DRTS Straddle Strategy
DRTS (Alpha Tau Medical Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, and breast cancers; and preclinical studies for hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.
DRTS (Alpha Tau Medical Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $848.4M, a beta of 1.12 versus the broader market, a 52-week range of 2.78-10.8, average daily share volume of 411K, a public-listing history dating back to 2021, approximately 125 full-time employees. These structural characteristics shape how DRTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places DRTS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on DRTS?
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.
Current DRTS snapshot
As of May 15, 2026, spot at $10.34, ATM IV 97.00%, IV rank 15.90%, expected move 27.81%. The straddle on DRTS below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this straddle structure on DRTS specifically: DRTS IV at 97.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a DRTS straddle, with a market-implied 1-standard-deviation move of approximately 27.81% (roughly $2.88 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DRTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on DRTS should anchor to the underlying notional of $10.34 per share and to the trader's directional view on DRTS stock.
DRTS straddle setup
The DRTS 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 DRTS near $10.34, the first option leg uses a $10.34 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DRTS chain at a 34-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 DRTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.34 | N/A |
| Buy 1 | Put | $10.34 | N/A |
DRTS 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.
DRTS straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on DRTS. 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 DRTS
Straddles on DRTS are pure-volatility plays that profit from large moves in either direction; traders typically buy DRTS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
DRTS thesis for this straddle
The market-implied 1-standard-deviation range for DRTS extends from approximately $7.46 on the downside to $13.22 on the upside. A DRTS 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 DRTS IV rank near 15.90% 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 DRTS at 97.00%. As a Healthcare name, DRTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DRTS-specific events.
DRTS 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. DRTS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DRTS alongside the broader basket even when DRTS-specific fundamentals are unchanged. Always rebuild the position from current DRTS chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on DRTS?
- A straddle on DRTS is the straddle strategy applied to DRTS (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 DRTS stock trading near $10.34, the strikes shown on this page are snapped to the nearest listed DRTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DRTS 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 DRTS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 97.00%), 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 DRTS straddle?
- The breakeven for the DRTS straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current DRTS market-implied 1-standard-deviation expected move is approximately 27.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on DRTS?
- Straddles on DRTS are pure-volatility plays that profit from large moves in either direction; traders typically buy DRTS 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 DRTS implied volatility affect this straddle?
- DRTS ATM IV is at 97.00% with IV rank near 15.90%, 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.