How are ETON 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 ETON straddle priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 58.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$520.96 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ETON straddle?

The breakeven for the ETON straddle priced on this page is roughly $59.75 and $70.25 at expiration, derived from the November 13, 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 ETON market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ETON implied volatility affect this straddle?

ETON ATM IV is at 58.90% with IV rank near 10.60%, 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.

ETON Straddle Strategy

ETON (Eton Pharmaceuticals, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

Eton Pharmaceuticals, Inc., a pharmaceutical company, focuses on developing and commercializing treatments for rare diseases. Its commercial rare disease products include Increlex for the treatment of severe primary igf-1 deficiency; Alkindi Sprinkle for adrenal insufficiency; Khindivi for adrenocortical insufficiency; Galzin for Wilson disease; PKU Golike for phenylketonuria; Carglumic Acid for N-acetylglutamate synthase deficiency; Betaine Anhydrous for homocystinuria; and Nitisinone for tyrosinemia type 1. The company is also developing various product candidates, which are in late-stage development, including ET-600 for diabetes insipidus; Amglidia for neonatal diabetes mellitus; ET-700 for Wilson disease; ET-800 for adrenal insufficiency; and ZENEO hydrocortisone autoinjector for adrenal crisis. Eton Pharmaceuticals, Inc. was incorporated in 2017 and is based in Deer Park, Illinois.

ETON (Eton Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $1.84B, a trailing P/E of 36.75, a beta of 0.83 versus the broader market, a 52-week range of 14.27-70.64, average daily share volume of 593K, a public-listing history dating back to 2018, approximately 44 full-time employees. These structural characteristics shape how ETON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.83 places ETON roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.75 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 ETON?

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.

ETON snapshot

As of November 13, 2026, spot at $63.99, ATM IV 58.90%, IV rank 10.60%, expected move 16.89%. The straddle on ETON below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this straddle structure on ETON specifically: ETON IV at 58.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a ETON straddle, with a market-implied 1-standard-deviation move of approximately 16.89% (roughly $10.81 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ETON expiries trade a higher absolute premium for lower per-day decay. Position sizing on ETON should anchor to the underlying notional of $63.99 per share and to the trader's directional view on ETON stock.

ETON straddle setup

The ETON straddle below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ETON at $63.99 on that close, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ETON chain at a 7-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 ETON shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$65.00	$2.08
Buy 1	Put	$65.00	$3.18

ETON straddle risk and reward

Net Premium / Debit: -$525.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$520.96
Breakeven(s): $59.75, $70.25
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.

ETON straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on ETON. 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%	+$5,974.00
$14.16	-77.9%	+$4,559.26
$28.30	-55.8%	+$3,144.51
$42.45	-33.7%	+$1,729.77
$56.60	-11.5%	+$315.03
$70.75	+10.6%	+$49.72
$84.89	+32.7%	+$1,464.46
$99.04	+54.8%	+$2,879.21
$113.19	+76.9%	+$4,293.95
$127.34	+99.0%	+$5,708.69

When traders use straddle on ETON

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

ETON thesis for this straddle

The market-implied 1-standard-deviation range for ETON extends from approximately $53.18 on the downside to $74.80 on the upside. A ETON 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 ETON IV rank near 10.60% 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 ETON at 58.90%. As a Healthcare name, ETON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ETON-specific events.

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

Frequently asked questions

What is a straddle on ETON?: A straddle on ETON is the straddle strategy applied to ETON (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 ETON stock at $63.99 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed ETON chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ETON 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 ETON straddle priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 58.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$520.96 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ETON straddle?: The breakeven for the ETON straddle priced on this page is roughly $59.75 and $70.25 at expiration, derived from the November 13, 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 ETON market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on ETON?: Straddles on ETON are pure-volatility plays that profit from large moves in either direction; traders typically buy ETON 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 ETON implied volatility affect this straddle?: ETON ATM IV is at 58.90% with IV rank near 10.60%, 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.