BZAI Straddle Strategy
BZAI (Blaize Holdings, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Blaize Holdings, Inc. provides artificial intelligence (AI)-enabled edge computing solutions. It offers AI edge computing products, including Blaize Pathfinder P1600 embedded system on modules, Blaize Xplorer X1600E EDSFF small form factor accelerators, Blaize Xplorer X600M M.2 small form factor accelerator platforms, Blaize Xplorer X1600P PCIe accelerators, Blaize Xplorer X1600P-Q PCIe accelerators, and Blaize Pathfinder 1600-DK embedded kits. The company also provides Blaize AI studio that delivers AI-driven application end-to-end data operations, development operations, and machine learning operation tools; and AI Studio marketplace, which allows users to browse and use AI/ML artifacts to run or share securely across their team and organization. It serves automotive, smart vision, and enterprise computing markets. The company was founded in 2010 and is headquartered in El Dorado Hills, California.
BZAI (Blaize Holdings, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $205.7M, a beta of 0.08 versus the broader market, a 52-week range of 1-6.76, average daily share volume of 9.0M, a public-listing history dating back to 2025, approximately 232 full-time employees. These structural characteristics shape how BZAI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.08 indicates BZAI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a straddle on BZAI?
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 BZAI snapshot
As of May 15, 2026, spot at $1.35, ATM IV 129.10%, IV rank 32.36%, expected move 37.01%. The straddle on BZAI 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 BZAI specifically: BZAI IV at 129.10% 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 37.01% (roughly $0.50 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 BZAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BZAI should anchor to the underlying notional of $1.35 per share and to the trader's directional view on BZAI stock.
BZAI straddle setup
The BZAI 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 BZAI near $1.35, the first option leg uses a $1.35 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BZAI 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 BZAI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.35 | N/A |
| Buy 1 | Put | $1.35 | N/A |
BZAI 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.
BZAI straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on BZAI. 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 BZAI
Straddles on BZAI are pure-volatility plays that profit from large moves in either direction; traders typically buy BZAI straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
BZAI thesis for this straddle
The market-implied 1-standard-deviation range for BZAI extends from approximately $0.85 on the downside to $1.85 on the upside. A BZAI 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 BZAI IV rank near 32.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on BZAI should anchor more to the directional view and the expected-move geometry. As a Technology name, BZAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BZAI-specific events.
BZAI 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. BZAI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BZAI alongside the broader basket even when BZAI-specific fundamentals are unchanged. Always rebuild the position from current BZAI chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on BZAI?
- A straddle on BZAI is the straddle strategy applied to BZAI (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 BZAI stock trading near $1.35, the strikes shown on this page are snapped to the nearest listed BZAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BZAI 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 BZAI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 129.10%), 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 BZAI straddle?
- The breakeven for the BZAI 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 BZAI market-implied 1-standard-deviation expected move is approximately 37.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on BZAI?
- Straddles on BZAI are pure-volatility plays that profit from large moves in either direction; traders typically buy BZAI 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 BZAI implied volatility affect this straddle?
- BZAI ATM IV is at 129.10% with IV rank near 32.36%, 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.