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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$167.32 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 $9.33 and $12.68 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 DXC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.03%; 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 59.40% with IV rank near 7.06%, 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, along with its affiliated entities, delivers a comprehensive suite of IT solutions and services across various global regions, with a significant presence in North America, Europe, Asia, and Australia. The company structures its operations into two primary divisions: Global Business Services (GBS) and Global Infrastructure Services (GIS). Within its GBS segment, DXC offers a range of analytics offerings, supported by an extensive partner ecosystem, empowering clients to quickly gain insights, automate operational processes, and accelerate their digital transformation initiatives. This segment also provides expertise in software engineering, strategic consulting, and data analytics to help businesses manage vital operations, modernize practices, and innovate their business models. Furthermore, GBS leverages diverse technologies and approaches to expedite the development, updating, deployment, and upkeep of secure applications, thereby enabling quicker innovation, minimized risk, faster market entry, and lower overall cost. Additionally, this division provides business process services, including the unification and enhancement of both client-facing and internal operations, along with agile process automation.

DXC (DXC Technology Company) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $1.73B, a trailing P/E of 14.03, a beta of 0.80 versus the broader market, a 52-week range of 7.9-15.68, average daily share volume of 5.0M, a public-listing history dating back to 1981, approximately 115K 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 0.80 places DXC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DXC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

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.

DXC snapshot

As of August 14, 2026, spot at $10.83, ATM IV 59.40%, IV rank 7.06%, expected move 17.03%. The straddle on DXC 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 DXC specifically: DXC IV at 59.40% 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 17.03% (roughly $1.84 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 DXC expiries trade a higher absolute premium for lower per-day decay. Position sizing on DXC should anchor to the underlying notional of $10.83 per share and to the trader's directional view on DXC stock.

DXC straddle setup

The DXC 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 DXC at $10.83 on that close, the first option leg uses a $11.00 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 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 DXC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$11.00	$0.95
Buy 1	Put	$11.00	$0.73

DXC straddle risk and reward

Net Premium / Debit: -$167.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$167.32
Breakeven(s): $9.33, $12.68
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.

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	-99.9%	+$931.50
$2.40	-77.8%	+$692.15
$4.80	-55.7%	+$452.81
$7.19	-33.6%	+$213.46
$9.58	-11.5%	-$25.89
$11.98	+10.6%	-$69.77
$14.37	+32.7%	+$169.58
$16.76	+54.8%	+$408.93
$19.16	+76.9%	+$648.27
$21.55	+99.0%	+$887.62

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 $8.99 on the downside to $12.67 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 7.06% 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 59.40%. 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 at $10.83 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DXC chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$167.32 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 $9.33 and $12.68 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 DXC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.03%; 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 59.40% with IV rank near 7.06%, 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.