Long Straddle Options Strategy
A long straddle is an options strategy where you buy a call and a put at the same strike and expiration. It’s commonly used when you expect a large move in the underlying price but you’re unsure of the direction.
Breakevens
For a long straddle, total premium paid is Call Premium + Put Premium. Breakevens at expiration are typically: Lower BE = Strike − Total Premium and Upper BE = Strike + Total Premium.
Max Profit and Max Loss
Max loss is limited to the total premium paid (plus fees). Max profit is theoretically large: the upside can be substantial if the underlying rallies, and the downside can be substantial if the underlying falls sharply.
Notes
This calculator shows expiration payoff. Real P&L before expiration depends on implied volatility, time decay, and bid/ask spreads.