Long Straddle Calculator
See the total premium, both break-evens and the percentage move the stock has to make for a call and put at one strike to pay off.
At expiration with the stock at $105.00
-$185.00
Max loss -$685.00
At expiration with the stock at $105.00
-$185.00
Max profit
Unlimited
Max loss
-$685.00
Break-evens
$93.15, $106.85
Solid green and red: at expirationAmber: day 15, modeledDotted line: current price
- Net debit
- $685.00
- Modeled on day 15 at $105.00
- -$26.69
- Total premium
- $685.00
- Move needed to break even
- $6.85 (6.8%)
- Delta (shares)
- 6.5
- Gamma
- 9.25
- Theta per day
- -$11.39
- Vega per point
- +$22.80
Modeled profit and loss by stock price and day
| Stock | Day 0 | Day 8 | Day 15 | Day 23 | Expiry |
|---|---|---|---|---|---|
| $111.88 | $611 | $567 | $535 | $512 | $503 |
| $108.91 | $379 | $318 | $266 | $220 | $206 |
| $105.94 | $190 | $110 | $34 | -$53 | -$91 |
| $102.97 | $59 | -$36 | -$131 | -$265 | -$388 |
| $100.00 | $0.00 | -$98 | -$200 | -$354 | -$685 |
| $97.03 | $22 | -$67 | -$156 | -$280 | -$388 |
| $94.06 | $124 | $57 | -$5.60 | -$73 | -$91 |
| $91.09 | $298 | $255 | $223 | $202 | $206 |
| $88.12 | $525 | $505 | $495 | $496 | $503 |
How to calculate a long straddle
A long straddle buys a call and a put at the same strike and expiration, so it profits from a large move in either direction. The combined premium is the maximum loss, and it happens if the stock finishes exactly at the strike.
The number that matters is the percentage move the stock has to make. Compare it with how far the stock usually moves over that period. A drop in implied volatility after an event can hurt the position even when the stock moves, which you can test with the volatility change input.
Total premium = (call premium + put premium) × 100. Break-evens = strike ± (call premium + put premium).
Worked example
With a stock at $250, you buy the $250 call for $12.00 and the $250 put for $11.00. You pay $2,300, and the break-evens are $227 and $273.
The stock has to move $23, or 9.2%, by expiration just to break even. At $290 the call is worth $40 and the position makes $1,700. At $250 it loses the full $2,300.
What the result does not account for
- Implied volatility falling after the event, which the model only shows if you enter a change.
- Dividends, and the two bid-ask spreads you cross.
- How likely the required move is, which this calculator does not estimate.
Frequently asked questions
Why do straddles lose money even when the stock moves?
The stock may not move far enough to cover both premiums, or implied volatility may fall after the event and lower both options. Use the volatility change input to test the second case.
What's the difference between a straddle and a strangle?
A straddle buys the call and the put at one strike. A strangle buys them at two different strikes, usually both out of the money, so it needs a larger move. The options profit calculator has both.
Related calculators
- Iron Condor CalculatorEnter four strikes and premiums to see the credit, the width of the profit zone, both break-evens and the loss if a wing is breached.
- Long Call Options CalculatorSee the cost, break-even and profit at any stock price for buying a call, and how much value it loses to time if the stock stands still.
- Long Put Options CalculatorSee the cost, break-even and downside profit for buying a put, including the maximum if the stock falls to zero.
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