How are CPRI 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 CPRI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 74.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$659.47 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CPRI straddle?

The breakeven for the CPRI straddle priced on this page is roughly $10.90 and $24.10 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 CPRI market-implied 1-standard-deviation expected move is approximately 21.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CPRI implied volatility affect this straddle?

CPRI ATM IV is at 74.80% with IV rank near 13.62%, 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.

CPRI Straddle Strategy

CPRI (Capri Holdings Limited), in the Consumer Cyclical sector, (Luxury Goods industry), listed on NYSE.

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also licenses Versace brand name and trademarks to third parties to retail and/or wholesale its products; and has licensing agreements to the manufacture and sale of jeans, fragrances, watches, eyewear, and home furnishings. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

CPRI (Capri Holdings Limited) trades in the Consumer Cyclical sector, specifically Luxury Goods, with a market capitalization of approximately $2.05B, a beta of 1.43 versus the broader market, a 52-week range of 16.22-28.27, average daily share volume of 2.8M, a public-listing history dating back to 2011, approximately 10K full-time employees. These structural characteristics shape how CPRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.43 indicates CPRI 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 CPRI?

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 CPRI snapshot

As of May 15, 2026, spot at $17.23, ATM IV 74.80%, IV rank 13.62%, expected move 21.44%. The straddle on CPRI 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 217-day expiry.

Why this straddle structure on CPRI specifically: CPRI IV at 74.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a CPRI straddle, with a market-implied 1-standard-deviation move of approximately 21.44% (roughly $3.69 on the underlying). The 217-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPRI should anchor to the underlying notional of $17.23 per share and to the trader's directional view on CPRI stock.

CPRI straddle setup

The CPRI 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 CPRI near $17.23, the first option leg uses a $17.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPRI chain at a 217-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 CPRI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$17.50	$3.40
Buy 1	Put	$17.50	$3.20

CPRI straddle risk and reward

Net Premium / Debit: -$660.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$659.47
Breakeven(s): $10.90, $24.10
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.

CPRI straddle payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$1,089.00
$3.82	-77.8%	+$708.15
$7.63	-55.7%	+$327.29
$11.44	-33.6%	-$53.56
$15.24	-11.5%	-$434.42
$19.05	+10.6%	-$504.73
$22.86	+32.7%	-$123.87
$26.67	+54.8%	+$256.98
$30.48	+76.9%	+$637.83
$34.29	+99.0%	+$1,018.69

When traders use straddle on CPRI

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

CPRI thesis for this straddle

The market-implied 1-standard-deviation range for CPRI extends from approximately $13.54 on the downside to $20.92 on the upside. A CPRI 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 CPRI IV rank near 13.62% 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 CPRI at 74.80%. As a Consumer Cyclical name, CPRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPRI-specific events.

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

Frequently asked questions

What is a straddle on CPRI?: A straddle on CPRI is the straddle strategy applied to CPRI (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 CPRI stock trading near $17.23, the strikes shown on this page are snapped to the nearest listed CPRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CPRI 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 CPRI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 74.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$659.47 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPRI straddle?: The breakeven for the CPRI straddle priced on this page is roughly $10.90 and $24.10 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 CPRI market-implied 1-standard-deviation expected move is approximately 21.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on CPRI?: Straddles on CPRI are pure-volatility plays that profit from large moves in either direction; traders typically buy CPRI 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 CPRI implied volatility affect this straddle?: CPRI ATM IV is at 74.80% with IV rank near 13.62%, 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.