EVEX Straddle Strategy

EVEX (Eve Holding, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

Eve Holding, Inc. specializes in pioneering urban air mobility initiatives. The firm is actively engaged in crafting and producing electric Vertical Take-off and Landing (eVTOL) vehicles. Beyond manufacturing, Eve also furnishes a complete array of operational and maintenance support for its eVTOLs, encompassing everything from parts supply and upkeep to technical assistance, pilot and ground crew training, ground operations management, and data intelligence services. Furthermore, the company develops sophisticated air traffic management systems specifically tailored for urban environments. Eve Holding, Inc.'s operations are anchored in Melbourne, Florida.

EVEX (Eve Holding, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $947.4M, a beta of 1.15 versus the broader market, a 52-week range of 2.1-5.16, average daily share volume of 1.2M, a public-listing history dating back to 2022, approximately 198 full-time employees. These structural characteristics shape how EVEX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.15 places EVEX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on EVEX?

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.

EVEX snapshot

As of August 14, 2026, spot at $2.71, ATM IV 101.00%, IV rank 19.13%, expected move 28.96%. The straddle on EVEX below is built from the 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 EVEX specifically: EVEX IV at 101.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a EVEX straddle, with a market-implied 1-standard-deviation move of approximately 28.96% (roughly $0.78 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 EVEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on EVEX should anchor to the underlying notional of $2.71 per share and to the trader's directional view on EVEX stock.

EVEX straddle setup

The EVEX 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 EVEX at $2.71 on that close, the first option leg uses a $2.71 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EVEX 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 EVEX shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$2.71N/A
Buy 1Put$2.71N/A

EVEX 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.

EVEX straddle payoff curve

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

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

EVEX thesis for this straddle

The market-implied 1-standard-deviation range for EVEX extends from approximately $1.93 on the downside to $3.49 on the upside. A EVEX 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 EVEX IV rank near 19.13% 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 EVEX at 101.00%. As a Industrials name, EVEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EVEX-specific events.

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

Frequently asked questions

What is a straddle on EVEX?
A straddle on EVEX is the straddle strategy applied to EVEX (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 EVEX stock at $2.71 on the most recent close, the strikes shown on this page are snapped to the nearest listed EVEX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are EVEX 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 EVEX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 101.00%), 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 EVEX straddle?
The breakeven for the EVEX straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 EVEX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on EVEX?
Straddles on EVEX are pure-volatility plays that profit from large moves in either direction; traders typically buy EVEX 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 EVEX implied volatility affect this straddle?
EVEX ATM IV is at 101.00% with IV rank near 19.13%, 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.

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