Home › Guides › Long Straddle

Long straddle calculator
betting on movement, not direction

A long straddle buys a call and a put at the same strike. You profit if the underlying moves far enough in either direction — the classic position for an event whose outcome you cannot predict but whose magnitude you can. The cost is that you pay for both sides, so the move has to be large enough to cover two premiums.

Outlook: Volatile — direction unknown

Max profit
—
best case at expiry
Max loss
—
worst case at expiry
Breakeven
—
where the trade turns even
Net debit / credit
—
to open the position
Your long straddle
Per-share premiums. One contract = 100 shares.
100 shares per contract
Profit at expiry Loss at expiry Breakeven Strikes & spot

How a long straddle pays

Total cost = call premium + put premium Upper breakeven = strike + total cost Lower breakeven = strike − total cost Max loss = total cost × 100 × contracts (at the strike) Max gain = unlimited to the upside
Worth naming. This is the position most often ruined by IV crush. Buying a straddle the day before earnings means paying peak implied volatility; the announcement resolves the uncertainty, IV collapses, and both legs lose value even when the stock gaps. Check the implied move against your breakevens before assuming a big print is enough.

What this does not model

Every figure here is the payoff at expiry. Before then your position is marked at market prices that still carry time value, so a trade can show a loss while sitting exactly where you wanted it — falling implied volatility alone will do that.

For the live version — real Greeks, current marks and what-if scenarios against actual chain data — that is what the GreeksView desk does, in your browser, on your own broker keys.

Frequently asked questions

How far does the stock need to move for a straddle to profit?
Further than the combined premium, in either direction. A 100-strike straddle costing $7.80 total needs the stock above $107.80 or below $92.20 at expiry — nearly 8% either way. That is the number to compare against the market's implied move, not against your gut.
What is the maximum loss on a long straddle?
The entire premium paid, which happens if the underlying finishes exactly at the strike. Both options expire worthless. It is one of the few positions where the worst case is the market doing nothing at all.
Why did my straddle lose money after earnings even though the stock moved?
Implied volatility crush. Before the announcement, options price in uncertainty; once it resolves, IV collapses across the chain. If the actual move was smaller than the implied move you paid for, both legs lose value despite the stock gapping.
Is a straddle or a strangle better?
Neither strictly. A straddle costs more and has closer breakevens; a strangle is cheaper with wider breakevens, needing a larger move. If you expect a very large move, the strangle is more efficient; if you expect a moderate one, the straddle's tighter breakevens are worth the extra cost.
Why does my broker show a different number than this calculator?
Because you are comparing a mark-to-market value against an expiry value. Until expiry your options still carry time value, and your broker prices them at what the market will pay right now. Time passing, or implied volatility falling, can show a loss on a position that would be profitable if expiry were today.

Run this against a live chain

GreeksView builds positions from real option chains with live Greeks, gamma exposure and what-if scenarios — in your browser, on your own broker keys.

Start free — no card required
Bring your own Alpaca and Finnhub keys. Free tier has no time limit.

Educational tool only — not investment advice, and not a recommendation to enter any position. Options involve substantial risk and are not suitable for every investor. Figures are theoretical, exclude commissions and taxes, and assume the position is held to expiry. GreeksView is not a broker and does not hold funds.