How are TECK 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 TECK strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 53.05%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$515.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TECK strangle?

The breakeven for the TECK strangle priced on this page is roughly $51.85 and $67.15 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 TECK market-implied 1-standard-deviation expected move is approximately 15.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TECK implied volatility affect this strangle?

TECK ATM IV is at 53.05% with IV rank near 69.56%, 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.

TECK Strangle Strategy

TECK (Teck Resources Limited), in the Basic Materials sector, (Industrial Materials industry), listed on NYSE.

Established in Vancouver, Canada, in 1913, Teck Resources Limited is dedicated to the exploration, acquisition, development, and extraction of natural resources across Asia, Europe, and North America. The company organizes its operations into Steelmaking Coal, Copper, Zinc, Energy, and Corporate segments. Its diverse product offerings include steelmaking coal, copper, gold, blended bitumen, lead, silver, molybdenum, zinc, and zinc concentrates. Teck also produces specialized metals like indium and germanium, in addition to various chemicals and fertilizers. Furthermore, the company holds an interest in the Frontier oil sands projects located in Alberta's Athabasca region, and maintains stakes in exploration and development ventures spanning Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States. Formerly operating as Teck Cominco Limited, the company officially adopted the name Teck Resources Limited in April 2009.

TECK (Teck Resources Limited) trades in the Basic Materials sector, specifically Industrial Materials, with a market capitalization of approximately $28.06B, a trailing P/E of 21.85, a beta of 1.57 versus the broader market, a 52-week range of 30.98-71.25, average daily share volume of 3.1M, a public-listing history dating back to 2002, approximately 7K full-time employees. These structural characteristics shape how TECK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.57 indicates TECK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TECK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on TECK?

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 TECK snapshot

As of June 30, 2026, spot at $59.49, ATM IV 53.05%, IV rank 69.56%, expected move 15.21%. The strangle on TECK 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 31-day expiry.

Why this strangle structure on TECK specifically: TECK IV at 53.05% 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 15.21% (roughly $9.05 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TECK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TECK should anchor to the underlying notional of $59.49 per share and to the trader's directional view on TECK stock.

TECK strangle setup

The TECK 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 TECK near $59.49, the first option leg uses a $62.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TECK chain at a 31-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 TECK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$62.00	$2.73
Buy 1	Put	$57.00	$2.43

TECK strangle risk and reward

Net Premium / Debit: -$515.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$515.00
Breakeven(s): $51.85, $67.15
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.

TECK strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on TECK. 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%	+$5,184.00
$13.16	-77.9%	+$3,868.75
$26.31	-55.8%	+$2,553.51
$39.47	-33.7%	+$1,238.26
$52.62	-11.5%	-$76.98
$65.77	+10.6%	-$137.77
$78.92	+32.7%	+$1,177.48
$92.08	+54.8%	+$2,492.72
$105.23	+76.9%	+$3,807.97
$118.38	+99.0%	+$5,123.22

When traders use strangle on TECK

Strangles on TECK 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 TECK chain.

TECK thesis for this strangle

The market-implied 1-standard-deviation range for TECK extends from approximately $50.44 on the downside to $68.54 on the upside. A TECK 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 TECK IV rank near 69.56% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on TECK should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, TECK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TECK-specific events.

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

Frequently asked questions

What is a strangle on TECK?: A strangle on TECK is the strangle strategy applied to TECK (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 TECK stock trading near $59.49, the strikes shown on this page are snapped to the nearest listed TECK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TECK 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 TECK strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 53.05%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$515.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TECK strangle?: The breakeven for the TECK strangle priced on this page is roughly $51.85 and $67.15 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 TECK market-implied 1-standard-deviation expected move is approximately 15.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on TECK?: Strangles on TECK 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 TECK chain.
How does current TECK implied volatility affect this strangle?: TECK ATM IV is at 53.05% with IV rank near 69.56%, 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.