How are VIR 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 VIR strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 68.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$137.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VIR strangle?

The breakeven for the VIR strangle priced on this page is roughly $7.63 and $11.38 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 VIR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VIR implied volatility affect this strangle?

VIR ATM IV is at 68.40% with IV rank near 9.56%, 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.

VIR Strangle Strategy

VIR (Vir Biotechnology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Vir Biotechnology, Inc. operates as an immunology company with commercialized products, dedicated to devising therapeutic solutions for the treatment and prevention of significant infectious diseases. Its pipeline features several key candidates: Sotrovimab (branded as Xevudy, or VIR-7832), a neutralizing monoclonal antibody for both treating and preventing SARS-CoV-2 infection; VIR-2218 and VIR-3434, aimed at hepatitis B virus; VIR-2482, targeting the prevention of influenza A virus; and VIR-1111, designed to prevent human immunodeficiency virus. The firm maintains a robust network of strategic partnerships and collaborations. These include grant support from organizations like the Bill & Melinda Gates Foundation and the National Institutes of Health. It holds option and licensing arrangements with entities such as Brii Biosciences Limited, and a collaboration and license agreement with Alnylam Pharmaceuticals, Inc. Further licensing relationships exist with The Rockefeller University and MedImmune, Inc.

VIR (Vir Biotechnology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.51B, a beta of 1.59 versus the broader market, a 52-week range of 4.25-11.66, average daily share volume of 1.8M, a public-listing history dating back to 2019, approximately 367 full-time employees. These structural characteristics shape how VIR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.59 indicates VIR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a strangle on VIR?

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.

VIR snapshot

As of August 14, 2026, spot at $9.23, ATM IV 68.40%, IV rank 9.56%, expected move 19.61%. The strangle on VIR 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 63-day expiry.

Why this strangle structure on VIR specifically: VIR IV at 68.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a VIR strangle, with a market-implied 1-standard-deviation move of approximately 19.61% (roughly $1.81 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VIR expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIR should anchor to the underlying notional of $9.23 per share and to the trader's directional view on VIR stock.

VIR strangle setup

The VIR 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 VIR at $9.23 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIR chain at a 63-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 VIR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$10.00	$0.58
Buy 1	Put	$9.00	$0.80

VIR strangle risk and reward

Net Premium / Debit: -$137.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$137.50
Breakeven(s): $7.63, $11.38
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.

VIR strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on VIR. 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	-99.9%	+$761.50
$2.05	-77.8%	+$557.53
$4.09	-55.7%	+$353.56
$6.13	-33.6%	+$149.59
$8.17	-11.5%	-$54.38
$10.21	+10.6%	-$116.65
$12.25	+32.7%	+$87.32
$14.29	+54.8%	+$291.29
$16.33	+76.9%	+$495.26
$18.37	+99.0%	+$699.23

When traders use strangle on VIR

Strangles on VIR 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 VIR chain.

VIR thesis for this strangle

The market-implied 1-standard-deviation range for VIR extends from approximately $7.42 on the downside to $11.04 on the upside. A VIR 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 VIR IV rank near 9.56% 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 VIR at 68.40%. As a Healthcare name, VIR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIR-specific events.

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

Frequently asked questions

What is a strangle on VIR?: A strangle on VIR is the strangle strategy applied to VIR (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 VIR stock at $9.23 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed VIR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are VIR 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 VIR strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 68.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$137.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VIR strangle?: The breakeven for the VIR strangle priced on this page is roughly $7.63 and $11.38 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 VIR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on VIR?: Strangles on VIR 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 VIR chain.
How does current VIR implied volatility affect this strangle?: VIR ATM IV is at 68.40% with IV rank near 9.56%, 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.