How are DXC 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 DXC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 64.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$146.09 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DXC straddle?

The breakeven for the DXC straddle priced on this page is roughly $7.50 and $10.50 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 DXC market-implied 1-standard-deviation expected move is approximately 18.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DXC implied volatility affect this straddle?

DXC ATM IV is at 64.50% with IV rank near 10.36%, 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.

DXC Straddle Strategy

DXC (DXC Technology Company), in the Technology sector, (Information Technology Services industry), listed on NYSE.

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain rapid insights, automate operations, and accelerate their digital transformation journeys; and software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. It also uses various technologies and methods to accelerate the creation, modernization, delivery, and maintenance of secure applications allowing customers to innovate faster while reducing risk, time to market, and total cost of ownership. In addition, this segment offers business process services, which include integration and optimization of front and back office processes, and agile process automation. The GIS segment adapts legacy apps to cloud, migrate the right workloads, and securely manage their multi-cloud environments; and offers security solutions help predict attacks, proactively respond to threats, and ensure compliance, as well as to protect data, applications, and infrastructure.

DXC (DXC Technology Company) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $1.34B, a trailing P/E of 79.93, a beta of 0.85 versus the broader market, a 52-week range of 7.9-16.45, average daily share volume of 3.3M, a public-listing history dating back to 1981, approximately 130K full-time employees. These structural characteristics shape how DXC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places DXC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 79.93 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 DXC?

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 DXC snapshot

As of May 15, 2026, spot at $8.90, ATM IV 64.50%, IV rank 10.36%, expected move 18.49%. The straddle on DXC 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 DXC specifically: DXC IV at 64.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a DXC straddle, with a market-implied 1-standard-deviation move of approximately 18.49% (roughly $1.65 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 DXC expiries trade a higher absolute premium for lower per-day decay. Position sizing on DXC should anchor to the underlying notional of $8.90 per share and to the trader's directional view on DXC stock.

DXC straddle setup

The DXC 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 DXC near $8.90, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DXC 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 DXC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$9.00	$0.65
Buy 1	Put	$9.00	$0.85

DXC straddle risk and reward

Net Premium / Debit: -$150.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$146.09
Breakeven(s): $7.50, $10.50
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.

DXC straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on DXC. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$749.00
$1.98	-77.8%	+$552.33
$3.94	-55.7%	+$355.65
$5.91	-33.6%	+$158.98
$7.88	-11.5%	-$37.69
$9.84	+10.6%	-$65.63
$11.81	+32.7%	+$131.04
$13.78	+54.8%	+$327.71
$15.74	+76.9%	+$524.39
$17.71	+99.0%	+$721.06

When traders use straddle on DXC

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

DXC thesis for this straddle

The market-implied 1-standard-deviation range for DXC extends from approximately $7.25 on the downside to $10.55 on the upside. A DXC 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 DXC IV rank near 10.36% 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 DXC at 64.50%. As a Technology name, DXC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DXC-specific events.

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

Frequently asked questions

What is a straddle on DXC?: A straddle on DXC is the straddle strategy applied to DXC (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 DXC stock trading near $8.90, the strikes shown on this page are snapped to the nearest listed DXC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DXC 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 DXC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 64.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$146.09 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DXC straddle?: The breakeven for the DXC straddle priced on this page is roughly $7.50 and $10.50 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 DXC market-implied 1-standard-deviation expected move is approximately 18.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on DXC?: Straddles on DXC are pure-volatility plays that profit from large moves in either direction; traders typically buy DXC 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 DXC implied volatility affect this straddle?: DXC ATM IV is at 64.50% with IV rank near 10.36%, 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.