RVTY Strangle Strategy
RVTY (Revvity, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NYSE.
Revvity, Inc., founded in 1937 and based in Waltham, Massachusetts, is a global enterprise that develops and delivers a wide array of products, services, and solutions. The company, which changed its name from PerkinElmer, Inc. in April 2023, caters to the diagnostics, life sciences, and applied services sectors worldwide. Its Discovery & Analytical Solutions division provides advanced instrumentation, reagents, informatics, software, subscriptions, and sophisticated detection and imaging technologies. These resources are designed to enable scientists to achieve significant breakthroughs in life sciences research. This segment also offers contract research and specialized laboratory services. Furthermore, it supplies analytical tools and services for assessing environmental health, including air, water, and soil, and delivers solutions to agricultural and food producers.
RVTY (Revvity, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $12.61B, a trailing P/E of 52.48, a beta of 1.11 versus the broader market, a 52-week range of 81.22-118.3, average daily share volume of 1.4M, a public-listing history dating back to 1965, approximately 11K full-time employees. These structural characteristics shape how RVTY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places RVTY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 52.48 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. RVTY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on RVTY?
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 RVTY snapshot
As of June 30, 2026, spot at $111.10, ATM IV 41.70%, IV rank 4.13%, expected move 11.96%. The strangle on RVTY 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 17-day expiry.
Why this strangle structure on RVTY specifically: RVTY IV at 41.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a RVTY strangle, with a market-implied 1-standard-deviation move of approximately 11.96% (roughly $13.28 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RVTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RVTY should anchor to the underlying notional of $111.10 per share and to the trader's directional view on RVTY stock.
RVTY strangle setup
The RVTY 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 RVTY near $111.10, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RVTY chain at a 17-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 RVTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $115.00 | $2.38 |
| Buy 1 | Put | $105.00 | $1.25 |
RVTY strangle risk and reward
- Net Premium / Debit
- -$362.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$362.50
- Breakeven(s)
- $101.38, $118.63
- 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.
RVTY strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on RVTY. 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% | +$10,136.50 |
| $24.57 | -77.9% | +$7,680.13 |
| $49.14 | -55.8% | +$5,223.76 |
| $73.70 | -33.7% | +$2,767.38 |
| $98.26 | -11.6% | +$311.01 |
| $122.83 | +10.6% | +$420.36 |
| $147.39 | +32.7% | +$2,876.73 |
| $171.96 | +54.8% | +$5,333.10 |
| $196.52 | +76.9% | +$7,789.47 |
| $221.08 | +99.0% | +$10,245.85 |
When traders use strangle on RVTY
Strangles on RVTY 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 RVTY chain.
RVTY thesis for this strangle
The market-implied 1-standard-deviation range for RVTY extends from approximately $97.82 on the downside to $124.38 on the upside. A RVTY 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 RVTY IV rank near 4.13% 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 RVTY at 41.70%. As a Healthcare name, RVTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RVTY-specific events.
RVTY 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. RVTY positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RVTY alongside the broader basket even when RVTY-specific fundamentals are unchanged. Always rebuild the position from current RVTY chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on RVTY?
- A strangle on RVTY is the strangle strategy applied to RVTY (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 RVTY stock trading near $111.10, the strikes shown on this page are snapped to the nearest listed RVTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RVTY 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 RVTY strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 41.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$362.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RVTY strangle?
- The breakeven for the RVTY strangle priced on this page is roughly $101.38 and $118.63 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 RVTY market-implied 1-standard-deviation expected move is approximately 11.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on RVTY?
- Strangles on RVTY 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 RVTY chain.
- How does current RVTY implied volatility affect this strangle?
- RVTY ATM IV is at 41.70% with IV rank near 4.13%, 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.