Straddle Calculator
Calculate the cost, breakeven points, and profit potential of a long straddle. Enter the strike price and premiums for the call and put to see how far the stock needs to move for the trade to profit.
Enter your strike price and premiums, then click Calculate to see your long straddle cost, breakeven points, and profit potential.
For educational purposes only. Not financial advice. Read full disclaimer
Related Tools
Options Profit Calculator
Calculate P/L for calls and puts at expiration
Implied Volatility Calculator
Check IV levels before entering a straddle
Expected Move Calculator
See the market-implied price range for expiration
Explore all options tools in the Options category →
Long Straddle Formulas
Total Cost = (Call Premium + Put Premium) × 100 × Contracts
Max Loss = Total Cost (if stock expires at strike)
Breakeven Upper = Strike + Call Premium + Put Premium
Breakeven Lower = Strike − Call Premium − Put Premium
Max Profit (Upside) = Unlimited
Max Profit (Downside) = (Strike − Total Premium per Share) × 100 × Contracts
Worked Examples
Example 1: AAPL Earnings Straddle
You buy 1 AAPL $150 call for $6.00 and 1 AAPL $150 put for $5.50 before earnings.
- Total Cost = ($6.00 + $5.50) × 100 = $1,150
- Max Loss = $1,150 (if AAPL expires at $150)
- Breakeven Upper = $150 + $11.50 = $161.50
- Breakeven Lower = $150 − $11.50 = $138.50
- Max Profit (Downside) = ($150 − $11.50) × 100 = $13,850 (if stock goes to $0)
Example 2: SPY Straddle (2 Contracts)
You buy 2 SPY $450 calls for $8.00 and 2 SPY $450 puts for $7.00.
- Total Cost = ($8.00 + $7.00) × 100 × 2 = $3,000
- Max Loss = $3,000 (if SPY expires at $450)
- Breakeven Upper = $450 + $15.00 = $465.00
- Breakeven Lower = $450 − $15.00 = $435.00
- Breakeven Width = $465 − $435 = $30.00
How to Use This Calculator
- Enter the strike price — the at-the-money strike where you will buy both the call and the put.
- Enter the call premium — the per-share price of the call option you are buying.
- Enter the put premium — the per-share price of the put option you are buying.
- Enter the number of contracts — each straddle consists of one call and one put, so 1 contract means 1 call + 1 put.
- Click Calculate — review the total cost, breakeven points, and profit potential to decide if the expected move justifies the premium.
Frequently Asked Questions
- When should I use a long straddle?
- A long straddle is best when you expect a large price move but are unsure of the direction. Common triggers include earnings announcements, FDA decisions, major economic data releases, or any binary event where the stock is likely to move significantly. The key is that you need the move to be large enough to exceed the combined premium paid.
- How does implied volatility affect a straddle?
- Implied volatility (IV) has a major impact on straddle pricing. When IV is high, both the call and put premiums are expensive, making the straddle more costly and requiring a larger move to profit. Buying straddles when IV is low (before a catalyst) and selling when IV spikes is the ideal scenario. A drop in IV after entry — known as a vol crush — can cause losses even if the stock moves in your favor.
- Is a straddle a good earnings play?
- Straddles are popular for earnings but come with a catch: implied volatility is already elevated before earnings, pricing in the expected move. After the announcement, IV collapses (vol crush), which hurts the straddle. For a straddle to profit on earnings, the stock must move more than the market already expects. Check the expected move before entering.
- How are straddle breakeven points calculated?
- The upper breakeven equals the strike price plus the total premium paid (call + put). The lower breakeven equals the strike price minus the total premium paid. The stock must close above the upper breakeven or below the lower breakeven at expiration for the trade to be profitable. Between those two points, you lose some or all of the premium.
- What is the difference between a long straddle and a short straddle?
- A long straddle buys both a call and a put, paying premium upfront. You profit from large moves in either direction and your max loss is the premium paid. A short straddle sells both options, collecting premium. You profit if the stock stays near the strike, but face unlimited risk if it moves sharply. Long straddles bet on volatility; short straddles bet on stability.