How are AMSC 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 AMSC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 85.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$602.96 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AMSC straddle?

The breakeven for the AMSC straddle priced on this page is roughly $33.88 and $46.13 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 AMSC market-implied 1-standard-deviation expected move is approximately 24.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AMSC implied volatility affect this straddle?

AMSC ATM IV is at 85.60% with IV rank near 33.91%, 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.

AMSC Straddle Strategy

AMSC (American Superconductor Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.

American Superconductor Corporation (AMSC), along with its affiliated entities, delivers robust, large-scale power infrastructure and resiliency solutions across the globe. Its operations are primarily divided into two distinct segments: Grid and Wind. The Grid segment, marketed under the Gridtec Solutions brand, supplies essential products and services designed to empower electric utilities, industrial operations, and renewable energy developers. These offerings facilitate the seamless connection, transmission, and distribution of electrical power, complemented by expert engineering and planning services. Within this segment, AMSC delivers transmission planning to diagnose issues like grid congestion, suboptimal power quality, and other systemic vulnerabilities. It provides critical grid interconnection solutions for large-scale renewable projects like wind and solar farms, alongside comprehensive power quality and transmission & distribution (T&D) cable systems.

AMSC (American Superconductor Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $1.93B, a trailing P/E of 13.58, a beta of 3.20 versus the broader market, a 52-week range of 24.87-70.49, average daily share volume of 1.3M, a public-listing history dating back to 1991, approximately 569 full-time employees. These structural characteristics shape how AMSC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.20 indicates AMSC 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 AMSC?

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 AMSC snapshot

As of June 29, 2026, spot at $39.89, ATM IV 85.60%, IV rank 33.91%, expected move 24.54%. The straddle on AMSC 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 18-day expiry.

Why this straddle structure on AMSC specifically: AMSC IV at 85.60% 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 24.54% (roughly $9.79 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AMSC expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMSC should anchor to the underlying notional of $39.89 per share and to the trader's directional view on AMSC stock.

AMSC straddle setup

The AMSC 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 AMSC near $39.89, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMSC chain at a 18-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 AMSC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$40.00	$3.00
Buy 1	Put	$40.00	$3.13

AMSC straddle risk and reward

Net Premium / Debit: -$612.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$602.96
Breakeven(s): $33.88, $46.13
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.

AMSC straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on AMSC. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$3,386.50
$8.83	-77.9%	+$2,504.62
$17.65	-55.8%	+$1,622.74
$26.47	-33.7%	+$740.86
$35.29	-11.5%	-$141.02
$44.10	+10.6%	-$202.10
$52.92	+32.7%	+$679.78
$61.74	+54.8%	+$1,561.66
$70.56	+76.9%	+$2,443.54
$79.38	+99.0%	+$3,325.41

When traders use straddle on AMSC

Straddles on AMSC are pure-volatility plays that profit from large moves in either direction; traders typically buy AMSC straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.

AMSC thesis for this straddle

The market-implied 1-standard-deviation range for AMSC extends from approximately $30.10 on the downside to $49.68 on the upside. A AMSC 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 AMSC IV rank near 33.91% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on AMSC should anchor more to the directional view and the expected-move geometry. As a Industrials name, AMSC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMSC-specific events.

AMSC 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. AMSC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMSC alongside the broader basket even when AMSC-specific fundamentals are unchanged. Always rebuild the position from current AMSC chain quotes before placing a trade.

Frequently asked questions

What is a straddle on AMSC?: A straddle on AMSC is the straddle strategy applied to AMSC (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 AMSC stock trading near $39.89, the strikes shown on this page are snapped to the nearest listed AMSC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AMSC 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 AMSC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 85.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$602.96 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AMSC straddle?: The breakeven for the AMSC straddle priced on this page is roughly $33.88 and $46.13 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 AMSC market-implied 1-standard-deviation expected move is approximately 24.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on AMSC?: Straddles on AMSC are pure-volatility plays that profit from large moves in either direction; traders typically buy AMSC 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 AMSC implied volatility affect this straddle?: AMSC ATM IV is at 85.60% with IV rank near 33.91%, 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.