How are CLS 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 CLS straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 64.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$4,675.02 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CLS straddle?

The breakeven for the CLS straddle priced on this page is roughly $286.85 and $383.15 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CLS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CLS implied volatility affect this straddle?

CLS ATM IV is at 64.60% with IV rank near 26.44%, 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.

CLS Straddle Strategy

CLS (Celestica Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.

Headquartered in Toronto, Canada, and established in 1994, Celestica Inc. delivers comprehensive hardware platform and supply chain solutions to clients across North America, Europe, and Asia. The company operates through two key segments: Advanced Technology Solutions and Connectivity & Cloud Solutions. Celestica's extensive service portfolio encompasses the entire product lifecycle, from initial design and development, engineering, and supply chain management to new product introduction, component sourcing, electronic manufacturing and assembly, rigorous testing, complex mechanical integration, and systems integration. Further offerings include precision machining, order fulfillment, logistics, asset management, product licensing, and post-market repair and return services. Additionally, Celestica provides a wide array of products, including enterprise-grade data communication and information processing infrastructure such as routers, switches, data center interconnects, edge solutions, servers, and storage products. They also supply individual electronic components like capacitors, microprocessors, resistors, and memory modules, alongside power inverters, energy storage products, and smart meters.

CLS (Celestica Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $39.03B, a trailing P/E of 34.93, a beta of 1.52 versus the broader market, a 52-week range of 173.23-474.03, average daily share volume of 2.4M, a public-listing history dating back to 1998, approximately 24K full-time employees. These structural characteristics shape how CLS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.52 indicates CLS 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 CLS?

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.

CLS snapshot

As of August 14, 2026, spot at $335.28, ATM IV 64.60%, IV rank 26.44%, expected move 18.52%. The straddle on CLS below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this straddle structure on CLS specifically: CLS IV at 64.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a CLS straddle, with a market-implied 1-standard-deviation move of approximately 18.52% (roughly $62.10 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CLS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLS should anchor to the underlying notional of $335.28 per share and to the trader's directional view on CLS stock.

CLS straddle setup

The CLS straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CLS at $335.28 on that close, the first option leg uses a $335.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLS chain at a 28-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 CLS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$335.00	$24.85
Buy 1	Put	$335.00	$23.30

CLS straddle risk and reward

Net Premium / Debit: -$4,815.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$4,675.02
Breakeven(s): $286.85, $383.15
Risk / Reward Ratio: Unbounded

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.

CLS straddle payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$28,684.00
$74.14	-77.9%	+$21,270.88
$148.27	-55.8%	+$13,857.77
$222.40	-33.7%	+$6,444.65
$296.53	-11.6%	-$968.46
$370.67	+10.6%	-$1,248.42
$444.80	+32.7%	+$6,164.69
$518.93	+54.8%	+$13,577.81
$593.06	+76.9%	+$20,990.92
$667.19	+99.0%	+$28,404.04

When traders use straddle on CLS

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

CLS thesis for this straddle

The market-implied 1-standard-deviation range for CLS extends from approximately $273.18 on the downside to $397.38 on the upside. A CLS 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 CLS IV rank near 26.44% 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 CLS at 64.60%. As a Technology name, CLS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLS-specific events.

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

Frequently asked questions

What is a straddle on CLS?: A straddle on CLS is the straddle strategy applied to CLS (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 CLS stock at $335.28 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CLS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CLS 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 CLS straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 64.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$4,675.02 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CLS straddle?: The breakeven for the CLS straddle priced on this page is roughly $286.85 and $383.15 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CLS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on CLS?: Straddles on CLS are pure-volatility plays that profit from large moves in either direction; traders typically buy CLS 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 CLS implied volatility affect this straddle?: CLS ATM IV is at 64.60% with IV rank near 26.44%, 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.