ADIG Straddle Strategy

ADIG (ADI Global Distribution Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.

ADI Global Distribution, Inc. engages in the distribution of third-party low-voltage products. Its products include security and audio-visual solutions. The company was founded by Maurice Coleman in 1929 and is headquartered in Huntington, NY.

ADIG (ADI Global Distribution Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $1.35B, a trailing P/E of 296.86, a beta of 0.00 versus the broader market, a 52-week range of 19.53-30.99, average daily share volume of 1.0M, a public-listing history dating back to 2026, approximately 4K full-time employees. These structural characteristics shape how ADIG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates ADIG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 296.86 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.

What is a straddle on ADIG?

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.

ADIG snapshot

As of September 29, 2026, spot at $18.80, ATM IV 79.50%, expected move 22.79%. The straddle on ADIG below is built from the 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 ADIG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ADIG is inferred from ATM IV at 79.50% alone, with a market-implied 1-standard-deviation move of approximately 22.79% (roughly $4.28 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 ADIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADIG should anchor to the underlying notional of $18.80 per share and to the trader's directional view on ADIG stock.

ADIG straddle setup

The ADIG 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 ADIG at $18.80 on that close, the first option leg uses a $18.80 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADIG 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 ADIG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$18.80	N/A
Buy 1	Put	$18.80	N/A

ADIG straddle risk and reward

Net Premium / Debit: N/A
Max Profit (per contract): Unbounded
Max Loss (per contract): Unbounded
Breakeven(s): None on modeled curve
Risk / Reward Ratio: N/A

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.

ADIG straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on ADIG. 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.

When traders use straddle on ADIG

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

ADIG thesis for this straddle

The market-implied 1-standard-deviation range for ADIG extends from approximately $14.52 on the downside to $23.08 on the upside. A ADIG 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 Industrials name, ADIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADIG-specific events.

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

Frequently asked questions

What is a straddle on ADIG?: A straddle on ADIG is the straddle strategy applied to ADIG (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 ADIG stock at $18.80 on the most recent close, the strikes shown on this page are snapped to the nearest listed ADIG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ADIG 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 ADIG straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 79.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ADIG straddle?: The breakeven for the ADIG straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 ADIG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on ADIG?: Straddles on ADIG are pure-volatility plays that profit from large moves in either direction; traders typically buy ADIG 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 ADIG implied volatility affect this straddle?: Current ADIG ATM IV is 79.50%; IV rank context is unavailable in the current snapshot.