How are ZION 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 ZION strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 29.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$367.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ZION strangle?

The breakeven for the ZION strangle priced on this page is roughly $53.83 and $66.18 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 ZION market-implied 1-standard-deviation expected move is approximately 8.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ZION implied volatility affect this strangle?

ZION ATM IV is at 29.10% with IV rank near 17.82%, 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.

ZION Strangle Strategy

ZION (Zions Bancorporation, National Association), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.

Zions Bancorporation, National Association provides various banking and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers corporate banking services; commercial banking, including a focus on small- and medium-sized businesses; commercial real estate banking services; municipal and public finance services; retail banking, including residential mortgages; trust services; wealth management and private client banking services; and capital markets products and services. As of December 31, 2020, it operated 422 branches, which included 273 owned and 149 leased. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.

ZION (Zions Bancorporation, National Association) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $8.77B, a trailing P/E of 9.11, a beta of 0.82 versus the broader market, a 52-week range of 45.52-66.18, average daily share volume of 1.7M, a public-listing history dating back to 1980, approximately 9K full-time employees. These structural characteristics shape how ZION stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places ZION roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 9.11 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ZION pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a strangle on ZION?

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 ZION snapshot

As of May 15, 2026, spot at $59.48, ATM IV 29.10%, IV rank 17.82%, expected move 8.34%. The strangle on ZION 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 63-day expiry.

Why this strangle structure on ZION specifically: ZION IV at 29.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a ZION strangle, with a market-implied 1-standard-deviation move of approximately 8.34% (roughly $4.96 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 ZION expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZION should anchor to the underlying notional of $59.48 per share and to the trader's directional view on ZION stock.

ZION strangle setup

The ZION 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 ZION near $59.48, the first option leg uses a $62.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ZION 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 ZION shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$62.50	$1.73
Buy 1	Put	$57.50	$1.95

ZION strangle risk and reward

Net Premium / Debit: -$367.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$367.50
Breakeven(s): $53.83, $66.18
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.

ZION strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle on ZION. 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%	+$5,381.50
$13.16	-77.9%	+$4,066.47
$26.31	-55.8%	+$2,751.45
$39.46	-33.7%	+$1,436.42
$52.61	-11.5%	+$121.40
$65.76	+10.6%	-$41.37
$78.91	+32.7%	+$1,273.65
$92.06	+54.8%	+$2,588.68
$105.21	+76.9%	+$3,903.70
$118.36	+99.0%	+$5,218.73

When traders use strangle on ZION

Strangles on ZION 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 ZION chain.

ZION thesis for this strangle

The market-implied 1-standard-deviation range for ZION extends from approximately $54.52 on the downside to $64.44 on the upside. A ZION 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 ZION IV rank near 17.82% 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 ZION at 29.10%. As a Financial Services name, ZION options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZION-specific events.

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

Frequently asked questions

What is a strangle on ZION?: A strangle on ZION is the strangle strategy applied to ZION (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 ZION stock trading near $59.48, the strikes shown on this page are snapped to the nearest listed ZION chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ZION 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 ZION strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 29.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$367.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ZION strangle?: The breakeven for the ZION strangle priced on this page is roughly $53.83 and $66.18 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 ZION market-implied 1-standard-deviation expected move is approximately 8.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a strangle on ZION?: Strangles on ZION 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 ZION chain.
How does current ZION implied volatility affect this strangle?: ZION ATM IV is at 29.10% with IV rank near 17.82%, 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.