How are IQM 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 IQM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 34.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$670.45 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IQM straddle?

The breakeven for the IQM straddle priced on this page is roughly $117.68 and $132.33 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 IQM market-implied 1-standard-deviation expected move is approximately 9.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IQM implied volatility affect this straddle?

IQM ATM IV is at 34.10% with IV rank near 63.85%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

IQM Straddle Strategy

IQM (Franklin Intelligent Machines ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

Franklin Templeton ETF Trust - Franklin Intelligent Machines ETF is an exchange traded fund launched by Franklin Resources, Inc. The fund is managed by Franklin Advisers, Inc. It invests in public equity markets of global region. The fund invests in stocks of companies operating across information technology, software and services, software, systems software, automation products and services, software research, artificial intelligence software sectors. It invests in growth and value stocks of companies across diversified market capitalization. It invests in stocks of companies that are deemed socially conscious in their business dealings and directly promote environmental responsibility.

IQM (Franklin Intelligent Machines ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $67.4M, a beta of 1.66 versus the broader market, a 52-week range of 72.85-126.21, average daily share volume of 8K, a public-listing history dating back to 2020. These structural characteristics shape how IQM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.66 indicates IQM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a straddle on IQM?

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 IQM snapshot

As of June 30, 2026, spot at $123.75, ATM IV 34.10%, IV rank 63.85%, expected move 9.78%. The straddle on IQM 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 17-day expiry.

Why this straddle structure on IQM specifically: IQM IV at 34.10% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 9.78% (roughly $12.10 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IQM expiries trade a higher absolute premium for lower per-day decay. Position sizing on IQM should anchor to the underlying notional of $123.75 per share and to the trader's directional view on IQM etf.

IQM straddle setup

The IQM 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 IQM near $123.75, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IQM chain at a 17-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 IQM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$125.00	$2.88
Buy 1	Put	$125.00	$4.45

IQM straddle risk and reward

Net Premium / Debit: -$732.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$670.45
Breakeven(s): $117.68, $132.33
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.

IQM straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on IQM. 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%	+$11,766.50
$27.37	-77.9%	+$9,030.43
$54.73	-55.8%	+$6,294.36
$82.09	-33.7%	+$3,558.29
$109.45	-11.6%	+$822.22
$136.81	+10.6%	+$448.85
$164.17	+32.7%	+$3,184.92
$191.53	+54.8%	+$5,920.99
$218.90	+76.9%	+$8,657.06
$246.26	+99.0%	+$11,393.13

When traders use straddle on IQM

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

IQM thesis for this straddle

The market-implied 1-standard-deviation range for IQM extends from approximately $111.65 on the downside to $135.85 on the upside. A IQM 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 IQM IV rank near 63.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on IQM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, IQM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IQM-specific events.

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

Frequently asked questions

What is a straddle on IQM?: A straddle on IQM is the straddle strategy applied to IQM (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 IQM etf trading near $123.75, the strikes shown on this page are snapped to the nearest listed IQM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IQM 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 IQM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 34.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$670.45 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IQM straddle?: The breakeven for the IQM straddle priced on this page is roughly $117.68 and $132.33 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 IQM market-implied 1-standard-deviation expected move is approximately 9.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on IQM?: Straddles on IQM are pure-volatility plays that profit from large moves in either direction; traders typically buy IQM 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 IQM implied volatility affect this straddle?: IQM ATM IV is at 34.10% with IV rank near 63.85%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.