How are TEMT 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 TEMT straddle priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 148.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$991.91 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TEMT straddle?

The breakeven for the TEMT straddle priced on this page is roughly $29.95 and $50.05 at expiration, derived from the September 29, 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 TEMT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TEMT implied volatility affect this straddle?

TEMT ATM IV is at 148.20% with IV rank near 39.87%, 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.

TEMT Straddle Strategy

TEMT (Investment Managers Series Trust II - Tradr 2X Long TEM Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

TEMT is a leveraged ETF seeking to provide twice the daily performance of Tempus Al Inc., a healthcare AI firm. The fund's objective is strictly for daily returns and is not designed for long-term investment. To meet its leverage goal, the fund primarily engages in swap agreements, options, and direct holdings of Tempus Al (TEM) stock, actively rebalancing each trading day. Its performance is highly tied to TEM's daily price movements and may experience increased volatility compared to traditional funds. Due to its use of derivatives and leverage, the fund should be monitored regularly, as it is intended for short-term trading rather than long-term investing. The fund's concentration reflects TEM's focus on healthcare technology, and its results can vary considerably depending on underlying stock and sector movements.

TEMT (Investment Managers Series Trust II - Tradr 2X Long TEM Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $58.6M, a beta of 5.22 versus the broader market, a 52-week range of 11.52-152.22, average daily share volume of 281K, a public-listing history dating back to 2025. These structural characteristics shape how TEMT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 5.22 indicates TEMT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TEMT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on TEMT?

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.

TEMT snapshot

As of September 29, 2026, spot at $39.53, ATM IV 148.20%, IV rank 39.87%, expected move 42.49%. The straddle on TEMT below is built from the September 29, 2026 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 TEMT specifically: TEMT IV at 148.20% 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 42.49% (roughly $16.80 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 TEMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TEMT should anchor to the underlying notional of $39.53 per share and to the trader's directional view on TEMT etf.

TEMT straddle setup

The TEMT straddle below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TEMT at $39.53 on that close, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TEMT 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 TEMT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$40.00	$4.95
Buy 1	Put	$40.00	$5.10

TEMT straddle risk and reward

Net Premium / Debit: -$1,005.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$991.91
Breakeven(s): $29.95, $50.05
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.

TEMT straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on TEMT. 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%	+$2,994.00
$8.75	-77.9%	+$2,120.08
$17.49	-55.8%	+$1,246.16
$26.23	-33.7%	+$372.24
$34.97	-11.5%	-$501.68
$43.71	+10.6%	-$634.40
$52.45	+32.7%	+$239.52
$61.18	+54.8%	+$1,113.44
$69.92	+76.9%	+$1,987.36
$78.66	+99.0%	+$2,861.28

When traders use straddle on TEMT

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

TEMT thesis for this straddle

The market-implied 1-standard-deviation range for TEMT extends from approximately $22.73 on the downside to $56.33 on the upside. A TEMT 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 TEMT IV rank near 39.87% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on TEMT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TEMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TEMT-specific events.

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

Frequently asked questions

What is a straddle on TEMT?: A straddle on TEMT is the straddle strategy applied to TEMT (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 TEMT etf at $39.53 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed TEMT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TEMT 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 TEMT straddle priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 148.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$991.91 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TEMT straddle?: The breakeven for the TEMT straddle priced on this page is roughly $29.95 and $50.05 at expiration, derived from the September 29, 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 TEMT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on TEMT?: Straddles on TEMT are pure-volatility plays that profit from large moves in either direction; traders typically buy TEMT 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 TEMT implied volatility affect this straddle?: TEMT ATM IV is at 148.20% with IV rank near 39.87%, 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.