How are TGT 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 TGT strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 43.44%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$682.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TGT strangle?

The breakeven for the TGT strangle priced on this page is roughly $108.18 and $133.83 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 TGT market-implied 1-standard-deviation expected move is approximately 12.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TGT implied volatility affect this strangle?

TGT ATM IV is at 43.44% with IV rank near 53.84%, 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.

TGT Strangle Strategy

TGT (Target Corporation), in the Consumer Defensive sector, (Discount Stores industry), listed on NYSE.

Target Corporation operates as a general merchandise retailer in the United States. The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, home décor products, electronics, toys, seasonal offerings, food, and other merchandise; and beauty and household essentials. It also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings. The company sells its products through its stores; and digital channels, including Target.com. As of March 09, 2022, the company operated approximately 2,000 stores. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.

TGT (Target Corporation) trades in the Consumer Defensive sector, specifically Discount Stores, with a market capitalization of approximately $55.01B, a trailing P/E of 14.85, a beta of 1.01 versus the broader market, a 52-week range of 83.44-133.1, average daily share volume of 5.6M, a public-listing history dating back to 1967, approximately 440K full-time employees. These structural characteristics shape how TGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places TGT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TGT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on TGT?

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 TGT snapshot

As of May 15, 2026, spot at $120.71, ATM IV 43.44%, IV rank 53.84%, expected move 12.46%. The strangle on TGT 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 28-day expiry.

Why this strangle structure on TGT specifically: TGT IV at 43.44% 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 12.46% (roughly $15.03 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 TGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TGT should anchor to the underlying notional of $120.71 per share and to the trader's directional view on TGT stock.

TGT strangle setup

The TGT 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 TGT near $120.71, the first option leg uses a $127.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TGT 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 TGT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$127.00	$3.48
Buy 1	Put	$115.00	$3.35

TGT strangle risk and reward

Net Premium / Debit: -$682.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$682.50
Breakeven(s): $108.18, $133.83
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.

TGT strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on TGT. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$10,816.50
$26.70	-77.9%	+$8,147.65
$53.39	-55.8%	+$5,478.79
$80.08	-33.7%	+$2,809.94
$106.76	-11.6%	+$141.08
$133.45	+10.6%	-$37.23
$160.14	+32.7%	+$2,631.63
$186.83	+54.8%	+$5,300.48
$213.52	+76.9%	+$7,969.33
$240.21	+99.0%	+$10,638.19

When traders use strangle on TGT

Strangles on TGT 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 TGT chain.

TGT thesis for this strangle

The market-implied 1-standard-deviation range for TGT extends from approximately $105.68 on the downside to $135.74 on the upside. A TGT 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 TGT IV rank near 53.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on TGT should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, TGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TGT-specific events.

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

Frequently asked questions

What is a strangle on TGT?: A strangle on TGT is the strangle strategy applied to TGT (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 TGT stock trading near $120.71, the strikes shown on this page are snapped to the nearest listed TGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TGT 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 TGT strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 43.44%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$682.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TGT strangle?: The breakeven for the TGT strangle priced on this page is roughly $108.18 and $133.83 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 TGT market-implied 1-standard-deviation expected move is approximately 12.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on TGT?: Strangles on TGT 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 TGT chain.
How does current TGT implied volatility affect this strangle?: TGT ATM IV is at 43.44% with IV rank near 53.84%, 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.