How are SII 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 SII strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$612.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SII strangle?

The breakeven for the SII strangle priced on this page is roughly $103.88 and $131.13 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 SII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SII implied volatility affect this strangle?

SII ATM IV is at 40.70% with IV rank near 25.76%, 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.

SII Strangle Strategy

SII (Sprott Inc.), in the Financial Services sector, (Asset Management industry), listed on NYSE.

Sprott Inc. functions as a publicly listed holding company primarily engaged in asset management. Through its various subsidiary entities, it delivers a comprehensive spectrum of financial provisions to its client base, encompassing asset oversight, investment portfolio administration, wealth advisory, fund supervision, and both administrative and consultative assistance. Its offerings include a range of investment vehicles such as mutual funds, hedge funds, offshore funds, and individually managed accounts. Additionally, the firm conducts broker-dealer activities. Sprott Inc. was founded on February 13, 2008, and its headquarters are located in Toronto, Canada.

SII (Sprott Inc.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.04B, a trailing P/E of 28.75, a beta of 1.35 versus the broader market, a 52-week range of 61.94-169.63, average daily share volume of 192K, a public-listing history dating back to 2010, approximately 131 full-time employees. These structural characteristics shape how SII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates SII has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on SII?

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.

SII snapshot

As of August 14, 2026, spot at $116.94, ATM IV 40.70%, IV rank 25.76%, expected move 11.67%. The strangle on SII 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 35-day expiry.

Why this strangle structure on SII specifically: SII IV at 40.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a SII strangle, with a market-implied 1-standard-deviation move of approximately 11.67% (roughly $13.64 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SII expiries trade a higher absolute premium for lower per-day decay. Position sizing on SII should anchor to the underlying notional of $116.94 per share and to the trader's directional view on SII stock.

SII strangle setup

The SII 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 SII at $116.94 on that close, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SII chain at a 35-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 SII shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$125.00	$3.05
Buy 1	Put	$110.00	$3.08

SII strangle risk and reward

Net Premium / Debit: -$612.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$612.50
Breakeven(s): $103.88, $131.13
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.

SII strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on SII. 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%	+$10,386.50
$25.86	-77.9%	+$7,801.00
$51.72	-55.8%	+$5,215.51
$77.57	-33.7%	+$2,630.01
$103.43	-11.6%	+$44.51
$129.28	+10.6%	-$184.01
$155.14	+32.7%	+$2,401.48
$180.99	+54.8%	+$4,986.98
$206.85	+76.9%	+$7,572.48
$232.70	+99.0%	+$10,157.98

When traders use strangle on SII

Strangles on SII 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 SII chain.

SII thesis for this strangle

The market-implied 1-standard-deviation range for SII extends from approximately $103.30 on the downside to $130.58 on the upside. A SII 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 SII IV rank near 25.76% 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 SII at 40.70%. As a Financial Services name, SII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SII-specific events.

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

Frequently asked questions

What is a strangle on SII?: A strangle on SII is the strangle strategy applied to SII (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 SII stock at $116.94 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SII chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SII 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 SII strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$612.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SII strangle?: The breakeven for the SII strangle priced on this page is roughly $103.88 and $131.13 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 SII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on SII?: Strangles on SII 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 SII chain.
How does current SII implied volatility affect this strangle?: SII ATM IV is at 40.70% with IV rank near 25.76%, 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.