CGNX Straddle Strategy

CGNX (Cognex Corporation), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.

Cognex Corporation specializes in machine vision technology, offering solutions that interpret and process visual data to streamline and automate production and logistics operations globally. Their advanced vision systems enable the automated manufacturing and tracking of individual components or finished goods, such as mobile devices, pharmaceutical containers, and automotive parts. This is achieved by precisely locating, recognizing, examining, and gauging items throughout their journey from production to delivery. The company provides a comprehensive software portfolio, including VisionPro, a collection of patented tools for sophisticated development; QuickBuild, an intuitive platform enabling users to create vision applications via a graphical, flowchart interface; and its specialized deep learning vision software. Beyond software, their offerings encompass robust vision sensors for tasks like ensuring component presence and accurate sizing, alongside the versatile In-Sight series of integrated vision systems and sensors. These tools support a variety of critical inspection functions, such as pinpointing part locations, confirming identities, precise dimensioning, validating assembly, and guiding robotics.

CGNX (Cognex Corporation) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $11.08B, a trailing P/E of 77.75, a beta of 1.51 versus the broader market, a 52-week range of 31.42-71.9, average daily share volume of 2.2M, a public-listing history dating back to 1989, approximately 3K full-time employees. These structural characteristics shape how CGNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.51 indicates CGNX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 77.75 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. CGNX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on CGNX?

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 CGNX snapshot

As of June 29, 2026, spot at $67.63, ATM IV 48.80%, IV rank 26.80%, expected move 13.99%. The straddle on CGNX 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 18-day expiry.

Why this straddle structure on CGNX specifically: CGNX IV at 48.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a CGNX straddle, with a market-implied 1-standard-deviation move of approximately 13.99% (roughly $9.46 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CGNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGNX should anchor to the underlying notional of $67.63 per share and to the trader's directional view on CGNX stock.

CGNX straddle setup

The CGNX 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 CGNX near $67.63, the first option leg uses a $67.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGNX chain at a 18-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 CGNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$67.63	N/A
Buy 1	Put	$67.63	N/A

CGNX 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.

CGNX straddle payoff curve

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

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

CGNX thesis for this straddle

The market-implied 1-standard-deviation range for CGNX extends from approximately $58.17 on the downside to $77.09 on the upside. A CGNX 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 CGNX IV rank near 26.80% 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 CGNX at 48.80%. As a Technology name, CGNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGNX-specific events.

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

Frequently asked questions

What is a straddle on CGNX?: A straddle on CGNX is the straddle strategy applied to CGNX (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 CGNX stock trading near $67.63, the strikes shown on this page are snapped to the nearest listed CGNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CGNX 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 CGNX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 48.80%), 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 CGNX straddle?: The breakeven for the CGNX 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 CGNX market-implied 1-standard-deviation expected move is approximately 13.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on CGNX?: Straddles on CGNX are pure-volatility plays that profit from large moves in either direction; traders typically buy CGNX 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 CGNX implied volatility affect this straddle?: CGNX ATM IV is at 48.80% with IV rank near 26.80%, 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.