How are SUPN 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 SUPN strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 40.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$150.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SUPN strangle?

The breakeven for the SUPN strangle priced on this page is roughly $42.50 and $50.50 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 SUPN market-implied 1-standard-deviation expected move is approximately 11.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SUPN implied volatility affect this strangle?

SUPN ATM IV is at 40.10% with IV rank near 5.31%, 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.

SUPN Strangle Strategy

SUPN (Supernus Pharmaceuticals, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

Supernus Pharmaceuticals, Inc. is a biopharmaceutical firm dedicated to developing and marketing therapies for central nervous system (CNS) disorders within the United States. Its portfolio of marketed products includes Trokendi XR, an extended-release topiramate formulation prescribed for both epilepsy management and migraine prevention. Another key product is Oxtellar XR, an extended-release oxcarbazepine designed for the standalone treatment of partial-onset epileptic seizures in patients aged 6 to 17 and adults. The company also offers Qelbree, a selective norepinephrine reuptake inhibitor approved for attention-deficit hyperactivity disorder (ADHD) in children and adolescents aged 6 to 17. For advanced Parkinson's Disease (PD) patients, APOKYN offers acute, intermittent relief during "off" episodes of hypomobility, and XADAGO serves as an adjunctive treatment with levodopa/carbidopa for those experiencing similar off periods. Other offerings include GOCOVRI, which targets dyskinesia in PD patients, and Osmolex ER, used for Parkinson's disease and drug-induced extrapyramidal reactions in adults.

SUPN (Supernus Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $2.72B, a beta of 0.54 versus the broader market, a 52-week range of 31.16-59.68, average daily share volume of 684K, a public-listing history dating back to 2012, approximately 674 full-time employees. These structural characteristics shape how SUPN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.54 indicates SUPN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a strangle on SUPN?

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 SUPN snapshot

As of June 29, 2026, spot at $46.34, ATM IV 40.10%, IV rank 5.31%, expected move 11.50%. The strangle on SUPN 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 18-day expiry.

Why this strangle structure on SUPN specifically: SUPN IV at 40.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a SUPN strangle, with a market-implied 1-standard-deviation move of approximately 11.50% (roughly $5.33 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SUPN expiries trade a higher absolute premium for lower per-day decay. Position sizing on SUPN should anchor to the underlying notional of $46.34 per share and to the trader's directional view on SUPN stock.

SUPN strangle setup

The SUPN 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 SUPN near $46.34, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SUPN chain at a 18-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 SUPN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$49.00	$0.73
Buy 1	Put	$44.00	$0.78

SUPN strangle risk and reward

Net Premium / Debit: -$150.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$150.00
Breakeven(s): $42.50, $50.50
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.

SUPN strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on SUPN. 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%	+$4,249.00
$10.25	-77.9%	+$3,224.51
$20.50	-55.8%	+$2,200.02
$30.74	-33.7%	+$1,175.52
$40.99	-11.5%	+$151.03
$51.23	+10.6%	+$73.46
$61.48	+32.7%	+$1,097.95
$71.72	+54.8%	+$2,122.45
$81.97	+76.9%	+$3,146.94
$92.21	+99.0%	+$4,171.43

When traders use strangle on SUPN

Strangles on SUPN 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 SUPN chain.

SUPN thesis for this strangle

The market-implied 1-standard-deviation range for SUPN extends from approximately $41.01 on the downside to $51.67 on the upside. A SUPN 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 SUPN IV rank near 5.31% 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 SUPN at 40.10%. As a Healthcare name, SUPN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SUPN-specific events.

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

Frequently asked questions

What is a strangle on SUPN?: A strangle on SUPN is the strangle strategy applied to SUPN (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 SUPN stock trading near $46.34, the strikes shown on this page are snapped to the nearest listed SUPN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SUPN 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 SUPN strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 40.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$150.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SUPN strangle?: The breakeven for the SUPN strangle priced on this page is roughly $42.50 and $50.50 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 SUPN market-implied 1-standard-deviation expected move is approximately 11.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on SUPN?: Strangles on SUPN 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 SUPN chain.
How does current SUPN implied volatility affect this strangle?: SUPN ATM IV is at 40.10% with IV rank near 5.31%, 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.