ALMS Straddle Strategy
ALMS (Alumis Inc. Common Stock), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Alumis Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of medicines for autoimmune disorders. It develops ESK-001, an allosteric tyrosine kinase 2 (TYK2) inhibitor for the treatment of plaque psoriasis, systemic lupus erythematosus, and non-infectious uveitis; and A-005, a central nervous system-penetrant allosteric TYK2 inhibitor for neuroinflammatory and neurodegenerative diseases. The company was formerly known as Esker Therapeutics, Inc. and changed its name to Alumis Inc. in January 2022. The company was incorporated in 2021 and is headquartered in South San Francisco, California.
ALMS (Alumis Inc. Common Stock) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.06B, a beta of -0.29 versus the broader market, a 52-week range of 2.76-30.6, average daily share volume of 1.4M, a public-listing history dating back to 2021, approximately 168 full-time employees. These structural characteristics shape how ALMS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.29 indicates ALMS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a straddle on ALMS?
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 ALMS snapshot
As of May 15, 2026, spot at $23.05, ATM IV 81.70%, IV rank 9.07%, expected move 23.42%. The straddle on ALMS 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 ALMS specifically: ALMS IV at 81.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a ALMS straddle, with a market-implied 1-standard-deviation move of approximately 23.42% (roughly $5.40 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 ALMS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALMS should anchor to the underlying notional of $23.05 per share and to the trader's directional view on ALMS stock.
ALMS straddle setup
The ALMS 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 ALMS near $23.05, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALMS 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 ALMS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $23.00 | $2.75 |
| Buy 1 | Put | $23.00 | $2.55 |
ALMS straddle risk and reward
- Net Premium / Debit
- -$530.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$523.92
- Breakeven(s)
- $17.70, $28.30
- 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.
ALMS straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on ALMS. 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 | -100.0% | +$1,769.00 |
| $5.11 | -77.9% | +$1,259.46 |
| $10.20 | -55.7% | +$749.92 |
| $15.30 | -33.6% | +$240.39 |
| $20.39 | -11.5% | -$269.15 |
| $25.49 | +10.6% | -$281.31 |
| $30.58 | +32.7% | +$228.23 |
| $35.68 | +54.8% | +$737.76 |
| $40.77 | +76.9% | +$1,247.30 |
| $45.87 | +99.0% | +$1,756.84 |
When traders use straddle on ALMS
Straddles on ALMS are pure-volatility plays that profit from large moves in either direction; traders typically buy ALMS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
ALMS thesis for this straddle
The market-implied 1-standard-deviation range for ALMS extends from approximately $17.65 on the downside to $28.45 on the upside. A ALMS 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 ALMS IV rank near 9.07% 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 ALMS at 81.70%. As a Healthcare name, ALMS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALMS-specific events.
ALMS 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. ALMS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALMS alongside the broader basket even when ALMS-specific fundamentals are unchanged. Always rebuild the position from current ALMS chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on ALMS?
- A straddle on ALMS is the straddle strategy applied to ALMS (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 ALMS stock trading near $23.05, the strikes shown on this page are snapped to the nearest listed ALMS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALMS 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 ALMS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 81.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$523.92 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALMS straddle?
- The breakeven for the ALMS straddle priced on this page is roughly $17.70 and $28.30 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 ALMS market-implied 1-standard-deviation expected move is approximately 23.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on ALMS?
- Straddles on ALMS are pure-volatility plays that profit from large moves in either direction; traders typically buy ALMS 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 ALMS implied volatility affect this straddle?
- ALMS ATM IV is at 81.70% with IV rank near 9.07%, 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.