TBPH Strangle Strategy
TBPH (Theravance Biopharma, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Theravance Biopharma, Inc., a biopharmaceutical company, discovers, develops, and commercializes respiratory medicines in the United States, Europe, and Asia. The company offers YUPELRI, a once-daily, nebulized long-acting muscarinic antagonist used for the treatment of chronic obstructive pulmonary disease (COPD). Its product portfolio also include Izencitinib, a gut-selective pan-janus kinase (JAK) inhibitor that is in Phase IIb/III clinical trials for the treatment of rheumatoid arthritis, myelofibrosis, and ulcerative colitis, as well as for a range of inflammatory intestinal diseases, including ulcerative colitis and Crohn's disease. In addition, the company's product portfolio comprise Ampreloxetine, an investigational norepinephrine reuptake inhibitor that has completed Phase III study for neurogenic orthostatic hypotension; Nezulcitinib, a lung-selective, nebulized JAK inhibitor, which is in Phase II clinical development for the potential treatment of hospitalized patients with acute lung injury caused by COVID-19; Inhaled ALK5i, a potential inhaled anti-fibrotic agent that is in Phase I for the treatment of idiopathic pulmonary fibrosis; and TD-5202, an investigational, orally administered, gut-selective, irreversible JAK3 inhibitor that is in Phase I clinical study for treatment of inflammatory intestinal diseases. Further, it offers TRELEGY for the treatment of COPD and asthma; Velusetrag, an oral and investigational medicine for gastrointestinal motility disorders; and Selective 5-HT4 Agonist for treatment of gastrointestinal motility disorders. It has a licensing and collaboration agreements with Pfizer Inc., Viatris Inc., Janssen Biotech, Inc., Alfasigma S.p.A, and Takeda Pharmaceutical Company Limited.
TBPH (Theravance Biopharma, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $859.4M, a trailing P/E of 7.46, a beta of 0.19 versus the broader market, a 52-week range of 8.4-21.03, average daily share volume of 620K, a public-listing history dating back to 2014, approximately 97 full-time employees. These structural characteristics shape how TBPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.19 indicates TBPH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 7.46 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a strangle on TBPH?
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 TBPH snapshot
As of May 15, 2026, spot at $16.41, ATM IV 101.70%, IV rank 24.62%, expected move 29.16%. The strangle on TBPH 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 34-day expiry.
Why this strangle structure on TBPH specifically: TBPH IV at 101.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a TBPH strangle, with a market-implied 1-standard-deviation move of approximately 29.16% (roughly $4.78 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TBPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TBPH should anchor to the underlying notional of $16.41 per share and to the trader's directional view on TBPH stock.
TBPH strangle setup
The TBPH 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 TBPH near $16.41, the first option leg uses a $17.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TBPH chain at a 34-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 TBPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.23 | N/A |
| Buy 1 | Put | $15.59 | N/A |
TBPH 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.
TBPH strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on TBPH. 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 TBPH
Strangles on TBPH 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 TBPH chain.
TBPH thesis for this strangle
The market-implied 1-standard-deviation range for TBPH extends from approximately $11.63 on the downside to $21.19 on the upside. A TBPH 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 TBPH IV rank near 24.62% 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 TBPH at 101.70%. As a Healthcare name, TBPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TBPH-specific events.
TBPH 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. TBPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TBPH alongside the broader basket even when TBPH-specific fundamentals are unchanged. Always rebuild the position from current TBPH chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on TBPH?
- A strangle on TBPH is the strangle strategy applied to TBPH (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 TBPH stock trading near $16.41, the strikes shown on this page are snapped to the nearest listed TBPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TBPH 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 TBPH strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 101.70%), 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 TBPH strangle?
- The breakeven for the TBPH strangle priced on this page is no defined breakeven on the modeled curve 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 TBPH market-implied 1-standard-deviation expected move is approximately 29.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on TBPH?
- Strangles on TBPH 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 TBPH chain.
- How does current TBPH implied volatility affect this strangle?
- TBPH ATM IV is at 101.70% with IV rank near 24.62%, 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.