How are KOMP 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 KOMP straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$536.71 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KOMP straddle?

The breakeven for the KOMP straddle priced on this page is roughly $64.40 and $75.60 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 KOMP market-implied 1-standard-deviation expected move is approximately 7.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KOMP implied volatility affect this straddle?

KOMP ATM IV is at 27.80% with IV rank near 6.19%, 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.

KOMP Straddle Strategy

KOMP (State Street SPDR S&P Kensho New Economies Composite ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The State Street SPDR S&P Kensho New Economies Composite ETF aims to mirror the overall return performance of the S&P Kensho New Economies Composite Index, prior to accounting for its charges and operating costs. The index itself employs artificial intelligence and a systematic, data-driven methodology to pinpoint companies spearheading a new economic era. These innovative businesses are transforming established sectors by harnessing breakthroughs in computing power, artificial intelligence, robotics, and automation. Consequently, the fund seeks to provide an effective means of pursuing long-term growth by investing in the companies and industries at the forefront of this evolving economic landscape.

KOMP (State Street SPDR S&P Kensho New Economies Composite ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $2.97B, a beta of 1.64 versus the broader market, a 52-week range of 53.88-75.61, average daily share volume of 91K, a public-listing history dating back to 2018. These structural characteristics shape how KOMP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.64 indicates KOMP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. KOMP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on KOMP?

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 KOMP snapshot

As of June 30, 2026, spot at $71.56, ATM IV 27.80%, IV rank 6.19%, expected move 7.97%. The straddle on KOMP 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 52-day expiry.

Why this straddle structure on KOMP specifically: KOMP IV at 27.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a KOMP straddle, with a market-implied 1-standard-deviation move of approximately 7.97% (roughly $5.70 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KOMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on KOMP should anchor to the underlying notional of $71.56 per share and to the trader's directional view on KOMP etf.

KOMP straddle setup

The KOMP 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 KOMP near $71.56, 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 KOMP chain at a 52-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 KOMP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$70.00	$3.00
Buy 1	Put	$70.00	$2.60

KOMP straddle risk and reward

Net Premium / Debit: -$560.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$536.71
Breakeven(s): $64.40, $75.60
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.

KOMP straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on KOMP. 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%	+$6,439.00
$15.83	-77.9%	+$4,856.88
$31.65	-55.8%	+$3,274.76
$47.47	-33.7%	+$1,692.64
$63.29	-11.5%	+$110.52
$79.12	+10.6%	+$351.60
$94.94	+32.7%	+$1,933.72
$110.76	+54.8%	+$3,515.84
$126.58	+76.9%	+$5,097.96
$142.40	+99.0%	+$6,680.09

When traders use straddle on KOMP

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

KOMP thesis for this straddle

The market-implied 1-standard-deviation range for KOMP extends from approximately $65.86 on the downside to $77.26 on the upside. A KOMP 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 KOMP IV rank near 6.19% 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 KOMP at 27.80%. As a Financial Services name, KOMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KOMP-specific events.

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

Frequently asked questions

What is a straddle on KOMP?: A straddle on KOMP is the straddle strategy applied to KOMP (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 KOMP etf trading near $71.56, the strikes shown on this page are snapped to the nearest listed KOMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KOMP 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 KOMP straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$536.71 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KOMP straddle?: The breakeven for the KOMP straddle priced on this page is roughly $64.40 and $75.60 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 KOMP market-implied 1-standard-deviation expected move is approximately 7.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on KOMP?: Straddles on KOMP are pure-volatility plays that profit from large moves in either direction; traders typically buy KOMP 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 KOMP implied volatility affect this straddle?: KOMP ATM IV is at 27.80% with IV rank near 6.19%, 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.