CDXS Straddle Strategy
CDXS (Codexis, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Codexis, Inc. discovers, develops, and sells enzymes and other proteins. It offers biocatalyst products and services; intermediate chemicals products that are used for further chemical processing; and Codex biocatalyst panels and kits that enable customers to perform chemistry screening. The company also provides biocatalyst screening and protein engineering services. In addition, it offers CodeEvolver protein engineering technology platform, which helps in developing and delivering biocatalysts that perform chemical transformations and enhance the efficiency and productivity of manufacturing processes. The company's platform is also used to discover novel biotherapeutic drug candidates for targeted human diseases, as well as for molecular biology and in vitro diagnostic enzymes. It sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe.
CDXS (Codexis, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $227.2M, a beta of 2.53 versus the broader market, a 52-week range of 0.96-3.87, average daily share volume of 2.4M, a public-listing history dating back to 2010, approximately 188 full-time employees. These structural characteristics shape how CDXS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.53 indicates CDXS 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 CDXS?
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 CDXS snapshot
As of May 15, 2026, spot at $2.45, ATM IV 240.20%, IV rank 45.29%, expected move 68.86%. The straddle on CDXS 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 CDXS specifically: CDXS IV at 240.20% 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 68.86% (roughly $1.69 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 CDXS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDXS should anchor to the underlying notional of $2.45 per share and to the trader's directional view on CDXS stock.
CDXS straddle setup
The CDXS 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 CDXS near $2.45, the first option leg uses a $2.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CDXS 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 CDXS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.45 | N/A |
| Buy 1 | Put | $2.45 | N/A |
CDXS 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.
CDXS straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on CDXS. 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 CDXS
Straddles on CDXS are pure-volatility plays that profit from large moves in either direction; traders typically buy CDXS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CDXS thesis for this straddle
The market-implied 1-standard-deviation range for CDXS extends from approximately $0.76 on the downside to $4.14 on the upside. A CDXS 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 CDXS IV rank near 45.29% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on CDXS should anchor more to the directional view and the expected-move geometry. As a Healthcare name, CDXS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDXS-specific events.
CDXS 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. CDXS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CDXS alongside the broader basket even when CDXS-specific fundamentals are unchanged. Always rebuild the position from current CDXS chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CDXS?
- A straddle on CDXS is the straddle strategy applied to CDXS (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 CDXS stock trading near $2.45, the strikes shown on this page are snapped to the nearest listed CDXS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CDXS 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 CDXS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 240.20%), 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 CDXS straddle?
- The breakeven for the CDXS 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 CDXS market-implied 1-standard-deviation expected move is approximately 68.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on CDXS?
- Straddles on CDXS are pure-volatility plays that profit from large moves in either direction; traders typically buy CDXS 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 CDXS implied volatility affect this straddle?
- CDXS ATM IV is at 240.20% with IV rank near 45.29%, 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.