How are HIMZ 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 HIMZ straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 184.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,525.97 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HIMZ straddle?

The breakeven for the HIMZ straddle priced on this page is roughly $31.70 and $62.30 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 HIMZ market-implied 1-standard-deviation expected move is approximately 52.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HIMZ implied volatility affect this straddle?

HIMZ ATM IV is at 184.20% with IV rank near 23.44%, 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.

HIMZ Straddle Strategy

HIMZ (Daily Target 2X Long HIMS ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

This exchange-traded fund, officially named the Defiance Daily Target 2X Short HIMS ETF (referred to as "the Fund"), is designed to deliver daily investment performance. Before accounting for fees and expenses, it seeks to provide results that are two times the inverse (-200%) of the day-to-day percentage shifts in the share price of Hims & Hers Health, Inc. (listed on the NYSE as HIMS). Given its strategy of seeking daily inverse leveraged returns, this Fund stands apart from most conventional exchange-traded funds, and there is no assurance that it will consistently meet its stated objective. Investors should be aware that holding this Fund for more than a single trading day means it is unlikely to achieve a cumulative return equal to -200% of HIMS's performance over that extended period.

HIMZ (Daily Target 2X Long HIMS ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $20.2M, a beta of 4.81 versus the broader market, a 52-week range of 12.376-557.48, average daily share volume of 1.0M, a public-listing history dating back to 2025. These structural characteristics shape how HIMZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 4.81 indicates HIMZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. HIMZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on HIMZ?

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 HIMZ snapshot

As of June 29, 2026, spot at $46.72, ATM IV 184.20%, IV rank 23.44%, expected move 52.81%. The straddle on HIMZ 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 HIMZ specifically: HIMZ IV at 184.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a HIMZ straddle, with a market-implied 1-standard-deviation move of approximately 52.81% (roughly $24.67 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 HIMZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on HIMZ should anchor to the underlying notional of $46.72 per share and to the trader's directional view on HIMZ etf.

HIMZ straddle setup

The HIMZ 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 HIMZ near $46.72, the first option leg uses a $47.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HIMZ 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 HIMZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$47.00	$7.55
Buy 1	Put	$47.00	$7.75

HIMZ straddle risk and reward

Net Premium / Debit: -$1,530.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,525.97
Breakeven(s): $31.70, $62.30
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.

HIMZ straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on HIMZ. 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%	+$3,169.00
$10.34	-77.9%	+$2,136.11
$20.67	-55.8%	+$1,103.21
$31.00	-33.7%	+$70.32
$41.33	-11.5%	-$962.58
$51.65	+10.6%	-$1,064.53
$61.98	+32.7%	-$31.63
$72.31	+54.8%	+$1,001.26
$82.64	+76.9%	+$2,034.16
$92.97	+99.0%	+$3,067.05

When traders use straddle on HIMZ

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

HIMZ thesis for this straddle

The market-implied 1-standard-deviation range for HIMZ extends from approximately $22.05 on the downside to $71.39 on the upside. A HIMZ 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 HIMZ IV rank near 23.44% 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 HIMZ at 184.20%. As a Financial Services name, HIMZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HIMZ-specific events.

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

Frequently asked questions

What is a straddle on HIMZ?: A straddle on HIMZ is the straddle strategy applied to HIMZ (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 HIMZ etf trading near $46.72, the strikes shown on this page are snapped to the nearest listed HIMZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HIMZ 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 HIMZ straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 184.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,525.97 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HIMZ straddle?: The breakeven for the HIMZ straddle priced on this page is roughly $31.70 and $62.30 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 HIMZ market-implied 1-standard-deviation expected move is approximately 52.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on HIMZ?: Straddles on HIMZ are pure-volatility plays that profit from large moves in either direction; traders typically buy HIMZ 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 HIMZ implied volatility affect this straddle?: HIMZ ATM IV is at 184.20% with IV rank near 23.44%, 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.