How are AIRR straddle max profit and max loss calculated?

Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the AIRR straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$744.95 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIRR straddle?

The breakeven for the AIRR straddle priced on this page is roughly $116.40 and $131.60 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AIRR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIRR implied volatility affect this straddle?

AIRR ATM IV is at 24.70% with IV rank near 2.69%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

AIRR Straddle Strategy

AIRR (First Trust RBA American Industrial RenaissanceTM ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

AIRR is passively managed to select large- and midcap US companies from the Russel 2500 with the following industries: Commercial Services & Supplies, Construction & Engineering, Electrical Equipment, Machinery, and Banks. Firms must also have a positive 12-months forward earnings consensus estimate to be considered in the index. AIRR excludes community banks outside traditional mid-western manufacturing hubs, like Pennsylvania, Wisconsin, Michigan, Ohio, Illinois, Indiana and Iowa. Firms with non-US sales of more than 25% are also excluded. The index is weighted using proprietary portfolio optimization method and ensures that Banks will have a 10% sector cap and issuers will not exceed a 4% weight. The Index is reconstituted and rebalanced quarterly.

AIRR (First Trust RBA American Industrial RenaissanceTM ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $10.73B, a beta of 1.28 versus the broader market, a 52-week range of 87.67-135.05, average daily share volume of 726K, a public-listing history dating back to 2014, approximately 107 full-time employees. These structural characteristics shape how AIRR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places AIRR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIRR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on AIRR?

A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.

AIRR snapshot

As of August 14, 2026, spot at $124.47, ATM IV 24.70%, IV rank 2.69%, expected move 7.08%. The straddle on AIRR below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this straddle structure on AIRR specifically: AIRR IV at 24.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIRR straddle, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $8.81 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIRR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIRR should anchor to the underlying notional of $124.47 per share and to the trader's directional view on AIRR etf.

AIRR straddle setup

The AIRR straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AIRR at $124.47 on that close, the first option leg uses a $124.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIRR chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AIRR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$124.00	$3.55
Buy 1	Put	$124.00	$4.05

AIRR straddle risk and reward

Net Premium / Debit: -$760.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$744.95
Breakeven(s): $116.40, $131.60
Risk / Reward Ratio: Unbounded

Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.

AIRR straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on AIRR. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$11,639.00
$27.53	-77.9%	+$8,887.01
$55.05	-55.8%	+$6,135.02
$82.57	-33.7%	+$3,383.03
$110.09	-11.6%	+$631.04
$137.61	+10.6%	+$600.95
$165.13	+32.7%	+$3,352.94
$192.65	+54.8%	+$6,104.93
$220.17	+76.9%	+$8,856.92
$247.69	+99.0%	+$11,608.91

When traders use straddle on AIRR

Straddles on AIRR are pure-volatility plays that profit from large moves in either direction; traders typically buy AIRR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.

AIRR thesis for this straddle

The market-implied 1-standard-deviation range for AIRR extends from approximately $115.66 on the downside to $133.28 on the upside. A AIRR long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current AIRR IV rank near 2.69% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AIRR at 24.70%. As a Financial Services name, AIRR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIRR-specific events.

AIRR straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AIRR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIRR alongside the broader basket even when AIRR-specific fundamentals are unchanged. Always rebuild the position from current AIRR chain quotes before placing a trade.

Frequently asked questions

What is a straddle on AIRR?: A straddle on AIRR is the straddle strategy applied to AIRR (etf). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With AIRR etf at $124.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AIRR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AIRR straddle max profit and max loss calculated?: Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the AIRR straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$744.95 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIRR straddle?: The breakeven for the AIRR straddle priced on this page is roughly $116.40 and $131.60 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AIRR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on AIRR?: Straddles on AIRR are pure-volatility plays that profit from large moves in either direction; traders typically buy AIRR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
How does current AIRR implied volatility affect this straddle?: AIRR ATM IV is at 24.70% with IV rank near 2.69%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.