank context is unavailable in the current snapshot.

RCLY Strangle Strategy

RCLY (Reckoner BBB-B CLO Annual ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

RCLY is a feeder fund that provides leveraged exposure to CLO tranches rated as BBB+ to B- by investing exclusively in its master fund, the Reckoner BBB-B CLO ETF (RCLO). The underlying ETF, RCLO, primarily focuses on floating-rate CLOs within its target rating range but may invest up to 70% in CLOs rated BB+ or lower, and up to 10% in CLOs rated above BBB+. Investments could be of any maturity, purchased from both primary and secondary markets. It applies a bottom-up approach to select investments by reviewing documentation on an issuers management, individual CLO structure and collateral, ability to meet obligations, cash flow, and trading frequency. RCLY makes a single annual dividend payment, offering tax efficiency, compounding potential, and the opportunity to maximize long-term total return.

RCLY (Reckoner BBB-B CLO Annual ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $12.6M, a beta of 0.07 versus the broader market, a 52-week range of 96.37-100.94, average daily share volume of 0K, a public-listing history dating back to 2026, approximately 320 full-time employees. These structural characteristics shape how RCLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.07 indicates RCLY 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 RCLY?

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 RCLY snapshot

As of June 30, 2026, spot at $101.14, ATM IV 15.60%, expected move 4.47%. The strangle on RCLY 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 52-day expiry.

Why this strangle structure on RCLY specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RCLY is inferred from ATM IV at 15.60% alone, with a market-implied 1-standard-deviation move of approximately 4.47% (roughly $4.52 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RCLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RCLY should anchor to the underlying notional of $101.14 per share and to the trader's directional view on RCLY stock.

RCLY strangle setup

The RCLY 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 RCLY near $101.14, the first option leg uses a $106.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RCLY chain at a 52-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 RCLY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$106.00	$0.37
Buy 1	Put	$96.00	$0.17

RCLY strangle risk and reward

Net Premium / Debit: -$54.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$54.00
Breakeven(s): $95.46, $106.47
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.

RCLY strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on RCLY. 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%	+$9,545.00
$22.37	-77.9%	+$7,308.85
$44.73	-55.8%	+$5,072.70
$67.09	-33.7%	+$2,836.55
$89.46	-11.6%	+$600.40
$111.82	+10.6%	+$527.75
$134.18	+32.7%	+$2,763.90
$156.54	+54.8%	+$5,000.06
$178.90	+76.9%	+$7,236.21
$201.26	+99.0%	+$9,472.36

When traders use strangle on RCLY

Strangles on RCLY 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 RCLY chain.

RCLY thesis for this strangle

The market-implied 1-standard-deviation range for RCLY extends from approximately $96.62 on the downside to $105.66 on the upside. A RCLY 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. As a Financial Services name, RCLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RCLY-specific events.

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

Frequently asked questions

What is a strangle on RCLY?: A strangle on RCLY is the strangle strategy applied to RCLY (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 RCLY stock trading near $101.14, the strikes shown on this page are snapped to the nearest listed RCLY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RCLY 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 RCLY strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 15.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$54.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RCLY strangle?: The breakeven for the RCLY strangle priced on this page is roughly $95.46 and $106.47 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 RCLY market-implied 1-standard-deviation expected move is approximately 4.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on RCLY?: Strangles on RCLY 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 RCLY chain.
How does current RCLY implied volatility affect this strangle?: Current RCLY ATM IV is 15.60%; IV rank context is unavailable in the current snapshot.