Straddle Calculator

Search a symbol to visualize the potential profit and loss for a straddle option strategy.

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What is a straddle?

DirectionalUnlimited ProfitLimited Loss

A straddle is an easy to understand volatility strategy that allows you to profit from moves in either direction. Since it involves buying both a call and a put, it is an expensive strategy and needs a big move to cover its cost.

Time is harmful to this strategy since it is made up of long options, but volatility is your friend. You may consider buying a straddle before earnings to profit off any big move after earnings (but keep IV crush in mind!), or to take advantage of the rising IV before earnings.

AProfitLossStock Price (at expiration)
  • Buy a put at strike A
  • Buy a call at strike A