BOBS Straddle Strategy

BOBS (Bob's Discount Furniture, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NYSE.

Bob's Discount Furniture, Inc. engages in retailing home furnishings in the United States. It provides products in several categories including living rooms, bedrooms, mattresses, dining rooms, occasional tables, lamps, outdoors, and accessories. The company sells its products through Internet. The company was formerly known as BDF Holding Corp. and changed its name to Bob's Discount Furniture, Inc. in October 2025. The company was founded in 1991 and is based in Manchester, Connecticut.

BOBS (Bob's Discount Furniture, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $1.60B, a trailing P/E of 11.13, a beta of 0.00 versus the broader market, a 52-week range of 9.74-23.49, average daily share volume of 1.2M, a public-listing history dating back to 1991, approximately 6K full-time employees. These structural characteristics shape how BOBS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates BOBS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.13 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a straddle on BOBS?

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 BOBS snapshot

As of May 15, 2026, spot at $11.66, ATM IV 79.00%, expected move 22.65%. The straddle on BOBS 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 34-day expiry.

Why this straddle structure on BOBS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for BOBS is inferred from ATM IV at 79.00% alone, with a market-implied 1-standard-deviation move of approximately 22.65% (roughly $2.64 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BOBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on BOBS should anchor to the underlying notional of $11.66 per share and to the trader's directional view on BOBS stock.

BOBS straddle setup

The BOBS 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 BOBS near $11.66, the first option leg uses a $11.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BOBS chain at a 34-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 BOBS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$11.66	N/A
Buy 1	Put	$11.66	N/A

BOBS 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.

BOBS straddle payoff curve

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

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

BOBS thesis for this straddle

The market-implied 1-standard-deviation range for BOBS extends from approximately $9.02 on the downside to $14.30 on the upside. A BOBS 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. As a Consumer Cyclical name, BOBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BOBS-specific events.

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

Frequently asked questions

What is a straddle on BOBS?: A straddle on BOBS is the straddle strategy applied to BOBS (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 BOBS stock trading near $11.66, the strikes shown on this page are snapped to the nearest listed BOBS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BOBS 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 BOBS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 79.00%), 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 BOBS straddle?: The breakeven for the BOBS straddle priced on this page is no defined breakeven on the modeled curve 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 BOBS market-implied 1-standard-deviation expected move is approximately 22.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on BOBS?: Straddles on BOBS are pure-volatility plays that profit from large moves in either direction; traders typically buy BOBS 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 BOBS implied volatility affect this straddle?: Current BOBS ATM IV is 79.00%; IV rank context is unavailable in the current snapshot.