TMCI Strangle Strategy

TMCI (Treace Medical Concepts, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

Treace Medical Concepts, Inc., an orthopedic medical device company, engages in the design, manufacture, and marketing of medical devices for foot and ankle surgeons in the United States. It offers Lapiplasty procedure that allows podiatric surgeons to treat all three dimensions of the bunion, providing patients with a cosmetic and medical improvement. The company also provides Lapiplasty Mini-Incision precision system. In addition, it offers products to address ancillary surgical procedures, including akin osteotomies, weil osteotomies, intercuneiform stabilization, lesser tarsometatarsal joint fusions, and autograft bone harvesting, as well as for MTP fusion. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra Beach, Florida.

TMCI (Treace Medical Concepts, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $164.1M, a beta of 1.11 versus the broader market, a 52-week range of 1.17-7.78, average daily share volume of 828K, a public-listing history dating back to 2021, approximately 477 full-time employees. These structural characteristics shape how TMCI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.11 places TMCI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a strangle on TMCI?

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 TMCI snapshot

As of May 15, 2026, spot at $2.69, ATM IV 76.20%, IV rank 15.06%, expected move 21.85%. The strangle on TMCI 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 TMCI specifically: TMCI IV at 76.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a TMCI strangle, with a market-implied 1-standard-deviation move of approximately 21.85% (roughly $0.59 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 TMCI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMCI should anchor to the underlying notional of $2.69 per share and to the trader's directional view on TMCI stock.

TMCI strangle setup

The TMCI 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 TMCI near $2.69, the first option leg uses a $2.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMCI 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 TMCI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$2.82	N/A
Buy 1	Put	$2.56	N/A

TMCI 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.

TMCI strangle payoff curve

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

Strangles on TMCI 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 TMCI chain.

TMCI thesis for this strangle

The market-implied 1-standard-deviation range for TMCI extends from approximately $2.10 on the downside to $3.28 on the upside. A TMCI 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 TMCI IV rank near 15.06% 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 TMCI at 76.20%. As a Healthcare name, TMCI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMCI-specific events.

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

Frequently asked questions

What is a strangle on TMCI?: A strangle on TMCI is the strangle strategy applied to TMCI (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 TMCI stock trading near $2.69, the strikes shown on this page are snapped to the nearest listed TMCI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TMCI 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 TMCI strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 76.20%), 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 TMCI strangle?: The breakeven for the TMCI 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 TMCI market-implied 1-standard-deviation expected move is approximately 21.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on TMCI?: Strangles on TMCI 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 TMCI chain.
How does current TMCI implied volatility affect this strangle?: TMCI ATM IV is at 76.20% with IV rank near 15.06%, 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.