ADMA Straddle Strategy
ADMA (ADMA Biologics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ADMA Biologics, Inc., a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. It offers BIVIGAM, an intravenous immune globulin (IVIG) product indicated for the treatment of primary humoral immunodeficiency (PI); ASCENIV, an IVIG product for the treatment of PI; and Nabi-HB for the treatment of acute exposure to blood containing Hepatitis B surface antigen and other listed exposures to Hepatitis B. The company also develops a pipeline of plasma-derived therapeutics, including products related to the methods of treatment and prevention of S. pneumonia infection for an immunoglobulin. In addition, it operates source plasma collection facilities. The company sells its products through independent distributors, sales agents, specialty pharmacies, and other alternate site providers. ADMA Biologics, Inc. was incorporated in 2004 and is headquartered in Ramsey, New Jersey.
ADMA (ADMA Biologics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.97B, a trailing P/E of 12.14, a beta of 0.82 versus the broader market, a 52-week range of 7.21-22.37, average daily share volume of 7.3M, a public-listing history dating back to 2013, approximately 685 full-time employees. These structural characteristics shape how ADMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places ADMA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on ADMA?
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 ADMA snapshot
As of May 15, 2026, spot at $8.27, ATM IV 60.20%, IV rank 13.13%, expected move 17.26%. The straddle on ADMA 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 34-day expiry.
Why this straddle structure on ADMA specifically: ADMA IV at 60.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ADMA straddle, with a market-implied 1-standard-deviation move of approximately 17.26% (roughly $1.43 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADMA should anchor to the underlying notional of $8.27 per share and to the trader's directional view on ADMA stock.
ADMA straddle setup
The ADMA 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 ADMA near $8.27, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADMA chain at a 34-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 ADMA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.00 | $0.80 |
| Buy 1 | Put | $8.00 | $0.45 |
ADMA straddle risk and reward
- Net Premium / Debit
- -$125.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$123.43
- Breakeven(s)
- $6.75, $9.25
- 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.
ADMA straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on ADMA. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | +$674.00 |
| $1.84 | -77.8% | +$491.26 |
| $3.66 | -55.7% | +$308.51 |
| $5.49 | -33.6% | +$125.77 |
| $7.32 | -11.5% | -$56.97 |
| $9.15 | +10.6% | -$10.28 |
| $10.97 | +32.7% | +$172.46 |
| $12.80 | +54.8% | +$355.21 |
| $14.63 | +76.9% | +$537.95 |
| $16.46 | +99.0% | +$720.69 |
When traders use straddle on ADMA
Straddles on ADMA are pure-volatility plays that profit from large moves in either direction; traders typically buy ADMA straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
ADMA thesis for this straddle
The market-implied 1-standard-deviation range for ADMA extends from approximately $6.84 on the downside to $9.70 on the upside. A ADMA 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 ADMA IV rank near 13.13% 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 ADMA at 60.20%. As a Healthcare name, ADMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADMA-specific events.
ADMA 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. ADMA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADMA alongside the broader basket even when ADMA-specific fundamentals are unchanged. Always rebuild the position from current ADMA chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on ADMA?
- A straddle on ADMA is the straddle strategy applied to ADMA (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 ADMA stock trading near $8.27, the strikes shown on this page are snapped to the nearest listed ADMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ADMA 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 ADMA straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 60.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$123.43 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ADMA straddle?
- The breakeven for the ADMA straddle priced on this page is roughly $6.75 and $9.25 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 ADMA market-implied 1-standard-deviation expected move is approximately 17.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on ADMA?
- Straddles on ADMA are pure-volatility plays that profit from large moves in either direction; traders typically buy ADMA 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 ADMA implied volatility affect this straddle?
- ADMA ATM IV is at 60.20% with IV rank near 13.13%, 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.