How are ARWR 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 ARWR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 62.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$872.29 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ARWR straddle?

The breakeven for the ARWR straddle priced on this page is roughly $70.90 and $89.10 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 ARWR market-implied 1-standard-deviation expected move is approximately 17.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ARWR implied volatility affect this straddle?

ARWR ATM IV is at 62.60% with IV rank near 31.07%, 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.

ARWR Straddle Strategy

ARWR (Arrowhead Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Arrowhead Pharmaceuticals, Inc., founded in 1989 and based in Pasadena, California, is a biopharmaceutical company dedicated to discovering and advancing innovative treatments for complex and challenging-to-treat diseases within the United States. The company's extensive therapeutic pipeline primarily leverages RNA interference (RNAi) technology. Among its advanced clinical programs are: ARO-AAT, a Phase II therapeutic targeting liver diseases associated with alpha-1 antitrypsin deficiency; ARO-APOC3, which is undergoing both Phase 2b and Phase 3 clinical evaluations for hypertriglyceridemia; ARO-ANG3, currently in Phase 2b development to reduce the production of angiopoietin-like protein 3; and ARO-HIF2, a Phase 1b candidate designed to treat clear cell renal cell carcinoma. Arrowhead also has several compounds in earlier clinical development, including ARO-HSD in Phase 1/2a for other liver diseases, ARO-ENaC in Phase 1/2a, aimed at decreasing the epithelial sodium channel alpha subunit in lung airways, and ARO-C3, also in Phase 1/2a, for complement-mediated diseases. Further expanding its diverse portfolio, the company is actively developing ARO-Lung2 for chronic obstructive pulmonary disorder (COPD), ARO-DUX4 for facioscapulohumeral muscular dystrophy, ARO-XDH for uncontrolled gout, and ARO-COV for COVID-19 and other pulmonary-borne pathogens. Beyond its core internal programs, Arrowhead is involved in the progression of JNJ-3989, a subcutaneously administered RNAi therapeutic for chronic hepatitis B virus infection; Olpasiran, intended to reduce apolipoprotein A production; and ARO-AMG1, which targets genetically validated cardiovascular pathways.

ARWR (Arrowhead Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $11.11B, a beta of 1.28 versus the broader market, a 52-week range of 14.3-84.549, average daily share volume of 2.0M, a public-listing history dating back to 1993, approximately 609 full-time employees. These structural characteristics shape how ARWR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places ARWR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on ARWR?

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 ARWR snapshot

As of June 29, 2026, spot at $80.02, ATM IV 62.60%, IV rank 31.07%, expected move 17.95%. The straddle on ARWR 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 ARWR specifically: ARWR IV at 62.60% 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 17.95% (roughly $14.36 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 ARWR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARWR should anchor to the underlying notional of $80.02 per share and to the trader's directional view on ARWR stock.

ARWR straddle setup

The ARWR 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 ARWR near $80.02, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARWR 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 ARWR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$80.00	$4.10
Buy 1	Put	$80.00	$5.00

ARWR straddle risk and reward

Net Premium / Debit: -$910.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$872.29
Breakeven(s): $70.90, $89.10
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.

ARWR straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on ARWR. 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%	+$7,089.00
$17.70	-77.9%	+$5,319.82
$35.39	-55.8%	+$3,550.65
$53.09	-33.7%	+$1,781.47
$70.78	-11.6%	+$12.30
$88.47	+10.6%	-$63.12
$106.16	+32.7%	+$1,706.06
$123.85	+54.8%	+$3,475.23
$141.54	+76.9%	+$5,244.41
$159.24	+99.0%	+$7,013.58

When traders use straddle on ARWR

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

ARWR thesis for this straddle

The market-implied 1-standard-deviation range for ARWR extends from approximately $65.66 on the downside to $94.38 on the upside. A ARWR 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 ARWR IV rank near 31.07% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on ARWR should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ARWR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARWR-specific events.

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

Frequently asked questions

What is a straddle on ARWR?: A straddle on ARWR is the straddle strategy applied to ARWR (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 ARWR stock trading near $80.02, the strikes shown on this page are snapped to the nearest listed ARWR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ARWR 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 ARWR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 62.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$872.29 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ARWR straddle?: The breakeven for the ARWR straddle priced on this page is roughly $70.90 and $89.10 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 ARWR market-implied 1-standard-deviation expected move is approximately 17.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on ARWR?: Straddles on ARWR are pure-volatility plays that profit from large moves in either direction; traders typically buy ARWR 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 ARWR implied volatility affect this straddle?: ARWR ATM IV is at 62.60% with IV rank near 31.07%, 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.