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 end-of-day chain at a 30-day expiry (ATM IV 308.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$537.82 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 $119.08 and $130.93 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 CPK market-implied 1-standard-deviation expected move is approximately 88.33%; 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 308.10% with IV rank near 63.96%, 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.

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 $3.02B, a trailing P/E of 20.27, a beta of 0.70 versus the broader market, a 52-week range of 118.84-140.59, average daily share volume of 150K, 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 0.70 places CPK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. 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.

Current CPK snapshot

As of June 29, 2026, spot at $122.60, ATM IV 308.10%, IV rank 63.96%, expected move 88.33%. The straddle on CPK 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 CPK specifically: CPK IV at 308.10% 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 88.33% (roughly $108.29 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 CPK expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPK should anchor to the underlying notional of $122.60 per share and to the trader's directional view on CPK stock.

CPK straddle setup

The CPK 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 CPK near $122.60, the first option leg uses a $125.00 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 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 CPK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$125.00	$2.45
Buy 1	Put	$125.00	$3.48

CPK straddle risk and reward

Net Premium / Debit: -$592.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$537.82
Breakeven(s): $119.08, $130.93
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%	+$11,906.50
$27.12	-77.9%	+$9,195.86
$54.22	-55.8%	+$6,485.21
$81.33	-33.7%	+$3,774.57
$108.44	-11.6%	+$1,063.93
$135.54	+10.6%	+$461.72
$162.65	+32.7%	+$3,172.36
$189.76	+54.8%	+$5,883.00
$216.86	+76.9%	+$8,593.65
$243.97	+99.0%	+$11,304.29

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 $14.31 on the downside to $230.89 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 63.96% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on CPK should anchor more to the directional view and the expected-move geometry. 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 trading near $122.60, the strikes shown on this page are snapped to the nearest listed CPK chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 308.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$537.82 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 $119.08 and $130.93 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 CPK market-implied 1-standard-deviation expected move is approximately 88.33%; 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 308.10% with IV rank near 63.96%, 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.