Straddle and Strangle Calculator
Both break-evens, cost, and max loss for long or short straddles and strangles, and the move the stock needs to make.
Buy a call and a put at the same strike. Profits from a big move either way.
Figures are per position at expiration and include the 1 contract entered, at 100 shares each. They exclude commissions, assignment fees, and any early-assignment or dividend risk on short legs. Values before expiration differ, because time value and implied volatility still carry weight.
A straddle buys a call and a put at the same strike. A strangle does the same with the strikes apart. Either way you are buying movement, not direction: the position profits if the stock goes far enough in either direction, and loses if it sits still. Selling them inverts that, collecting premium in exchange for needing the stock to stay put.
Worked example. Buy the 100 call for $4.50 and the 100 put for $4.00. That costs $850 for one contract, and $850 is the entire risk. The break-evens are $91.50 and $108.50, so the stock has to move 8.5% in either direction just to get back to flat. Upside profit is unlimited; downside profit is capped only by the stock reaching zero.
Frequently asked questions
What is the difference between a straddle and a strangle?
Strikes. A straddle uses the same strike for both legs, usually at the money. A strangle uses a lower put and a higher call, which costs less because both start out of the money, but pushes the break-evens further apart so the stock has to move more.
How much does the stock have to move to profit?
For a long straddle, the total premium paid, in either direction. Buying a $100 straddle for $8.50 means break-evens at $91.50 and $108.50. Compare that required move against the expected move implied by option prices before opening the trade: if the market already implies a bigger move than you expect, you are paying too much.
Why did my straddle lose money when the stock moved?
Almost always implied volatility crush. Options are priced for an expected move, and after the event that drove the expectation, implied volatility falls sharply. If the actual move is smaller than the one already priced in, both legs lose value even though the stock did move.
Is selling a straddle safe if I think the stock will not move?
No. A short straddle has unlimited loss on the upside and very large loss on the downside, in exchange for a capped credit. It is one of the highest-risk retail positions and typically carries substantial margin. Defined-risk alternatives such as the iron butterfly express the same view with a floor under the loss.
Do these figures include time value?
No, they are values at expiration. Long straddles and strangles lose value every day the stock does not move, so a position that is profitable at expiration can be underwater for most of its life. Use the Black-Scholes pricing calculator to value the legs today.
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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.