How are SEDG 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 SEDG strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 79.33%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$431.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SEDG strangle?

The breakeven for the SEDG strangle priced on this page is roughly $26.69 and $38.31 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SEDG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SEDG implied volatility affect this strangle?

SEDG ATM IV is at 79.33% with IV rank near 10.62%, 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.

SEDG Strangle Strategy

SEDG (SolarEdge Technologies, Inc.), in the Energy sector, (Solar industry), listed on NASDAQ.

SolarEdge Technologies, Inc. (SEDG) is a company specializing in the design, development, and sale of direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations globally. The company operates through five key segments: Solar, Energy Storage, e-Mobility, Critical Power, and Automation Machines. Its product portfolio encompasses inverters, power optimizers, communication devices, and smart energy management solutions, catering to residential, commercial, and smaller utility-scale solar projects. SolarEdge also provides a cloud-based monitoring platform that collects and processes data from its optimizers and inverters to oversee and manage solar PV systems. Beyond its core solar offerings, SolarEdge delivers a range of solutions including residential, commercial, and large-scale PV, energy storage and backup, electric vehicle charging, and home energy management, along with grid services. The company also extends into e-Mobility, automation machinery, lithium-ion cells and battery packs, and uninterruptible power supply (UPS) solutions, as well as developing virtual power plants to aid in grid load management and stability.

SEDG (SolarEdge Technologies, Inc.) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $1.97B, a beta of 1.47 versus the broader market, a 52-week range of 28.21-81.25, average daily share volume of 3.6M, a public-listing history dating back to 2015, approximately 4K full-time employees. These structural characteristics shape how SEDG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.47 indicates SEDG 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 SEDG?

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.

SEDG snapshot

As of August 14, 2026, spot at $32.30, ATM IV 79.33%, IV rank 10.62%, expected move 22.74%. The strangle on SEDG below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this strangle structure on SEDG specifically: SEDG IV at 79.33% is on the cheap side of its 1-year range, which favors premium-buying structures like a SEDG strangle, with a market-implied 1-standard-deviation move of approximately 22.74% (roughly $7.35 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SEDG expiries trade a higher absolute premium for lower per-day decay. Position sizing on SEDG should anchor to the underlying notional of $32.30 per share and to the trader's directional view on SEDG stock.

SEDG strangle setup

The SEDG strangle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SEDG at $32.30 on that close, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SEDG chain at a 28-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 SEDG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$34.00	$2.22
Buy 1	Put	$31.00	$2.10

SEDG strangle risk and reward

Net Premium / Debit: -$431.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$431.00
Breakeven(s): $26.69, $38.31
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.

SEDG strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on SEDG. 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%	+$2,668.00
$7.15	-77.9%	+$1,953.94
$14.29	-55.8%	+$1,239.88
$21.43	-33.6%	+$525.82
$28.57	-11.5%	-$188.24
$35.71	+10.6%	-$259.70
$42.85	+32.7%	+$454.36
$49.99	+54.8%	+$1,168.42
$57.13	+76.9%	+$1,882.48
$64.28	+99.0%	+$2,596.54

When traders use strangle on SEDG

Strangles on SEDG 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 SEDG chain.

SEDG thesis for this strangle

The market-implied 1-standard-deviation range for SEDG extends from approximately $24.95 on the downside to $39.65 on the upside. A SEDG 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 SEDG IV rank near 10.62% 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 SEDG at 79.33%. As a Energy name, SEDG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SEDG-specific events.

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

Frequently asked questions

What is a strangle on SEDG?: A strangle on SEDG is the strangle strategy applied to SEDG (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 SEDG stock at $32.30 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SEDG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SEDG 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 SEDG strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 79.33%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$431.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SEDG strangle?: The breakeven for the SEDG strangle priced on this page is roughly $26.69 and $38.31 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SEDG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on SEDG?: Strangles on SEDG 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 SEDG chain.
How does current SEDG implied volatility affect this strangle?: SEDG ATM IV is at 79.33% with IV rank near 10.62%, 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.