How are UNM 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 UNM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 22.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$172.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UNM strangle?

The breakeven for the UNM strangle priced on this page is roughly $75.78 and $86.73 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 UNM market-implied 1-standard-deviation expected move is approximately 6.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UNM implied volatility affect this strangle?

UNM ATM IV is at 22.10% with IV rank near 22.47%, 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.

UNM Strangle Strategy

UNM (Unum Group), in the Financial Services sector, (Insurance - Life industry), listed on NYSE.

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, and Poland. It operates through Unum US, Unum International, Colonial Life, and Closed Block segments. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. It also provides group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other products. The company sells its products primarily to employers for the benefit of employees. Unum Group sells its products through field sales personnel, independent brokers, consultants, and independent contractor agency sales force.

UNM (Unum Group) trades in the Financial Services sector, specifically Insurance - Life, with a market capitalization of approximately $12.85B, a trailing P/E of 16.89, a beta of 0.23 versus the broader market, a 52-week range of 68.28-83.13, average daily share volume of 1.6M, a public-listing history dating back to 1986, approximately 11K full-time employees. These structural characteristics shape how UNM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.23 indicates UNM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. UNM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on UNM?

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 UNM snapshot

As of May 15, 2026, spot at $81.80, ATM IV 22.10%, IV rank 22.47%, expected move 6.34%. The strangle on UNM 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 UNM specifically: UNM IV at 22.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a UNM strangle, with a market-implied 1-standard-deviation move of approximately 6.34% (roughly $5.18 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 UNM expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNM should anchor to the underlying notional of $81.80 per share and to the trader's directional view on UNM stock.

UNM strangle setup

The UNM 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 UNM near $81.80, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNM 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 UNM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.00	$0.85
Buy 1	Put	$77.50	$0.88

UNM strangle risk and reward

Net Premium / Debit: -$172.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$172.50
Breakeven(s): $75.78, $86.73
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.

UNM strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on UNM. 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%	+$7,576.50
$18.10	-77.9%	+$5,767.97
$36.18	-55.8%	+$3,959.43
$54.27	-33.7%	+$2,150.90
$72.35	-11.6%	+$342.37
$90.44	+10.6%	+$371.16
$108.52	+32.7%	+$2,179.70
$126.61	+54.8%	+$3,988.23
$144.69	+76.9%	+$5,796.76
$162.78	+99.0%	+$7,605.29

When traders use strangle on UNM

Strangles on UNM 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 UNM chain.

UNM thesis for this strangle

The market-implied 1-standard-deviation range for UNM extends from approximately $76.62 on the downside to $86.98 on the upside. A UNM 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 UNM IV rank near 22.47% 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 UNM at 22.10%. As a Financial Services name, UNM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNM-specific events.

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

Frequently asked questions

What is a strangle on UNM?: A strangle on UNM is the strangle strategy applied to UNM (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 UNM stock trading near $81.80, the strikes shown on this page are snapped to the nearest listed UNM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UNM 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 UNM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 22.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$172.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UNM strangle?: The breakeven for the UNM strangle priced on this page is roughly $75.78 and $86.73 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 UNM market-implied 1-standard-deviation expected move is approximately 6.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on UNM?: Strangles on UNM 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 UNM chain.
How does current UNM implied volatility affect this strangle?: UNM ATM IV is at 22.10% with IV rank near 22.47%, 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.