How are CPK 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 CPK straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$629.35 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CPK straddle?

The breakeven for the CPK straddle priced on this page is roughly $128.65 and $141.35 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 CPK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CPK implied volatility affect this straddle?

CPK ATM IV is at 20.60% with IV rank near 2.62%, 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.

CPK Straddle Strategy

CPK (Chesapeake Utilities Corporation), in the Utilities sector, (Regulated Gas industry), listed on NYSE.

Chesapeake Utilities Corporation (CPK) operates as a diversified energy enterprise, delivering a range of energy solutions to its customers. The company's operations are distinctly divided into two primary segments: Regulated Energy and Unregulated Energy. The Regulated Energy division manages essential utility services, which include the distribution of natural gas across central and southern Delaware, Maryland's eastern shore, and various parts of Florida. This segment also handles the regulated transmission of natural gas throughout the Delmarva Peninsula and within Florida, in addition to providing regulated electricity distribution services in specific regions of northeast and northwest Florida. Conversely, the Unregulated Energy segment encompasses a broader array of activities. These include propane distribution across the Mid-Atlantic region, North Carolina, South Carolina, and Florida, along with unregulated natural gas transmission and supply services in central and eastern Ohio.

CPK (Chesapeake Utilities Corporation) trades in the Utilities sector, specifically Regulated Gas, with a market capitalization of approximately $3.23B, a trailing P/E of 21.58, a beta of 0.68 versus the broader market, a 52-week range of 118.88-140.83, average daily share volume of 170K, a public-listing history dating back to 1980, approximately 1K full-time employees. These structural characteristics shape how CPK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.68 indicates CPK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CPK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on CPK?

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.

CPK snapshot

As of August 14, 2026, spot at $135.62, ATM IV 20.60%, IV rank 2.62%, expected move 5.91%. The straddle on CPK 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 35-day expiry.

Why this straddle structure on CPK specifically: CPK IV at 20.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a CPK straddle, with a market-implied 1-standard-deviation move of approximately 5.91% (roughly $8.01 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPK expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPK should anchor to the underlying notional of $135.62 per share and to the trader's directional view on CPK stock.

CPK straddle setup

The CPK 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 CPK at $135.62 on that close, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPK chain at a 35-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 CPK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$135.00	$3.18
Buy 1	Put	$135.00	$3.18

CPK straddle risk and reward

Net Premium / Debit: -$635.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$629.35
Breakeven(s): $128.65, $141.35
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.

CPK straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on CPK. 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%	+$12,864.00
$30.00	-77.9%	+$9,865.48
$59.98	-55.8%	+$6,866.95
$89.97	-33.7%	+$3,868.43
$119.95	-11.6%	+$869.91
$149.94	+10.6%	+$858.61
$179.92	+32.7%	+$3,857.14
$209.91	+54.8%	+$6,855.66
$239.89	+76.9%	+$9,854.18
$269.88	+99.0%	+$12,852.70

When traders use straddle on CPK

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

CPK thesis for this straddle

The market-implied 1-standard-deviation range for CPK extends from approximately $127.61 on the downside to $143.63 on the upside. A CPK 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 CPK IV rank near 2.62% 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 CPK at 20.60%. As a Utilities name, CPK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPK-specific events.

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

Frequently asked questions

What is a straddle on CPK?: A straddle on CPK is the straddle strategy applied to CPK (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 CPK stock at $135.62 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CPK chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CPK 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 CPK straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$629.35 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPK straddle?: The breakeven for the CPK straddle priced on this page is roughly $128.65 and $141.35 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 CPK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on CPK?: Straddles on CPK are pure-volatility plays that profit from large moves in either direction; traders typically buy CPK 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 CPK implied volatility affect this straddle?: CPK ATM IV is at 20.60% with IV rank near 2.62%, 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.