TXMD Strangle Strategy

TXMD (TherapeuticsMD, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

TherapeuticsMD, Inc. operates as a women's healthcare company in the United States. The company offers IMVEXXY for the treatment of moderate-to-severe dyspareunia; BIJUVA, a bio-identical hormone therapy combination of 17ß-estradiol and progesterone for the treatment of moderate-to-severe vasomotor symptoms; and ANNOVERA, a ring-shaped contraceptive vaginal system. Its preclinical projects include the development of TX-005HR, a progesterone-alone transdermal cream; TX-006HR, an estradiol and progesterone transdermal cream; TX-007HR and TX-008HR, which are transdermal patch product candidates; and TX-009HR, an oral progesterone and estradiol formulation. It also manufactures and distributes branded and generic prescription prenatal vitamins under the vitaTrue, vitaPearl, vitaMedMD, and BocaGreenMD Prena1 brands. The company sells its prescription pharmaceutical products and prenatal vitamin products to wholesale distributors and retail pharmacy distributors. TherapeuticsMD, Inc. was founded in 2008 and is headquartered in Boca Raton, Florida.

TXMD (TherapeuticsMD, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $23.4M, a trailing P/E of 130.61, a beta of 0.58 versus the broader market, a 52-week range of 0.98-2.95, average daily share volume of 25K, a public-listing history dating back to 2007, approximately 1 full-time employees. These structural characteristics shape how TXMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.58 indicates TXMD 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 130.61 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a strangle on TXMD?

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 TXMD snapshot

As of May 15, 2026, spot at $2.02, ATM IV 23.80%, IV rank 1.85%, expected move 6.82%. The strangle on TXMD 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 TXMD specifically: TXMD IV at 23.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a TXMD strangle, with a market-implied 1-standard-deviation move of approximately 6.82% (roughly $0.14 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 TXMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on TXMD should anchor to the underlying notional of $2.02 per share and to the trader's directional view on TXMD stock.

TXMD strangle setup

The TXMD 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 TXMD near $2.02, the first option leg uses a $2.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TXMD 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 TXMD shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$2.12N/A
Buy 1Put$1.92N/A

TXMD 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.

TXMD strangle payoff curve

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

Strangles on TXMD 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 TXMD chain.

TXMD thesis for this strangle

The market-implied 1-standard-deviation range for TXMD extends from approximately $1.88 on the downside to $2.16 on the upside. A TXMD 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 TXMD IV rank near 1.85% 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 TXMD at 23.80%. As a Healthcare name, TXMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TXMD-specific events.

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

Frequently asked questions

What is a strangle on TXMD?
A strangle on TXMD is the strangle strategy applied to TXMD (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 TXMD stock trading near $2.02, the strikes shown on this page are snapped to the nearest listed TXMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TXMD 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 TXMD strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 23.80%), 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 TXMD strangle?
The breakeven for the TXMD 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 TXMD market-implied 1-standard-deviation expected move is approximately 6.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on TXMD?
Strangles on TXMD 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 TXMD chain.
How does current TXMD implied volatility affect this strangle?
TXMD ATM IV is at 23.80% with IV rank near 1.85%, 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.

Related TXMD analysis