How are CEPI 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 CEPI straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$294.44 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CEPI straddle?

The breakeven for the CEPI straddle priced on this page is roughly $28.95 and $35.05 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 CEPI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CEPI implied volatility affect this straddle?

CEPI ATM IV is at 30.40% with IV rank near 23.01%, 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.

CEPI Straddle Strategy

CEPI (REX Crypto Equity Premium Income ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

CEPI aims for exposure in US crypto-related companies, in sectors such as crypto mining, trading, custody, blockchain technology development, and the creation of digital payment solutions. Component securities are grouped into Crypto Assets Leaders and Digital Payments Leaders of this space, with a 80% and 20% allocation respectively. The fund holds 25 stock positions, while employing a covered call strategy, writing out-of-the-money options on individual securities to boost income from higher premiums, partially offsetting price declines and limiting upside potential. CEPI focuses on stock selection and option writing tailored to prevailing market conditions. The strategy aims to cushion against market declines and manage price volatility, blending capital appreciation and current income.

CEPI (REX Crypto Equity Premium Income ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $115.0M, a beta of 1.71 versus the broader market, a 52-week range of 26.981-43.7, average daily share volume of 44K, a public-listing history dating back to 2024. These structural characteristics shape how CEPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.71 indicates CEPI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CEPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on CEPI?

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.

CEPI snapshot

As of August 14, 2026, spot at $31.73, ATM IV 30.40%, IV rank 23.01%, expected move 8.72%. The straddle on CEPI 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 CEPI specifically: CEPI IV at 30.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a CEPI straddle, with a market-implied 1-standard-deviation move of approximately 8.72% (roughly $2.77 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 CEPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CEPI should anchor to the underlying notional of $31.73 per share and to the trader's directional view on CEPI etf.

CEPI straddle setup

The CEPI 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 CEPI at $31.73 on that close, the first option leg uses a $32.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CEPI 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 CEPI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$32.00	$0.73
Buy 1	Put	$32.00	$2.33

CEPI straddle risk and reward

Net Premium / Debit: -$305.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$294.44
Breakeven(s): $28.95, $35.05
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.

CEPI straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on CEPI. 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%	+$2,894.00
$7.02	-77.9%	+$2,192.54
$14.04	-55.8%	+$1,491.09
$21.05	-33.6%	+$789.63
$28.07	-11.5%	+$88.17
$35.08	+10.6%	+$3.29
$42.10	+32.7%	+$704.74
$49.11	+54.8%	+$1,406.20
$56.13	+76.9%	+$2,107.66
$63.14	+99.0%	+$2,809.12

When traders use straddle on CEPI

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

CEPI thesis for this straddle

The market-implied 1-standard-deviation range for CEPI extends from approximately $28.96 on the downside to $34.50 on the upside. A CEPI 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 CEPI IV rank near 23.01% 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 CEPI at 30.40%. As a Financial Services name, CEPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CEPI-specific events.

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

Frequently asked questions

What is a straddle on CEPI?: A straddle on CEPI is the straddle strategy applied to CEPI (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 CEPI etf at $31.73 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CEPI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CEPI 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 CEPI straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$294.44 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CEPI straddle?: The breakeven for the CEPI straddle priced on this page is roughly $28.95 and $35.05 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 CEPI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on CEPI?: Straddles on CEPI are pure-volatility plays that profit from large moves in either direction; traders typically buy CEPI 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 CEPI implied volatility affect this straddle?: CEPI ATM IV is at 30.40% with IV rank near 23.01%, 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.