How are TFII 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 TFII strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$707.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TFII strangle?

The breakeven for the TFII strangle priced on this page is roughly $132.93 and $162.08 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 TFII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TFII implied volatility affect this strangle?

TFII ATM IV is at 36.10% with IV rank near 21.70%, 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.

TFII Strangle Strategy

TFII (TFI International Inc.), in the Industrials sector, (Trucking industry), listed on NYSE.

TFI International Inc. stands as a prominent provider of transportation and logistics solutions across North America, serving the United States, Canada, and Mexico. The company's diverse operations are strategically organized into four distinct divisions. Its Package and Courier segment focuses on the collection, shipment, and final delivery of various goods. The Less-Than-Truckload (LTL) division specializes in the efficient collection, consolidation, movement, and distribution of smaller freight shipments. The Truckload (TL) segment encompasses a range of services, including expedited shipping, flatbed transport, tank container operations, and dedicated routes, alongside truckload brokerage. This division handles full truckloads, transporting goods directly from the client's origin to their destination using either standard enclosed vans or specialized equipment.

TFII (TFI International Inc.) trades in the Industrials sector, specifically Trucking, with a market capitalization of approximately $12.00B, a trailing P/E of 33.05, a beta of 1.49 versus the broader market, a 52-week range of 80.63-167.69, average daily share volume of 383K, a public-listing history dating back to 2005, approximately 26K full-time employees. These structural characteristics shape how TFII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.49 indicates TFII has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TFII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on TFII?

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.

TFII snapshot

As of August 14, 2026, spot at $146.48, ATM IV 36.10%, IV rank 21.70%, expected move 10.35%. The strangle on TFII 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 35-day expiry.

Why this strangle structure on TFII specifically: TFII IV at 36.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a TFII strangle, with a market-implied 1-standard-deviation move of approximately 10.35% (roughly $15.16 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 TFII expiries trade a higher absolute premium for lower per-day decay. Position sizing on TFII should anchor to the underlying notional of $146.48 per share and to the trader's directional view on TFII stock.

TFII strangle setup

The TFII 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 TFII at $146.48 on that close, the first option leg uses a $155.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TFII 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 TFII shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$155.00	$3.65
Buy 1	Put	$140.00	$3.43

TFII strangle risk and reward

Net Premium / Debit: -$707.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$707.50
Breakeven(s): $132.93, $162.08
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.

TFII strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on TFII. 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%	+$13,291.50
$32.40	-77.9%	+$10,052.86
$64.78	-55.8%	+$6,814.21
$97.17	-33.7%	+$3,575.57
$129.56	-11.6%	+$336.93
$161.94	+10.6%	-$13.28
$194.33	+32.7%	+$3,225.36
$226.72	+54.8%	+$6,464.00
$259.10	+76.9%	+$9,702.65
$291.49	+99.0%	+$12,941.29

When traders use strangle on TFII

Strangles on TFII 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 TFII chain.

TFII thesis for this strangle

The market-implied 1-standard-deviation range for TFII extends from approximately $131.32 on the downside to $161.64 on the upside. A TFII 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 TFII IV rank near 21.70% 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 TFII at 36.10%. As a Industrials name, TFII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TFII-specific events.

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

Frequently asked questions

What is a strangle on TFII?: A strangle on TFII is the strangle strategy applied to TFII (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 TFII stock at $146.48 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TFII chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TFII 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 TFII strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$707.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TFII strangle?: The breakeven for the TFII strangle priced on this page is roughly $132.93 and $162.08 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 TFII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on TFII?: Strangles on TFII 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 TFII chain.
How does current TFII implied volatility affect this strangle?: TFII ATM IV is at 36.10% with IV rank near 21.70%, 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.