How are CPRT 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 CPRT straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$344.86 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CPRT straddle?

The breakeven for the CPRT straddle priced on this page is roughly $29.05 and $35.95 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 CPRT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CPRT implied volatility affect this straddle?

CPRT ATM IV is at 42.20% with IV rank near 12.66%, 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.

CPRT Straddle Strategy

CPRT (Copart, Inc.), in the Industrials sector, (Specialty Business Services industry), listed on NASDAQ.

Copart, Inc. stands as a prominent global provider of online vehicle auctions and comprehensive vehicle remarketing services. The company extends its operations across numerous international markets, including the United States, the United Kingdom, Germany, Brazil, Canada, the United Arab Emirates, Spain, Finland, Oman, the Republic of Ireland, and Bahrain. At its core, Copart enables the buying and selling of vehicles over the internet through its sophisticated "virtual bidding" online auction platform. Its extensive range of services supports the entire vehicle disposition process, encompassing aspects such as direct online access for sellers, expert salvage and general vehicle valuation, end-of-life vehicle handling, logistics and transportation management, and dedicated vehicle inspection facilities. Additional offerings include on-demand reporting, efficient title processing and express services, loan payoff assistance, adaptable vehicle processing programs, and direct "Buy It Now" purchase options, alongside specialized services for dealerships. Beyond its primary auction site, Copart manages several direct vehicle acquisition and sales platforms, such as BluCar, CashForCars.com, CashForCars.ca, CashForCars.de, CashForCars.co.uk, and Cash-for-cars.ie.

CPRT (Copart, Inc.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $26.84B, a trailing P/E of 17.87, a beta of 1.01 versus the broader market, a 52-week range of 26.81-50.11, average daily share volume of 10.6M, a public-listing history dating back to 1994, approximately 14K full-time employees. These structural characteristics shape how CPRT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places CPRT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on CPRT?

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.

CPRT snapshot

As of August 14, 2026, spot at $31.70, ATM IV 42.20%, IV rank 12.66%, expected move 12.10%. The straddle on CPRT 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 CPRT specifically: CPRT IV at 42.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a CPRT straddle, with a market-implied 1-standard-deviation move of approximately 12.10% (roughly $3.84 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 CPRT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPRT should anchor to the underlying notional of $31.70 per share and to the trader's directional view on CPRT stock.

CPRT straddle setup

The CPRT 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 CPRT at $31.70 on that close, the first option leg uses a $32.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPRT 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 CPRT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$32.50	$1.35
Buy 1	Put	$32.50	$2.10

CPRT straddle risk and reward

Net Premium / Debit: -$345.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$344.86
Breakeven(s): $29.05, $35.95
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.

CPRT straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on CPRT. 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%	+$2,904.00
$7.02	-77.9%	+$2,203.21
$14.03	-55.8%	+$1,502.41
$21.03	-33.6%	+$801.62
$28.04	-11.5%	+$100.82
$35.05	+10.6%	-$90.03
$42.06	+32.7%	+$610.76
$49.07	+54.8%	+$1,311.56
$56.07	+76.9%	+$2,012.35
$63.08	+99.0%	+$2,713.15

When traders use straddle on CPRT

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

CPRT thesis for this straddle

The market-implied 1-standard-deviation range for CPRT extends from approximately $27.86 on the downside to $35.54 on the upside. A CPRT 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 CPRT IV rank near 12.66% 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 CPRT at 42.20%. As a Industrials name, CPRT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPRT-specific events.

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

Frequently asked questions

What is a straddle on CPRT?: A straddle on CPRT is the straddle strategy applied to CPRT (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 CPRT stock at $31.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CPRT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CPRT 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 CPRT straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$344.86 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPRT straddle?: The breakeven for the CPRT straddle priced on this page is roughly $29.05 and $35.95 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 CPRT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on CPRT?: Straddles on CPRT are pure-volatility plays that profit from large moves in either direction; traders typically buy CPRT 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 CPRT implied volatility affect this straddle?: CPRT ATM IV is at 42.20% with IV rank near 12.66%, 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.