STKS Strangle Strategy
STKS (The ONE Group Hospitality, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
The ONE Group Hospitality, Inc. is a global hospitality firm primarily involved in the development, ownership, operation, management, and licensing of restaurants and lounges. The company conducts its business through its distinct STK, Kona Grill, and ONE Hospitality segments. Beyond its own branded establishments, it provides comprehensive, turn-key food and beverage management and advisory solutions for diverse hospitality venues, including hotels, casinos, and other sites. These integrated services encompass the development, management, and operation of various outlets like restaurants, bars, rooftop spaces, pool areas, banqueting facilities, catering, private dining rooms, room service, and mini-bars. The company's main restaurant brands are STK and Kona Grill. As of December 31, 2021, The ONE Group's extensive portfolio included 60 owned, operated, managed, or licensed venues globally.
STKS (The ONE Group Hospitality, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $56.5M, a beta of 1.34 versus the broader market, a 52-week range of 1.65-3.38, average daily share volume of 28K, a public-listing history dating back to 2014, approximately 10K full-time employees. These structural characteristics shape how STKS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.34 indicates STKS 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 STKS?
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.
STKS snapshot
As of August 14, 2026, spot at $1.85, ATM IV 262.90%, IV rank 54.34%, expected move 75.37%. The strangle on STKS below is built from the 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 STKS specifically: STKS IV at 262.90% 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 75.37% (roughly $1.39 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 STKS expiries trade a higher absolute premium for lower per-day decay. Position sizing on STKS should anchor to the underlying notional of $1.85 per share and to the trader's directional view on STKS stock.
STKS strangle setup
The STKS 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 STKS at $1.85 on that close, the first option leg uses a $1.94 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STKS 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 STKS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.94 | N/A |
| Buy 1 | Put | $1.76 | N/A |
STKS 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.
STKS strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on STKS. 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 STKS
Strangles on STKS 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 STKS chain.
STKS thesis for this strangle
The market-implied 1-standard-deviation range for STKS extends from approximately $0.46 on the downside to $3.24 on the upside. A STKS 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 STKS IV rank near 54.34% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on STKS should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, STKS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STKS-specific events.
STKS 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. STKS positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STKS alongside the broader basket even when STKS-specific fundamentals are unchanged. Always rebuild the position from current STKS chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on STKS?
- A strangle on STKS is the strangle strategy applied to STKS (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 STKS stock at $1.85 on the most recent close, the strikes shown on this page are snapped to the nearest listed STKS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are STKS 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 STKS strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 262.90%), 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 STKS strangle?
- The breakeven for the STKS strangle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 STKS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 75.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on STKS?
- Strangles on STKS 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 STKS chain.
- How does current STKS implied volatility affect this strangle?
- STKS ATM IV is at 262.90% with IV rank near 54.34%, 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.