How are BEDZ 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 BEDZ straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$249.47 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BEDZ straddle?

The breakeven for the BEDZ straddle priced on this page is roughly $35.45 and $40.55 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current BEDZ market-implied 1-standard-deviation expected move is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BEDZ implied volatility affect this straddle?

BEDZ ATM IV is at 37.90% with IV rank near 21.77%, 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.

BEDZ Straddle Strategy

BEDZ (AdvisorShares Hotel ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

International travel has experienced a remarkable surge, expanding by a factor of 57 since the emergence of modern tourism in the 1950s, based on data tracking global arrivals. Significant opportunities exist globally, with leading American hotel and accommodation providers extending their reach internationally to tap into diverse income sources. Furthermore, the worldwide travel and tourism sector contributes over 9.1% to the global economy. The Exchange Traded Fund (ETF) framework provides several advantages, such as optimized tax treatment, clear operational visibility, the flexibility of trading throughout the day, enhanced risk mitigation, and the convenience of utilizing limit orders. Following the COVID-19 pandemic, there is substantial pent-up demand, with a striking 88% of American consumers expressing eagerness to resume travel for both professional and personal purposes.

BEDZ (AdvisorShares Hotel ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.1M, a beta of 1.16 versus the broader market, a 52-week range of 30.453-37.78, average daily share volume of 2K, a public-listing history dating back to 2021. These structural characteristics shape how BEDZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.16 places BEDZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BEDZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on BEDZ?

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.

Current BEDZ snapshot

As of June 29, 2026, spot at $37.75, ATM IV 37.90%, IV rank 21.77%, expected move 10.87%. The straddle on BEDZ below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 18-day expiry.

Why this straddle structure on BEDZ specifically: BEDZ IV at 37.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a BEDZ straddle, with a market-implied 1-standard-deviation move of approximately 10.87% (roughly $4.10 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BEDZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on BEDZ should anchor to the underlying notional of $37.75 per share and to the trader's directional view on BEDZ etf.

BEDZ straddle setup

The BEDZ straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BEDZ near $37.75, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BEDZ chain at a 18-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 BEDZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$38.00	$1.18
Buy 1	Put	$38.00	$1.37

BEDZ straddle risk and reward

Net Premium / Debit: -$255.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$249.47
Breakeven(s): $35.45, $40.55
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.

BEDZ straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on BEDZ. 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%	+$3,544.00
$8.36	-77.9%	+$2,709.44
$16.70	-55.8%	+$1,874.87
$25.05	-33.7%	+$1,040.31
$33.39	-11.5%	+$205.75
$41.74	+10.6%	+$118.81
$50.08	+32.7%	+$953.38
$58.43	+54.8%	+$1,787.94
$66.78	+76.9%	+$2,622.50
$75.12	+99.0%	+$3,457.07

When traders use straddle on BEDZ

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

BEDZ thesis for this straddle

The market-implied 1-standard-deviation range for BEDZ extends from approximately $33.65 on the downside to $41.85 on the upside. A BEDZ 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 BEDZ IV rank near 21.77% 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 BEDZ at 37.90%. As a Financial Services name, BEDZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BEDZ-specific events.

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

Frequently asked questions

What is a straddle on BEDZ?: A straddle on BEDZ is the straddle strategy applied to BEDZ (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 BEDZ etf trading near $37.75, the strikes shown on this page are snapped to the nearest listed BEDZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BEDZ 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 BEDZ straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$249.47 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BEDZ straddle?: The breakeven for the BEDZ straddle priced on this page is roughly $35.45 and $40.55 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current BEDZ market-implied 1-standard-deviation expected move is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on BEDZ?: Straddles on BEDZ are pure-volatility plays that profit from large moves in either direction; traders typically buy BEDZ 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 BEDZ implied volatility affect this straddle?: BEDZ ATM IV is at 37.90% with IV rank near 21.77%, 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.