BDTX Straddle Strategy
BDTX (Black Diamond Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Black Diamond Therapeutics, Inc. is a biotechnology enterprise dedicated to discovering, advancing, and bringing to market therapeutic agents specifically designed for patients with genetically characterized tumors. A core part of its pipeline is BDTX-189, an irreversible small molecule inhibitor. This compound is engineered to neutralize oncogenic proteins driven by non-canonical epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 (HER2) driver mutations. The firm is also progressing BDTX-1535, a brain-penetrant inhibitor addressing a range of EGFR mutations, including conventional, inherent resistance, and acquired resistance forms. Concurrently, it is advancing BDTX-4933, another brain-penetrant inhibitor targeting oncogenic BRAF alterations across Class I, II, and III categories. Black Diamond maintains a strategic alliance with OpenEye Scientific Software, Inc.
BDTX (Black Diamond Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $115.7M, a beta of 3.29 versus the broader market, a 52-week range of 1.6-4.94, average daily share volume of 1.4M, a public-listing history dating back to 2020, approximately 21 full-time employees. These structural characteristics shape how BDTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.29 indicates BDTX 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 BDTX?
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.
BDTX snapshot
As of August 14, 2026, spot at $2.04, ATM IV 48.00%, IV rank 6.00%, expected move 13.76%. The straddle on BDTX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this straddle structure on BDTX specifically: BDTX IV at 48.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a BDTX straddle, with a market-implied 1-standard-deviation move of approximately 13.76% (roughly $0.28 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BDTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BDTX should anchor to the underlying notional of $2.04 per share and to the trader's directional view on BDTX stock.
BDTX straddle setup
The BDTX 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 BDTX at $2.04 on that close, the first option leg uses a $2.04 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BDTX chain at a 35-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 BDTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.04 | N/A |
| Buy 1 | Put | $2.04 | N/A |
BDTX straddle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
BDTX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on BDTX. 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.
When traders use straddle on BDTX
Straddles on BDTX are pure-volatility plays that profit from large moves in either direction; traders typically buy BDTX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
BDTX thesis for this straddle
The market-implied 1-standard-deviation range for BDTX extends from approximately $1.76 on the downside to $2.32 on the upside. A BDTX 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 BDTX IV rank near 6.00% 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 BDTX at 48.00%. As a Healthcare name, BDTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BDTX-specific events.
BDTX 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. BDTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BDTX alongside the broader basket even when BDTX-specific fundamentals are unchanged. Always rebuild the position from current BDTX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on BDTX?
- A straddle on BDTX is the straddle strategy applied to BDTX (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 BDTX stock at $2.04 on the most recent close, the strikes shown on this page are snapped to the nearest listed BDTX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BDTX 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 BDTX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 48.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BDTX straddle?
- The breakeven for the BDTX straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 BDTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on BDTX?
- Straddles on BDTX are pure-volatility plays that profit from large moves in either direction; traders typically buy BDTX 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 BDTX implied volatility affect this straddle?
- BDTX ATM IV is at 48.00% with IV rank near 6.00%, 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.