ALM Straddle Strategy
ALM (Almonty Industries Inc.), in the Basic Materials sector, (Industrial Materials industry), listed on NASDAQ.
Almonty Industries, Inc. engages in the mining, processing, and shipment of tungsten concentrates. Its projects include Almonty Korea Tungsten, Panasquiera mine, Gentung, Almonty Korea Moly, Los Santos mine, and Valtreixal. The company was founded on September 28, 2009 and is headquartered in Dillon, MT.
ALM (Almonty Industries Inc.) trades in the Basic Materials sector, specifically Industrial Materials, with a market capitalization of approximately $4.28B, a beta of 2.05 versus the broader market, a 52-week range of 3.97-24.41, average daily share volume of 5.7M, a public-listing history dating back to 2025, approximately 341 full-time employees. These structural characteristics shape how ALM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.05 indicates ALM 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 ALM?
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.
ALM snapshot
As of August 14, 2026, spot at $15.12, ATM IV 90.40%, expected move 25.92%. The straddle on ALM 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 35-day expiry.
Why this straddle structure on ALM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ALM is inferred from ATM IV at 90.40% alone, with a market-implied 1-standard-deviation move of approximately 25.92% (roughly $3.92 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALM expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALM should anchor to the underlying notional of $15.12 per share and to the trader's directional view on ALM stock.
ALM straddle setup
The ALM 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 ALM at $15.12 on that close, the first option leg uses a $15.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALM chain at a 35-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 ALM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.12 | N/A |
| Buy 1 | Put | $15.12 | N/A |
ALM 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.
ALM straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on ALM. 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 ALM
Straddles on ALM are pure-volatility plays that profit from large moves in either direction; traders typically buy ALM straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
ALM thesis for this straddle
The market-implied 1-standard-deviation range for ALM extends from approximately $11.20 on the downside to $19.04 on the upside. A ALM 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 Basic Materials name, ALM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALM-specific events.
ALM 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. ALM positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALM alongside the broader basket even when ALM-specific fundamentals are unchanged. Always rebuild the position from current ALM chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on ALM?
- A straddle on ALM is the straddle strategy applied to ALM (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 ALM stock at $15.12 on the most recent close, the strikes shown on this page are snapped to the nearest listed ALM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ALM 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 ALM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 90.40%), 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 ALM straddle?
- The breakeven for the ALM 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 ALM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on ALM?
- Straddles on ALM are pure-volatility plays that profit from large moves in either direction; traders typically buy ALM 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 ALM implied volatility affect this straddle?
- Current ALM ATM IV is 90.40%; IV rank context is unavailable in the current snapshot.