REPL Strangle Strategy
REPL (Replimune Group, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Replimune Group, Inc., a biotechnology company, develops oncolytic immuno-gene therapies to treat cancer. It uses its proprietary Immunotherapy platform to design and develop product candidates that are intended to activate the immune system against cancer. The company's lead product candidate is RP1, a selectively replicating version of herpes simplex virus 1, which is in Phase I/II clinical trials for a range of solid tumors; and that is in Phase II clinical trials for patients with cutaneous squamous cell carcinoma. It is also developing RP2, which is in Phase I clinical trials for an anti-CTLA-4 antibody-like protein in order to block the inhibition of the immune response otherwise caused by CTLA-4; and RP3 that is in Phase I clinical trials to express immune-activating proteins that stimulate T cells. Replimune Group, Inc. was founded in 2015 and is headquartered in Woburn, Massachusetts.
REPL (Replimune Group, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $437.6M, a beta of 0.12 versus the broader market, a 52-week range of 1.5-13.24, average daily share volume of 5.4M, a public-listing history dating back to 2018, approximately 479 full-time employees. These structural characteristics shape how REPL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.12 indicates REPL 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 REPL?
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 REPL snapshot
As of May 15, 2026, spot at $5.26, ATM IV 143.13%, IV rank 30.24%, expected move 41.04%. The strangle on REPL 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 14-day expiry.
Why this strangle structure on REPL specifically: REPL IV at 143.13% 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 41.04% (roughly $2.16 on the underlying). The 14-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated REPL expiries trade a higher absolute premium for lower per-day decay. Position sizing on REPL should anchor to the underlying notional of $5.26 per share and to the trader's directional view on REPL stock.
REPL strangle setup
The REPL 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 REPL near $5.26, the first option leg uses a $5.52 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REPL chain at a 14-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 REPL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.52 | N/A |
| Buy 1 | Put | $5.00 | N/A |
REPL 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.
REPL strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on REPL. 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 REPL
Strangles on REPL 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 REPL chain.
REPL thesis for this strangle
The market-implied 1-standard-deviation range for REPL extends from approximately $3.10 on the downside to $7.42 on the upside. A REPL 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 REPL IV rank near 30.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on REPL should anchor more to the directional view and the expected-move geometry. As a Healthcare name, REPL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REPL-specific events.
REPL 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. REPL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REPL alongside the broader basket even when REPL-specific fundamentals are unchanged. Always rebuild the position from current REPL chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on REPL?
- A strangle on REPL is the strangle strategy applied to REPL (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 REPL stock trading near $5.26, the strikes shown on this page are snapped to the nearest listed REPL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REPL 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 REPL strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 143.13%), 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 REPL strangle?
- The breakeven for the REPL 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 REPL market-implied 1-standard-deviation expected move is approximately 41.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on REPL?
- Strangles on REPL 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 REPL chain.
- How does current REPL implied volatility affect this strangle?
- REPL ATM IV is at 143.13% with IV rank near 30.24%, 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.