How are STZ 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 STZ strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$265.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STZ strangle?

The breakeven for the STZ strangle priced on this page is roughly $129.35 and $148.65 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 STZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STZ implied volatility affect this strangle?

STZ ATM IV is at 26.80% with IV rank near 10.68%, 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.

STZ Strangle Strategy

STZ (Constellation Brands, Inc.), in the Consumer Defensive sector, (Beverages - Alcoholic industry), listed on NYSE.

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company offers beer under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook’s California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands. The company provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is based in Rochester, New York.

STZ (Constellation Brands, Inc.) trades in the Consumer Defensive sector, specifically Beverages - Alcoholic, with a market capitalization of approximately $22.88B, a trailing P/E of 12.64, a beta of 0.40 versus the broader market, a 52-week range of 126.45-171, average daily share volume of 2.2M, a public-listing history dating back to 1992, approximately 9K full-time employees. These structural characteristics shape how STZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.40 indicates STZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. STZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on STZ?

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.

STZ snapshot

As of August 14, 2026, spot at $138.69, ATM IV 26.80%, IV rank 10.68%, expected move 7.68%. The strangle on STZ 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 STZ specifically: STZ IV at 26.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a STZ strangle, with a market-implied 1-standard-deviation move of approximately 7.68% (roughly $10.66 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 STZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on STZ should anchor to the underlying notional of $138.69 per share and to the trader's directional view on STZ stock.

STZ strangle setup

The STZ 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 STZ at $138.69 on that close, the first option leg uses a $146.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STZ 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 STZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$146.00	$1.10
Buy 1	Put	$132.00	$1.55

STZ strangle risk and reward

Net Premium / Debit: -$265.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$265.00
Breakeven(s): $129.35, $148.65
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.

STZ strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on STZ. 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%	+$12,934.00
$30.67	-77.9%	+$9,867.60
$61.34	-55.8%	+$6,801.20
$92.00	-33.7%	+$3,734.79
$122.67	-11.6%	+$668.39
$153.33	+10.6%	+$468.01
$183.99	+32.7%	+$3,534.41
$214.66	+54.8%	+$6,600.81
$245.32	+76.9%	+$9,667.22
$275.99	+99.0%	+$12,733.62

When traders use strangle on STZ

Strangles on STZ 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 STZ chain.

STZ thesis for this strangle

The market-implied 1-standard-deviation range for STZ extends from approximately $128.03 on the downside to $149.35 on the upside. A STZ 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 STZ IV rank near 10.68% 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 STZ at 26.80%. As a Consumer Defensive name, STZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STZ-specific events.

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

Frequently asked questions

What is a strangle on STZ?: A strangle on STZ is the strangle strategy applied to STZ (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 STZ stock at $138.69 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed STZ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are STZ 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 STZ strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$265.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STZ strangle?: The breakeven for the STZ strangle priced on this page is roughly $129.35 and $148.65 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 STZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on STZ?: Strangles on STZ 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 STZ chain.
How does current STZ implied volatility affect this strangle?: STZ ATM IV is at 26.80% with IV rank near 10.68%, 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.