How are WATS 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 WATS straddle priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 69.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$522.48 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WATS straddle?

The breakeven for the WATS straddle priced on this page is roughly $14.75 and $25.25 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 WATS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WATS implied volatility affect this straddle?

Current WATS ATM IV is 69.70%; IV rank context is unavailable in the current snapshot.

WATS Straddle Strategy

WATS (Corgi ETF Trust I - Corgi Battery Energy Storage Systems ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

WATS seeks capital appreciation by actively managing a portfolio of companies materially involved in battery energy storage systems, supporting electric grids, renewable integration, peak demand management, backup power, and electrification. The fund considers companies deriving significant revenue from this theme, spanning battery cells and packs, management systems, power electronics, thermal management, energy software, grid services, project development, and recycling. The fund invests in US and non-US companies of any market cap, using a bottom-up process combining fundamental analysis with thematic and quantitative screening. Other factors include supply chain positioning, growth potential, and valuation. Up to 15% may be allocated to illiquid investments, including passive minority interests in special purpose vehicles (SPVs). The fund may hold cash, cash equivalents, or short-term US Treasuries for liquidity and portfolio management.

WATS (Corgi ETF Trust I - Corgi Battery Energy Storage Systems ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $487,186, a beta of 5.53 versus the broader market, a 52-week range of 18.42-32.27, average daily share volume of 1K, a public-listing history dating back to 2026. These structural characteristics shape how WATS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 5.53 indicates WATS 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 WATS?

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.

WATS snapshot

As of September 29, 2026, spot at $19.87, ATM IV 69.70%, expected move 19.98%. The straddle on WATS 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 80-day expiry.

Why this straddle structure on WATS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for WATS is inferred from ATM IV at 69.70% alone, with a market-implied 1-standard-deviation move of approximately 19.98% (roughly $3.97 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WATS expiries trade a higher absolute premium for lower per-day decay. Position sizing on WATS should anchor to the underlying notional of $19.87 per share and to the trader's directional view on WATS etf.

WATS straddle setup

The WATS 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 WATS at $19.87 on that close, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WATS chain at a 80-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 WATS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$20.00	$2.65
Buy 1	Put	$20.00	$2.60

WATS straddle risk and reward

Net Premium / Debit: -$525.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$522.48
Breakeven(s): $14.75, $25.25
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.

WATS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on WATS. 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	-99.9%	+$1,474.00
$4.40	-77.8%	+$1,034.77
$8.79	-55.7%	+$595.55
$13.19	-33.6%	+$156.32
$17.58	-11.5%	-$282.90
$21.97	+10.6%	-$327.87
$26.36	+32.7%	+$111.36
$30.76	+54.8%	+$550.58
$35.15	+76.9%	+$989.81
$39.54	+99.0%	+$1,429.04

When traders use straddle on WATS

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

WATS thesis for this straddle

The market-implied 1-standard-deviation range for WATS extends from approximately $15.90 on the downside to $23.84 on the upside. A WATS 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, WATS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WATS-specific events.

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

Frequently asked questions

What is a straddle on WATS?: A straddle on WATS is the straddle strategy applied to WATS (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 WATS etf at $19.87 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed WATS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are WATS 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 WATS straddle priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 69.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$522.48 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WATS straddle?: The breakeven for the WATS straddle priced on this page is roughly $14.75 and $25.25 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 WATS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on WATS?: Straddles on WATS are pure-volatility plays that profit from large moves in either direction; traders typically buy WATS 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 WATS implied volatility affect this straddle?: Current WATS ATM IV is 69.70%; IV rank context is unavailable in the current snapshot.