How are CXW 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 CXW straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 41.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$334.97 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CXW straddle?

The breakeven for the CXW straddle priced on this page is roughly $29.63 and $36.38 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 CXW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CXW implied volatility affect this straddle?

CXW ATM IV is at 41.90% with IV rank near 18.38%, 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.

CXW Straddle Strategy

CXW (CoreCivic, Inc.), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.

CoreCivic, Inc. specializes in the ownership and management of a diverse portfolio of correctional institutions, detention centers, and residential reentry facilities throughout the United States. Its operations are organized into three distinct divisions: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. The company offers a comprehensive suite of services to its government partners, encompassing the administration of correctional and detention services, the provision of a network of residential reentry centers designed to combat the nation's recidivism challenges, and tailored government real estate solutions. Within these facilities, CoreCivic delivers a range of rehabilitative and educational initiatives, including fundamental schooling, spiritual support, practical life skills and vocational training, and programs for substance abuse recovery. As of the close of 2021, CoreCivic's holdings included 46 correctional and detention sites, 26 residential reentry hubs, and 10 properties designated for leasing. The organization was established in 1983 and maintains its principal offices in Brentwood, Tennessee.

CXW (CoreCivic, Inc.) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $3.32B, a trailing P/E of 27.11, a beta of 0.58 versus the broader market, a 52-week range of 15.74-34.86, average daily share volume of 1.2M, a public-listing history dating back to 1997, approximately 14K full-time employees. These structural characteristics shape how CXW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.58 indicates CXW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CXW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on CXW?

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.

CXW snapshot

As of August 14, 2026, spot at $32.53, ATM IV 41.90%, IV rank 18.38%, expected move 12.01%. The straddle on CXW 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 CXW specifically: CXW IV at 41.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CXW straddle, with a market-implied 1-standard-deviation move of approximately 12.01% (roughly $3.91 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 CXW expiries trade a higher absolute premium for lower per-day decay. Position sizing on CXW should anchor to the underlying notional of $32.53 per share and to the trader's directional view on CXW stock.

CXW straddle setup

The CXW 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 CXW at $32.53 on that close, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CXW 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 CXW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$33.00	$1.38
Buy 1	Put	$33.00	$2.00

CXW straddle risk and reward

Net Premium / Debit: -$337.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$334.97
Breakeven(s): $29.63, $36.38
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.

CXW straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on CXW. 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%	+$2,961.50
$7.20	-77.9%	+$2,242.35
$14.39	-55.8%	+$1,523.21
$21.58	-33.6%	+$804.06
$28.78	-11.5%	+$84.92
$35.97	+10.6%	-$40.77
$43.16	+32.7%	+$678.37
$50.35	+54.8%	+$1,397.52
$57.54	+76.9%	+$2,116.67
$64.73	+99.0%	+$2,835.81

When traders use straddle on CXW

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

CXW thesis for this straddle

The market-implied 1-standard-deviation range for CXW extends from approximately $28.62 on the downside to $36.44 on the upside. A CXW 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 CXW IV rank near 18.38% 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 CXW at 41.90%. As a Real Estate name, CXW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CXW-specific events.

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

Frequently asked questions

What is a straddle on CXW?: A straddle on CXW is the straddle strategy applied to CXW (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 CXW stock at $32.53 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CXW chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CXW 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 CXW straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 41.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$334.97 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CXW straddle?: The breakeven for the CXW straddle priced on this page is roughly $29.63 and $36.38 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 CXW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on CXW?: Straddles on CXW are pure-volatility plays that profit from large moves in either direction; traders typically buy CXW 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 CXW implied volatility affect this straddle?: CXW ATM IV is at 41.90% with IV rank near 18.38%, 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.