How are FGM 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 FGM straddle priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is unbounded per contract and the computed maximum loss is -$243.86 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FGM straddle?

The breakeven for the FGM straddle priced on this page is roughly $56.27 and $61.73 at expiration, derived from the November 13, 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.

How does current FGM implied volatility affect this straddle?

Current FGM ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.

FGM Straddle Strategy

FGM (First Trust Germany AlphaDEX Fund), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.

The First Trust Germany AlphaDEX Fund is an exchange-traded fund (ETF) that seeks to mirror the total return, encompassing both capital appreciation and income, of the Nasdaq AlphaDEX Germany Index. Its primary goal is to deliver investment results that broadly align with this specific equity benchmark, before accounting for the fund's own operational costs and fees.

FGM (First Trust Germany AlphaDEX Fund) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $76.7M, a beta of 1.16 versus the broader market, a 52-week range of 54.83-71.12, average daily share volume of 6K, a public-listing history dating back to 2012. These structural characteristics shape how FGM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

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

What is a straddle on FGM?

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.

FGM snapshot

As of November 13, 2026, spot at $58.99. The straddle on FGM below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this straddle structure on FGM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FGM is inferred from ATM IV alone. The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FGM expiries trade a higher absolute premium for lower per-day decay. Position sizing on FGM should anchor to the underlying notional of $58.99 per share and to the trader's directional view on FGM etf.

FGM straddle setup

The FGM straddle below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FGM at $58.99 on that close, the first option leg uses a $59.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FGM chain at a 7-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 FGM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$59.00	$1.38
Buy 1	Put	$59.00	$1.35

FGM straddle risk and reward

Net Premium / Debit: -$273.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$243.86
Breakeven(s): $56.27, $61.73
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.

FGM straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on FGM. 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%	+$5,626.00
$13.05	-77.9%	+$4,321.81
$26.09	-55.8%	+$3,017.62
$39.14	-33.7%	+$1,713.43
$52.18	-11.5%	+$409.24
$65.22	+10.6%	+$348.95
$78.26	+32.7%	+$1,653.15
$91.30	+54.8%	+$2,957.34
$104.35	+76.9%	+$4,261.53
$117.39	+99.0%	+$5,565.72

When traders use straddle on FGM

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

FGM thesis for this straddle

A FGM 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, FGM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FGM-specific events.

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

Frequently asked questions

What is a straddle on FGM?: A straddle on FGM is the straddle strategy applied to FGM (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 FGM etf at $58.99 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed FGM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FGM 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 FGM straddle priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is unbounded per contract and the computed maximum loss is -$243.86 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FGM straddle?: The breakeven for the FGM straddle priced on this page is roughly $56.27 and $61.73 at expiration, derived from the November 13, 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.
When should you consider a straddle on FGM?: Straddles on FGM are pure-volatility plays that profit from large moves in either direction; traders typically buy FGM 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 FGM implied volatility affect this straddle?: Current FGM ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.