How are AVMA 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 AVMA straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 10.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$262.95 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVMA straddle?

The breakeven for the AVMA straddle priced on this page is roughly $73.29 and $78.72 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 AVMA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVMA implied volatility affect this straddle?

AVMA ATM IV is at 10.60% with IV rank near 0.94%, 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.

AVMA Straddle Strategy

AVMA (Avantis Moderate Allocation ETF 9), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The Avantis Moderate Allocation ETF 9 utilizes a strategic investment approach to provide extensive market exposure, with a particular focus on assets anticipated to deliver superior returns. It achieves this by investing in a range of other Avantis exchange-traded funds (ETFs) across both equity and fixed income markets. While it seeks to capture the benefits often found in indexing, like broad diversification, low turnover rates, and clear exposure, it also incorporates an active element, making investment choices informed by current market pricing to add value. The fund is managed through an efficient portfolio and trading process, specifically designed to optimize returns while minimizing unneeded risks and trading costs. Overall, this strategy aims to offer investors an effective and comprehensive allocation across the entire market landscape.

AVMA (Avantis Moderate Allocation ETF 9) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $48.0M, a beta of 0.91 versus the broader market, a 52-week range of 63.01-74.52, average daily share volume of 7K, a public-listing history dating back to 2023. These structural characteristics shape how AVMA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places AVMA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVMA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on AVMA?

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.

AVMA snapshot

As of August 14, 2026, spot at $75.53, ATM IV 10.60%, IV rank 0.94%, expected move 3.04%. The straddle on AVMA 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 AVMA specifically: AVMA IV at 10.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVMA straddle, with a market-implied 1-standard-deviation move of approximately 3.04% (roughly $2.30 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 AVMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVMA should anchor to the underlying notional of $75.53 per share and to the trader's directional view on AVMA etf.

AVMA straddle setup

The AVMA 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 AVMA at $75.53 on that close, the first option leg uses a $76.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVMA 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 AVMA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$76.00	$0.89
Buy 1	Put	$76.00	$1.83

AVMA straddle risk and reward

Net Premium / Debit: -$271.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$262.95
Breakeven(s): $73.29, $78.72
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.

AVMA straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on AVMA. 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%	+$7,327.50
$16.71	-77.9%	+$5,657.60
$33.41	-55.8%	+$3,987.70
$50.11	-33.7%	+$2,317.80
$66.81	-11.6%	+$647.90
$83.50	+10.6%	+$479.00
$100.20	+32.7%	+$2,148.90
$116.90	+54.8%	+$3,818.80
$133.60	+76.9%	+$5,488.70
$150.30	+99.0%	+$7,158.60

When traders use straddle on AVMA

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

AVMA thesis for this straddle

The market-implied 1-standard-deviation range for AVMA extends from approximately $73.23 on the downside to $77.83 on the upside. A AVMA 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 AVMA IV rank near 0.94% 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 AVMA at 10.60%. As a Financial Services name, AVMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVMA-specific events.

AVMA 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. AVMA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVMA alongside the broader basket even when AVMA-specific fundamentals are unchanged. Always rebuild the position from current AVMA chain quotes before placing a trade.

Frequently asked questions

What is a straddle on AVMA?: A straddle on AVMA is the straddle strategy applied to AVMA (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 AVMA etf at $75.53 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AVMA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AVMA 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 AVMA straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 10.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$262.95 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVMA straddle?: The breakeven for the AVMA straddle priced on this page is roughly $73.29 and $78.72 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 AVMA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on AVMA?: Straddles on AVMA are pure-volatility plays that profit from large moves in either direction; traders typically buy AVMA 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 AVMA implied volatility affect this straddle?: AVMA ATM IV is at 10.60% with IV rank near 0.94%, 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.