BUR Straddle Strategy
BUR (Burford Capital Limited), in the Financial Services sector, (Asset Management industry), listed on NYSE.
Burford Capital Limited, through its subsidiaries, provides legal finance products and services. The company offers asset management services, including core legal finance, complex strategies, and post-settlement finance. The company was incorporated in 2009 and is based in Saint Peter Port, Guernsey.
BUR (Burford Capital Limited) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $988.0M, a trailing P/E of 15.78, a beta of 1.08 versus the broader market, a 52-week range of 3.59-15.1, average daily share volume of 4.0M, a public-listing history dating back to 2020, approximately 160 full-time employees. These structural characteristics shape how BUR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.08 places BUR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BUR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on BUR?
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 BUR snapshot
As of May 15, 2026, spot at $4.69, ATM IV 52.40%, IV rank 22.36%, expected move 15.02%. The straddle on BUR 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 BUR specifically: BUR IV at 52.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a BUR straddle, with a market-implied 1-standard-deviation move of approximately 15.02% (roughly $0.70 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 BUR expiries trade a higher absolute premium for lower per-day decay. Position sizing on BUR should anchor to the underlying notional of $4.69 per share and to the trader's directional view on BUR stock.
BUR straddle setup
The BUR 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 BUR near $4.69, the first option leg uses a $4.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BUR 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 BUR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.69 | N/A |
| Buy 1 | Put | $4.69 | N/A |
BUR 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.
BUR straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on BUR. 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 BUR
Straddles on BUR are pure-volatility plays that profit from large moves in either direction; traders typically buy BUR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
BUR thesis for this straddle
The market-implied 1-standard-deviation range for BUR extends from approximately $3.99 on the downside to $5.39 on the upside. A BUR 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 BUR IV rank near 22.36% 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 BUR at 52.40%. As a Financial Services name, BUR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BUR-specific events.
BUR 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. BUR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BUR alongside the broader basket even when BUR-specific fundamentals are unchanged. Always rebuild the position from current BUR chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on BUR?
- A straddle on BUR is the straddle strategy applied to BUR (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 BUR stock trading near $4.69, the strikes shown on this page are snapped to the nearest listed BUR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BUR 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 BUR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 52.40%), 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 BUR straddle?
- The breakeven for the BUR 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 BUR market-implied 1-standard-deviation expected move is approximately 15.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on BUR?
- Straddles on BUR are pure-volatility plays that profit from large moves in either direction; traders typically buy BUR 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 BUR implied volatility affect this straddle?
- BUR ATM IV is at 52.40% with IV rank near 22.36%, 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.