CPSH P&L Curve
CPS Technologies Corporation (CPSH) operates in the Technology sector, specifically the Hardware, Equipment & Parts industry, with a market capitalization near $73.4M, listed on NASDAQ, employing roughly 92 people, carrying a beta of 1.78 to the broader market. CPS Technologies Corporation produces and sells advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets. Led by Brian T. Mackey, public since 1994-04-05.
A profit/loss curve charts the theoretical gain or loss of an options position across a range of underlying prices. It helps traders visualize risk, identify breakeven points, and compare strategies before committing capital.
- Exchange
- NASDAQ
- Sector
- Technology
- Industry
- Hardware, Equipment & Parts
- Market Cap
- $73.4M
- Employees
- 92
- IPO Date
- 1994-04-05
- CEO
- Brian T. Mackey
- Beta
- 1.78
At the current $4.63 spot price with 105.9% ATM implied volatility and 34 days to the front expiration, an at-the-money long straddle carries an approximate combined premium near $1.20, producing breakevens at roughly $3.43 and $5.83. Market-implied 1-standard-deviation range extends from $3.22 to $6.04, which sets the relevant P&L evaluation window for most near-term strategies. Payoff diagrams should be rebuilt from the live options chain; the preceding values are illustrative and assume a single at-the-money straddle for reference.
Frequently asked CPSH pl curve questions
- What does a CPSH ATM straddle cost today?
- Using current CPSH pricing (105.9% ATM IV, 34-day front expiration, $4.63 spot), an at-the-money long straddle (long call + long put at the same strike) carries an approximate combined premium near $1.20 per spread. Breakevens land at roughly $5.83 on the upside and $3.43 on the downside. The estimate uses the Brenner-Subrahmanyam approximation for at-the-money options under Black-Scholes.
- How do I read an options P&L curve?
- An options P&L curve plots theoretical position value at expiration (or at any chosen evaluation date) against the underlying price. The X-axis is the underlying price scenario, the Y-axis is position dollar P&L. The shape of the curve tells you the strategy's directional sensitivity, breakeven points, maximum profit and loss levels, and where time decay or volatility shifts will be most impactful. Multi-leg structures combine the curves of the individual legs to produce composite payoff diagrams.
- What's the difference between a P&L curve and a payoff diagram?
- Strictly: a payoff diagram shows option value at expiration (no time premium left), while a P&L curve typically shows position value at any evaluation date (with remaining time premium). The expiration payoff diagram has kinks at the strikes; the early P&L curve is smooth. For directional-vega trades, the early P&L curve also responds to IV shifts that the expiration payoff diagram does not capture - which is why options traders often look at both views.
- Why are illustrative CPSH P&L numbers approximate?
- The numbers above use Black-Scholes assumptions (lognormal returns, constant volatility, no early exercise, no dividends). Real-world option prices reflect skew, term structure, jump risk, and (for US-style options) early exercise premium. Use the live options chain for actual quoted bid/ask prices when sizing trades; the values here illustrate magnitude only.