CRBU Straddle Strategy
CRBU (Caribou Biosciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Caribou Biosciences, Inc. operates as a clinical-stage biopharmaceutical firm dedicated to pioneering genome-edited allogeneic cell therapies. These cutting-edge treatments are engineered to address both hematologic malignancies (blood cancers) and solid tumors, serving patients across the United States and internationally. Among its primary therapeutic candidates are CB-010, an allogeneic anti-CD19 CAR-T cell therapy currently undergoing Phase 1 clinical trials for relapsed or refractory B cell non-Hodgkin lymphoma, and CB-011, an allogeneic anti-BCMA CAR-T cell therapy targeting relapsed or refractory multiple myeloma. Caribou Biosciences is additionally developing CB-012, an allogeneic anti-CD371 CAR-T cell therapy for relapsed or refractory acute myeloid leukemia, along with CB-020, an allogeneic CAR-NK cell therapy aimed at solid tumors. The company also maintains a collaborative agreement with AbbVie Manufacturing Management Unlimited Company for the joint advancement of CAR-T cell therapies. Founded in 2011, Caribou Biosciences' headquarters are located in Berkeley, California.
CRBU (Caribou Biosciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $168.6M, a beta of 2.28 versus the broader market, a 52-week range of 1.38-3.535, average daily share volume of 1.8M, a public-listing history dating back to 2021, approximately 97 full-time employees. These structural characteristics shape how CRBU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.28 indicates CRBU 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 CRBU?
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.
CRBU snapshot
As of August 14, 2026, spot at $1.60, ATM IV 126.00%, IV rank 25.77%, expected move 36.12%. The straddle on CRBU below is built from the 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 CRBU specifically: CRBU IV at 126.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a CRBU straddle, with a market-implied 1-standard-deviation move of approximately 36.12% (roughly $0.58 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 CRBU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRBU should anchor to the underlying notional of $1.60 per share and to the trader's directional view on CRBU stock.
CRBU straddle setup
The CRBU 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 CRBU at $1.60 on that close, the first option leg uses a $1.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRBU 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 CRBU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.60 | N/A |
| Buy 1 | Put | $1.60 | N/A |
CRBU straddle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
CRBU straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on CRBU. 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.
When traders use straddle on CRBU
Straddles on CRBU are pure-volatility plays that profit from large moves in either direction; traders typically buy CRBU straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CRBU thesis for this straddle
The market-implied 1-standard-deviation range for CRBU extends from approximately $1.02 on the downside to $2.18 on the upside. A CRBU 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 CRBU IV rank near 25.77% 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 CRBU at 126.00%. As a Healthcare name, CRBU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRBU-specific events.
CRBU 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. CRBU positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRBU alongside the broader basket even when CRBU-specific fundamentals are unchanged. Always rebuild the position from current CRBU chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CRBU?
- A straddle on CRBU is the straddle strategy applied to CRBU (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 CRBU stock at $1.60 on the most recent close, the strikes shown on this page are snapped to the nearest listed CRBU chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CRBU 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 CRBU straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 126.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRBU straddle?
- The breakeven for the CRBU straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 CRBU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 36.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on CRBU?
- Straddles on CRBU are pure-volatility plays that profit from large moves in either direction; traders typically buy CRBU 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 CRBU implied volatility affect this straddle?
- CRBU ATM IV is at 126.00% with IV rank near 25.77%, 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.