How are AXTA 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 AXTA straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$211.68 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AXTA straddle?

The breakeven for the AXTA straddle priced on this page is roughly $31.85 and $36.15 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 AXTA market-implied 1-standard-deviation expected move is approximately 10.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AXTA implied volatility affect this straddle?

AXTA ATM IV is at 36.40% with IV rank near 21.71%, 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.

AXTA Straddle Strategy

AXTA (Axalta Coating Systems Ltd.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.

Axalta Coating Systems Ltd. is a leading global enterprise focused on the development, sale, and distribution of advanced, high-performance coating solutions. Its operations extend across North America, Europe, the Middle East, Africa, the Asia Pacific region, and Latin America. The company's business is organized into two principal divisions: Performance Coatings and Transportation Coatings. Within its Performance Coatings segment, Axalta provides a wide array of water-borne and solvent-borne products specifically designed for the repair of damaged vehicles. These products serve a diverse clientele, including independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. This segment also supplies functional and decorative liquid and powder coatings for an extensive range of industrial uses.

AXTA (Axalta Coating Systems Ltd.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $7.38B, a trailing P/E of 19.97, a beta of 1.26 versus the broader market, a 52-week range of 24.937-35.72, average daily share volume of 2.6M, a public-listing history dating back to 2014, approximately 13K full-time employees. These structural characteristics shape how AXTA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.26 places AXTA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on AXTA?

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 AXTA snapshot

As of June 30, 2026, spot at $34.20, ATM IV 36.40%, IV rank 21.71%, expected move 10.44%. The straddle on AXTA 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 AXTA specifically: AXTA IV at 36.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a AXTA straddle, with a market-implied 1-standard-deviation move of approximately 10.44% (roughly $3.57 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 AXTA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXTA should anchor to the underlying notional of $34.20 per share and to the trader's directional view on AXTA stock.

AXTA straddle setup

The AXTA 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 AXTA near $34.20, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AXTA 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 AXTA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$34.00	$1.23
Buy 1	Put	$34.00	$0.93

AXTA straddle risk and reward

Net Premium / Debit: -$215.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$211.68
Breakeven(s): $31.85, $36.15
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.

AXTA straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on AXTA. 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%	+$3,184.00
$7.57	-77.9%	+$2,427.93
$15.13	-55.8%	+$1,671.86
$22.69	-33.6%	+$915.79
$30.25	-11.5%	+$159.72
$37.81	+10.6%	+$166.35
$45.37	+32.7%	+$922.42
$52.93	+54.8%	+$1,678.49
$60.50	+76.9%	+$2,434.56
$68.06	+99.0%	+$3,190.63

When traders use straddle on AXTA

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

AXTA thesis for this straddle

The market-implied 1-standard-deviation range for AXTA extends from approximately $30.63 on the downside to $37.77 on the upside. A AXTA 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 AXTA IV rank near 21.71% 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 AXTA at 36.40%. As a Basic Materials name, AXTA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXTA-specific events.

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

Frequently asked questions

What is a straddle on AXTA?: A straddle on AXTA is the straddle strategy applied to AXTA (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 AXTA stock trading near $34.20, the strikes shown on this page are snapped to the nearest listed AXTA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AXTA 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 AXTA straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$211.68 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AXTA straddle?: The breakeven for the AXTA straddle priced on this page is roughly $31.85 and $36.15 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 AXTA market-implied 1-standard-deviation expected move is approximately 10.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on AXTA?: Straddles on AXTA are pure-volatility plays that profit from large moves in either direction; traders typically buy AXTA 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 AXTA implied volatility affect this straddle?: AXTA ATM IV is at 36.40% with IV rank near 21.71%, 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.