BPH Straddle Strategy
BPH (BP p.l.c. ADRhedged), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The series, under normal circumstances, invests at least 95% of its net assets in American Depositary Receipts (“ADRs”) of BP p.l.c. (the “Company”). The series will not invest directly in the company. The fund is non-diversified.
BPH (BP p.l.c. ADRhedged) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.4M, a beta of -0.31 versus the broader market, a 52-week range of 44.21-74.81, average daily share volume of 1K, a public-listing history dating back to 2025. These structural characteristics shape how BPH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.31 indicates BPH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BPH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on BPH?
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 BPH snapshot
As of May 15, 2026, spot at $69.77, ATM IV 29.60%, expected move 8.49%. The straddle on BPH 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 34-day expiry.
Why this straddle structure on BPH specifically: IV rank is unavailable in the current snapshot, so regime-based timing for BPH is inferred from ATM IV at 29.60% alone, with a market-implied 1-standard-deviation move of approximately 8.49% (roughly $5.92 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on BPH should anchor to the underlying notional of $69.77 per share and to the trader's directional view on BPH etf.
BPH straddle setup
The BPH 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 BPH near $69.77, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BPH chain at a 34-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 BPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $70.00 | $2.43 |
| Buy 1 | Put | $70.00 | $2.65 |
BPH straddle risk and reward
- Net Premium / Debit
- -$507.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$494.94
- Breakeven(s)
- $64.93, $75.08
- 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.
BPH straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on BPH. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$6,491.50 |
| $15.44 | -77.9% | +$4,948.96 |
| $30.86 | -55.8% | +$3,406.41 |
| $46.29 | -33.7% | +$1,863.87 |
| $61.71 | -11.5% | +$321.33 |
| $77.14 | +10.6% | +$206.21 |
| $92.56 | +32.7% | +$1,748.76 |
| $107.99 | +54.8% | +$3,291.30 |
| $123.41 | +76.9% | +$4,833.84 |
| $138.84 | +99.0% | +$6,376.38 |
When traders use straddle on BPH
Straddles on BPH are pure-volatility plays that profit from large moves in either direction; traders typically buy BPH straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
BPH thesis for this straddle
The market-implied 1-standard-deviation range for BPH extends from approximately $63.85 on the downside to $75.69 on the upside. A BPH 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. As a Financial Services name, BPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BPH-specific events.
BPH 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. BPH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BPH alongside the broader basket even when BPH-specific fundamentals are unchanged. Always rebuild the position from current BPH chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on BPH?
- A straddle on BPH is the straddle strategy applied to BPH (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 BPH etf trading near $69.77, the strikes shown on this page are snapped to the nearest listed BPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BPH 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 BPH straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 29.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$494.94 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BPH straddle?
- The breakeven for the BPH straddle priced on this page is roughly $64.93 and $75.08 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 BPH market-implied 1-standard-deviation expected move is approximately 8.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on BPH?
- Straddles on BPH are pure-volatility plays that profit from large moves in either direction; traders typically buy BPH 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 BPH implied volatility affect this straddle?
- Current BPH ATM IV is 29.60%; IV rank context is unavailable in the current snapshot.