How are XOM 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 XOM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.53%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$353.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XOM strangle?

The breakeven for the XOM strangle priced on this page is roughly $126.47 and $148.53 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 XOM market-implied 1-standard-deviation expected move is approximately 7.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XOM implied volatility affect this strangle?

XOM ATM IV is at 27.53% with IV rank near 53.68%, 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.

XOM Strangle Strategy

XOM (Exxon Mobil Corporation), in the Energy sector, (Oil & Gas Integrated industry), listed on NYSE.

Exxon Mobil Corporation is a global energy firm that undertakes the exploration and extraction of oil and natural gas resources across its domestic operations and international territories. The company organizes its vast activities into three primary divisions: Upstream, Downstream, and Chemical. Beyond resource acquisition, Exxon Mobil is deeply engaged in the manufacturing, commercial trading, logistical transportation, and marketing of crude oil, natural gas, refined petroleum goods, a wide array of petrochemicals (including olefins, polyolefins, and aromatics), and other specialized chemical products. Furthermore, the company is actively developing solutions in carbon capture and storage, hydrogen, and biofuels. As of December 31, 2021, the corporation maintained approximately 20,528 net operational wells with verified reserves. Founded in 1870, Exxon Mobil's corporate headquarters are located in Irving, Texas.

XOM (Exxon Mobil Corporation) trades in the Energy sector, specifically Oil & Gas Integrated, with a market capitalization of approximately $565.95B, a trailing P/E of 22.56, a beta of 0.15 versus the broader market, a 52-week range of 105.53-176.41, average daily share volume of 19.0M, a public-listing history dating back to 1978, approximately 61K full-time employees. These structural characteristics shape how XOM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.15 indicates XOM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. XOM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on XOM?

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 XOM snapshot

As of June 29, 2026, spot at $136.19, ATM IV 27.53%, IV rank 53.68%, expected move 7.89%. The strangle on XOM 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 32-day expiry.

Why this strangle structure on XOM specifically: XOM IV at 27.53% 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 7.89% (roughly $10.75 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XOM expiries trade a higher absolute premium for lower per-day decay. Position sizing on XOM should anchor to the underlying notional of $136.19 per share and to the trader's directional view on XOM stock.

XOM strangle setup

The XOM 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 XOM near $136.19, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XOM chain at a 32-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 XOM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$145.00	$1.70
Buy 1	Put	$130.00	$1.83

XOM strangle risk and reward

Net Premium / Debit: -$353.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$353.00
Breakeven(s): $126.47, $148.53
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.

XOM strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on XOM. 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	-100.0%	+$12,646.00
$30.12	-77.9%	+$9,634.87
$60.23	-55.8%	+$6,623.75
$90.34	-33.7%	+$3,612.62
$120.46	-11.6%	+$601.50
$150.57	+10.6%	+$203.63
$180.68	+32.7%	+$3,214.75
$210.79	+54.8%	+$6,225.88
$240.90	+76.9%	+$9,237.01
$271.01	+99.0%	+$12,248.13

When traders use strangle on XOM

Strangles on XOM 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 XOM chain.

XOM thesis for this strangle

The market-implied 1-standard-deviation range for XOM extends from approximately $125.44 on the downside to $146.94 on the upside. A XOM 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 XOM IV rank near 53.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on XOM should anchor more to the directional view and the expected-move geometry. As a Energy name, XOM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XOM-specific events.

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

Frequently asked questions

What is a strangle on XOM?: A strangle on XOM is the strangle strategy applied to XOM (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 XOM stock trading near $136.19, the strikes shown on this page are snapped to the nearest listed XOM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XOM 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 XOM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.53%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$353.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XOM strangle?: The breakeven for the XOM strangle priced on this page is roughly $126.47 and $148.53 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 XOM market-implied 1-standard-deviation expected move is approximately 7.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on XOM?: Strangles on XOM 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 XOM chain.
How does current XOM implied volatility affect this strangle?: XOM ATM IV is at 27.53% with IV rank near 53.68%, 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.