How are ARVN 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 ARVN straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 56.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$294.14 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ARVN straddle?

The breakeven for the ARVN straddle priced on this page is roughly $6.05 and $11.95 at expiration, derived from the August 14, 2026 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 ARVN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ARVN implied volatility affect this straddle?

ARVN ATM IV is at 56.10% with IV rank near 12.03%, 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.

ARVN Straddle Strategy

ARVN (Arvinas, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Arvinas, Inc. is a biopharmaceutical company in the clinical development stage, dedicated to identifying, advancing, and marketing innovative therapies designed to eliminate disease-causing proteins. The company's pipeline features several promising candidates. These include Bavdegalutamide, a proteolysis targeting chimera (PROTAC) protein degrader, currently in Phase I clinical trials, which specifically targets the androgen receptor (AR) protein to treat metastatic castration-resistant prostate cancer (mCRPC) in men. Another key PROTAC protein degrader is ARV-471, which targets the estrogen receptor protein for patients suffering from metastatic ER-positive/HER2-negative breast cancer. Furthermore, Arvinas is developing ARV-766, an investigational orally bioavailable PROTAC protein degrader also aimed at treating mCRPC in men. The company has strategic alliances with major pharmaceutical entities including Pfizer Inc., Genentech, Inc., F.

ARVN (Arvinas, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $578.8M, a trailing P/E of 62.50, a beta of 1.74 versus the broader market, a 52-week range of 6.96-14.51, average daily share volume of 828K, a public-listing history dating back to 2018, approximately 246 full-time employees. These structural characteristics shape how ARVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.74 indicates ARVN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 62.50 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a straddle on ARVN?

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.

ARVN snapshot

As of August 14, 2026, spot at $8.87, ATM IV 56.10%, IV rank 12.03%, expected move 16.08%. The straddle on ARVN below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 154-day expiry.

Why this straddle structure on ARVN specifically: ARVN IV at 56.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a ARVN straddle, with a market-implied 1-standard-deviation move of approximately 16.08% (roughly $1.43 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ARVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARVN should anchor to the underlying notional of $8.87 per share and to the trader's directional view on ARVN stock.

ARVN straddle setup

The ARVN straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ARVN at $8.87 on that close, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARVN chain at a 154-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 ARVN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$9.00	$1.45
Buy 1	Put	$9.00	$1.50

ARVN straddle risk and reward

Net Premium / Debit: -$295.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$294.14
Breakeven(s): $6.05, $11.95
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.

ARVN straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on ARVN. 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	-99.9%	+$604.00
$1.97	-77.8%	+$407.99
$3.93	-55.7%	+$211.98
$5.89	-33.6%	+$15.97
$7.85	-11.5%	-$180.04
$9.81	+10.6%	-$213.95
$11.77	+32.7%	-$17.94
$13.73	+54.8%	+$178.07
$15.69	+76.9%	+$374.08
$17.65	+99.0%	+$570.09

When traders use straddle on ARVN

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

ARVN thesis for this straddle

The market-implied 1-standard-deviation range for ARVN extends from approximately $7.44 on the downside to $10.30 on the upside. A ARVN 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 ARVN IV rank near 12.03% 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 ARVN at 56.10%. As a Healthcare name, ARVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARVN-specific events.

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

Frequently asked questions

What is a straddle on ARVN?: A straddle on ARVN is the straddle strategy applied to ARVN (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 ARVN stock at $8.87 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ARVN chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ARVN 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 ARVN straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 56.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$294.14 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ARVN straddle?: The breakeven for the ARVN straddle priced on this page is roughly $6.05 and $11.95 at expiration, derived from the August 14, 2026 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 ARVN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on ARVN?: Straddles on ARVN are pure-volatility plays that profit from large moves in either direction; traders typically buy ARVN 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 ARVN implied volatility affect this straddle?: ARVN ATM IV is at 56.10% with IV rank near 12.03%, 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.