How are CRDO 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 CRDO straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 97.72%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$5,526.04 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CRDO straddle?

The breakeven for the CRDO straddle priced on this page is roughly $203.80 and $316.20 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 CRDO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CRDO implied volatility affect this straddle?

CRDO ATM IV is at 97.72% with IV rank near 54.18%, 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.

CRDO Straddle Strategy

CRDO (Credo Technology Group Holding Ltd), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Credo Technology Group Holding Ltd (CRDO) specializes in delivering advanced high-speed connectivity solutions for both optical and electrical Ethernet applications. Its operational reach extends globally, encompassing the United States, Mexico, Mainland China, Hong Kong, and various other international regions. The company's product offerings include integrated circuits (ICs), active electrical cables (AECs), and SerDes chiplets, all developed utilizing its proprietary serializer/deserializer (SerDes) and digital signal processor (DSP) technologies. Beyond hardware, Credo also provides intellectual property (IP) solutions, particularly focusing on SerDes IP licensing. Established in 2008, the firm's corporate headquarters are situated in San Jose, California.

CRDO (Credo Technology Group Holding Ltd) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $48.47B, a trailing P/E of 101.63, a beta of 3.23 versus the broader market, a 52-week range of 86.485-308.67, average daily share volume of 7.7M, a public-listing history dating back to 2022, approximately 807 full-time employees. These structural characteristics shape how CRDO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.23 indicates CRDO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 101.63 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a straddle on CRDO?

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.

CRDO snapshot

As of August 14, 2026, spot at $259.63, ATM IV 97.72%, IV rank 54.18%, expected move 28.01%. The straddle on CRDO 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 28-day expiry.

Why this straddle structure on CRDO specifically: CRDO IV at 97.72% 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 28.01% (roughly $72.73 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CRDO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRDO should anchor to the underlying notional of $259.63 per share and to the trader's directional view on CRDO stock.

CRDO straddle setup

The CRDO 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 CRDO at $259.63 on that close, the first option leg uses a $260.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRDO chain at a 28-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 CRDO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$260.00	$27.95
Buy 1	Put	$260.00	$28.25

CRDO straddle risk and reward

Net Premium / Debit: -$5,620.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$5,526.04
Breakeven(s): $203.80, $316.20
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.

CRDO straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on CRDO. 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%	+$20,379.00
$57.41	-77.9%	+$14,638.55
$114.82	-55.8%	+$8,898.10
$172.22	-33.7%	+$3,157.64
$229.63	-11.6%	-$2,582.81
$287.03	+10.6%	-$2,916.74
$344.44	+32.7%	+$2,823.71
$401.84	+54.8%	+$8,564.17
$459.25	+76.9%	+$14,304.62
$516.65	+99.0%	+$20,045.07

When traders use straddle on CRDO

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

CRDO thesis for this straddle

The market-implied 1-standard-deviation range for CRDO extends from approximately $186.90 on the downside to $332.36 on the upside. A CRDO 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 CRDO IV rank near 54.18% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on CRDO should anchor more to the directional view and the expected-move geometry. As a Technology name, CRDO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRDO-specific events.

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

Frequently asked questions

What is a straddle on CRDO?: A straddle on CRDO is the straddle strategy applied to CRDO (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 CRDO stock at $259.63 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CRDO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CRDO 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 CRDO straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 97.72%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$5,526.04 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CRDO straddle?: The breakeven for the CRDO straddle priced on this page is roughly $203.80 and $316.20 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 CRDO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on CRDO?: Straddles on CRDO are pure-volatility plays that profit from large moves in either direction; traders typically buy CRDO 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 CRDO implied volatility affect this straddle?: CRDO ATM IV is at 97.72% with IV rank near 54.18%, 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.