AMR Straddle Strategy
AMR (Alpha Metallurgical Resources, Inc.), in the Energy sector, (Coal industry), listed on NYSE.
Alpha Metallurgical Resources, Inc., a mining company, produces, processes, and sells met and thermal coal in Virginia and West Virginia. As of December 31, 2021, it operated twenty active mines and eight coal preparation and load-out facilities. The company was formerly known as Contura Energy, Inc. and changed its name to Alpha Metallurgical Resources, Inc. in February 2021. Alpha Metallurgical Resources, Inc. was incorporated in 2016 and is headquartered in Bristol, Tennessee.
AMR (Alpha Metallurgical Resources, Inc.) trades in the Energy sector, specifically Coal, with a market capitalization of approximately $2.28B, a beta of 0.62 versus the broader market, a 52-week range of 97.41-253.82, average daily share volume of 282K, a public-listing history dating back to 2021, approximately 4K full-time employees. These structural characteristics shape how AMR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.62 indicates AMR 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 AMR?
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 AMR snapshot
As of May 15, 2026, spot at $180.73, ATM IV 58.60%, IV rank 34.22%, expected move 16.80%. The straddle on AMR 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 AMR specifically: AMR IV at 58.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 16.80% (roughly $30.36 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 AMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMR should anchor to the underlying notional of $180.73 per share and to the trader's directional view on AMR stock.
AMR straddle setup
The AMR 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 AMR near $180.73, the first option leg uses a $180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMR 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 AMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $180.00 | $14.25 |
| Buy 1 | Put | $180.00 | $11.95 |
AMR straddle risk and reward
- Net Premium / Debit
- -$2,620.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$2,602.68
- Breakeven(s)
- $153.80, $206.20
- 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.
AMR straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on AMR. 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% | +$15,379.00 |
| $39.97 | -77.9% | +$11,383.07 |
| $79.93 | -55.8% | +$7,387.14 |
| $119.89 | -33.7% | +$3,391.21 |
| $159.85 | -11.6% | -$604.72 |
| $199.81 | +10.6% | -$639.35 |
| $239.77 | +32.7% | +$3,356.58 |
| $279.73 | +54.8% | +$7,352.51 |
| $319.68 | +76.9% | +$11,348.44 |
| $359.64 | +99.0% | +$15,344.37 |
When traders use straddle on AMR
Straddles on AMR are pure-volatility plays that profit from large moves in either direction; traders typically buy AMR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
AMR thesis for this straddle
The market-implied 1-standard-deviation range for AMR extends from approximately $150.37 on the downside to $211.09 on the upside. A AMR 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 AMR IV rank near 34.22% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on AMR should anchor more to the directional view and the expected-move geometry. As a Energy name, AMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMR-specific events.
AMR 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. AMR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMR alongside the broader basket even when AMR-specific fundamentals are unchanged. Always rebuild the position from current AMR chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on AMR?
- A straddle on AMR is the straddle strategy applied to AMR (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 AMR stock trading near $180.73, the strikes shown on this page are snapped to the nearest listed AMR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMR 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 AMR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 58.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,602.68 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMR straddle?
- The breakeven for the AMR straddle priced on this page is roughly $153.80 and $206.20 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 AMR market-implied 1-standard-deviation expected move is approximately 16.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on AMR?
- Straddles on AMR are pure-volatility plays that profit from large moves in either direction; traders typically buy AMR 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 AMR implied volatility affect this straddle?
- AMR ATM IV is at 58.60% with IV rank near 34.22%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.