How are AAON 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 AAON straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 68.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,515.82 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AAON straddle?

The breakeven for the AAON straddle priced on this page is roughly $109.45 and $140.55 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 AAON market-implied 1-standard-deviation expected move is approximately 19.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AAON implied volatility affect this straddle?

AAON ATM IV is at 68.70% with IV rank near 32.02%, 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.

AAON Straddle Strategy

AAON (AAON, Inc.), in the Industrials sector, (Construction industry), listed on NASDAQ.

AAON, Inc., along with its affiliated companies, focuses on the engineering, manufacturing, promotion, and sale of heating and air conditioning systems throughout the United States and Canada. The enterprise's operations are divided into three distinct divisions: AAON Oklahoma, AAON Coil Products, and BasX. Its comprehensive product portfolio features a wide array of HVAC solutions, including rooftop units, specialized data center cooling, cleanroom climate control, chillers, pre-packaged outdoor mechanical rooms, air handling units, fresh air supply units, energy recovery ventilation, condensing units, geothermal/water-source heat pumps, coils, and integrated control systems. AAON markets and sells these offerings to a diverse set of commercial sectors, such as retail, manufacturing, educational institutions, hospitality, supermarkets, data centers, and the medical and pharmaceutical industries. Product distribution is managed through a dual approach, utilizing a network of independent manufacturing representatives in addition to an in-house sales team. Established in 1987, AAON, Inc. is headquartered in Tulsa, Oklahoma.

AAON (AAON, Inc.) trades in the Industrials sector, specifically Construction, with a market capitalization of approximately $10.38B, a trailing P/E of 87.75, a beta of 1.40 versus the broader market, a 52-week range of 62-150.46, average daily share volume of 1.1M, a public-listing history dating back to 1992, approximately 5K full-time employees. These structural characteristics shape how AAON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.40 indicates AAON has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 87.75 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. AAON pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on AAON?

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 AAON snapshot

As of June 29, 2026, spot at $126.02, ATM IV 68.70%, IV rank 32.02%, expected move 19.70%. The straddle on AAON 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 AAON specifically: AAON IV at 68.70% 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 19.70% (roughly $24.82 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 AAON expiries trade a higher absolute premium for lower per-day decay. Position sizing on AAON should anchor to the underlying notional of $126.02 per share and to the trader's directional view on AAON stock.

AAON straddle setup

The AAON 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 AAON near $126.02, 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 AAON 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 AAON shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$125.00	$7.95
Buy 1	Put	$125.00	$7.60

AAON straddle risk and reward

Net Premium / Debit: -$1,555.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,515.82
Breakeven(s): $109.45, $140.55
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.

AAON straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on AAON. 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%	+$10,944.00
$27.87	-77.9%	+$8,157.74
$55.74	-55.8%	+$5,371.48
$83.60	-33.7%	+$2,585.22
$111.46	-11.6%	-$201.05
$139.32	+10.6%	-$122.69
$167.19	+32.7%	+$2,663.57
$195.05	+54.8%	+$5,449.83
$222.91	+76.9%	+$8,236.09
$250.77	+99.0%	+$11,022.35

When traders use straddle on AAON

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

AAON thesis for this straddle

The market-implied 1-standard-deviation range for AAON extends from approximately $101.20 on the downside to $150.84 on the upside. A AAON 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 AAON IV rank near 32.02% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on AAON should anchor more to the directional view and the expected-move geometry. As a Industrials name, AAON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AAON-specific events.

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

Frequently asked questions

What is a straddle on AAON?: A straddle on AAON is the straddle strategy applied to AAON (stock). 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 AAON stock trading near $126.02, the strikes shown on this page are snapped to the nearest listed AAON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AAON 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 AAON straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 68.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,515.82 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AAON straddle?: The breakeven for the AAON straddle priced on this page is roughly $109.45 and $140.55 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 AAON market-implied 1-standard-deviation expected move is approximately 19.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on AAON?: Straddles on AAON are pure-volatility plays that profit from large moves in either direction; traders typically buy AAON 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 AAON implied volatility affect this straddle?: AAON ATM IV is at 68.70% with IV rank near 32.02%, 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.