AMN Straddle Strategy
AMN (AMN Healthcare Services, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
AMN Healthcare Services, Inc. (AMN) specializes in delivering comprehensive workforce solutions and staffing services to hospitals and healthcare facilities throughout the United States. Its operations are structured across three primary segments: The Nurse and Allied Solutions segment focuses on placing registered nurses in travel assignments, rapid response roles during emergencies or labor disruptions, and local positions. It also supplies allied health professionals for various roles and offers revenue cycle management solutions. Through its Physician and Leadership Solutions segment, AMN facilitates the placement of locum tenens physicians for temporary assignments, provides interim leadership for healthcare organizations, conducts executive searches, and handles permanent physician recruitment. Lastly, the Technology and Workforce Solutions segment encompasses services like language interpretation, vendor management systems (VMS), workforce optimization strategies, telehealth platforms, credentialing assistance, and various outsourced solutions. Beyond nurses and physicians, AMN's network of professionals includes a broad spectrum of allied health specialists such as physical, respiratory, and occupational therapists; medical and radiology technologists; lab technicians; speech pathologists; rehabilitation assistants; and pharmacists.
AMN (AMN Healthcare Services, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.27B, a beta of 0.44 versus the broader market, a 52-week range of 14.87-33.48, average daily share volume of 1.0M, a public-listing history dating back to 2001, approximately 3K full-time employees. These structural characteristics shape how AMN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.44 indicates AMN 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 AMN?
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 AMN snapshot
As of June 30, 2026, spot at $32.36, ATM IV 57.90%, IV rank 7.44%, expected move 16.60%. The straddle on AMN 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 17-day expiry.
Why this straddle structure on AMN specifically: AMN IV at 57.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a AMN straddle, with a market-implied 1-standard-deviation move of approximately 16.60% (roughly $5.37 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 AMN expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMN should anchor to the underlying notional of $32.36 per share and to the trader's directional view on AMN stock.
AMN straddle setup
The AMN 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 AMN near $32.36, the first option leg uses a $32.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMN 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 AMN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $32.36 | N/A |
| Buy 1 | Put | $32.36 | N/A |
AMN 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.
AMN straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on AMN. 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 AMN
Straddles on AMN are pure-volatility plays that profit from large moves in either direction; traders typically buy AMN straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
AMN thesis for this straddle
The market-implied 1-standard-deviation range for AMN extends from approximately $26.99 on the downside to $37.73 on the upside. A AMN 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 AMN IV rank near 7.44% 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 AMN at 57.90%. As a Healthcare name, AMN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMN-specific events.
AMN 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. AMN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMN alongside the broader basket even when AMN-specific fundamentals are unchanged. Always rebuild the position from current AMN chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on AMN?
- A straddle on AMN is the straddle strategy applied to AMN (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 AMN stock trading near $32.36, the strikes shown on this page are snapped to the nearest listed AMN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMN 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 AMN straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 57.90%), 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 AMN straddle?
- The breakeven for the AMN straddle priced on this page is no defined breakeven on the modeled curve 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 AMN market-implied 1-standard-deviation expected move is approximately 16.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on AMN?
- Straddles on AMN are pure-volatility plays that profit from large moves in either direction; traders typically buy AMN 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 AMN implied volatility affect this straddle?
- AMN ATM IV is at 57.90% with IV rank near 7.44%, 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.