How are RVMD 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 RVMD strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 63.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,850.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RVMD strangle?

The breakeven for the RVMD strangle priced on this page is roughly $121.50 and $168.50 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 RVMD market-implied 1-standard-deviation expected move is approximately 18.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RVMD implied volatility affect this strangle?

RVMD ATM IV is at 63.90% with IV rank near 31.69%, 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.

RVMD Strangle Strategy

RVMD (Revolution Medicines, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Revolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing therapies to inhibit frontier targets in RAS-addicted cancers. The company is developing RMC-4630, an inhibitor of SHP2, which is in Phase 1/2 clinical trial for the treatment of solid tumors, such as gynecologic and colorectal cancer tumors. It also develops RMC-5845, a selective inhibitor of SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a hyperactivated selective inhibitor of mTORC1 signaling in tumors. In addition, the company is developing RMC-6291, a mutant-selective inhibitor of KRASG12C(ON) and NRASG12C(ON); and RMC-6236, a RAS-selective inhibitor of multiple RAS(ON) variants. Further, it develops RAS(ON) Inhibitors targeting KRASG13C(ON) and KRASG12D(ON). The company has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors, including RMC-4630.

RVMD (Revolution Medicines, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $31.88B, a beta of 1.41 versus the broader market, a 52-week range of 34-155.7, average daily share volume of 3.0M, a public-listing history dating back to 2020, approximately 616 full-time employees. These structural characteristics shape how RVMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.41 indicates RVMD 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 RVMD?

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 RVMD snapshot

As of May 15, 2026, spot at $145.12, ATM IV 63.90%, IV rank 31.69%, expected move 18.32%. The strangle on RVMD 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 RVMD specifically: RVMD IV at 63.90% 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 18.32% (roughly $26.59 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 RVMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on RVMD should anchor to the underlying notional of $145.12 per share and to the trader's directional view on RVMD stock.

RVMD strangle setup

The RVMD 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 RVMD near $145.12, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RVMD 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 RVMD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$150.00	$9.85
Buy 1	Put	$140.00	$8.65

RVMD strangle risk and reward

Net Premium / Debit: -$1,850.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,850.00
Breakeven(s): $121.50, $168.50
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.

RVMD strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on RVMD. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$12,149.00
$32.10	-77.9%	+$8,940.43
$64.18	-55.8%	+$5,731.85
$96.27	-33.7%	+$2,523.28
$128.35	-11.6%	-$685.29
$160.44	+10.6%	-$806.14
$192.52	+32.7%	+$2,402.44
$224.61	+54.8%	+$5,611.01
$256.70	+76.9%	+$8,819.58
$288.78	+99.0%	+$12,028.16

When traders use strangle on RVMD

Strangles on RVMD 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 RVMD chain.

RVMD thesis for this strangle

The market-implied 1-standard-deviation range for RVMD extends from approximately $118.53 on the downside to $171.71 on the upside. A RVMD 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 RVMD IV rank near 31.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on RVMD should anchor more to the directional view and the expected-move geometry. As a Healthcare name, RVMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RVMD-specific events.

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

Frequently asked questions

What is a strangle on RVMD?: A strangle on RVMD is the strangle strategy applied to RVMD (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 RVMD stock trading near $145.12, the strikes shown on this page are snapped to the nearest listed RVMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RVMD 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 RVMD strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 63.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,850.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RVMD strangle?: The breakeven for the RVMD strangle priced on this page is roughly $121.50 and $168.50 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 RVMD market-implied 1-standard-deviation expected move is approximately 18.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on RVMD?: Strangles on RVMD 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 RVMD chain.
How does current RVMD implied volatility affect this strangle?: RVMD ATM IV is at 63.90% with IV rank near 31.69%, 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.