EVH Straddle Strategy
EVH (Evolent Health, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.
Evolent Health, Inc., a healthcare company, through its subsidiary, Evolent Health LLC, provides clinical and administrative solutions to payers and providers in the United States. It operates in two segments, Evolent Health Services and Clinical Solutions. The Evolent Health Services segment provides an integrated administrative and clinical platform for health plan administration and population health management. It offers financial and administrative management services, such as health plan services, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients, population health performance that delivers patient-centric cost-effective care. The Clinical Solutions segment offers specialty care management services support a range of specialty care delivery stakeholders during their transition from fee-for-service to value-based care, independent of their stage of maturation and specific market dynamics in oncology and cardiology; and holistic total cost of care improvement. The company was founded in 2011 and is headquartered in Arlington, Virginia.
EVH (Evolent Health, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $464.5M, a beta of 0.84 versus the broader market, a 52-week range of 2.095-12.065, average daily share volume of 3.1M, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how EVH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.84 places EVH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on EVH?
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 EVH snapshot
As of May 15, 2026, spot at $3.99, ATM IV 22.40%, IV rank 0.72%, expected move 6.42%. The straddle on EVH 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 245-day expiry.
Why this straddle structure on EVH specifically: EVH IV at 22.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a EVH straddle, with a market-implied 1-standard-deviation move of approximately 6.42% (roughly $0.26 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EVH expiries trade a higher absolute premium for lower per-day decay. Position sizing on EVH should anchor to the underlying notional of $3.99 per share and to the trader's directional view on EVH stock.
EVH straddle setup
The EVH 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 EVH near $3.99, the first option leg uses a $3.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EVH chain at a 245-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 EVH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.99 | N/A |
| Buy 1 | Put | $3.99 | N/A |
EVH 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.
EVH straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on EVH. 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 EVH
Straddles on EVH are pure-volatility plays that profit from large moves in either direction; traders typically buy EVH straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
EVH thesis for this straddle
The market-implied 1-standard-deviation range for EVH extends from approximately $3.73 on the downside to $4.25 on the upside. A EVH 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 EVH IV rank near 0.72% 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 EVH at 22.40%. As a Healthcare name, EVH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EVH-specific events.
EVH 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. EVH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EVH alongside the broader basket even when EVH-specific fundamentals are unchanged. Always rebuild the position from current EVH chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on EVH?
- A straddle on EVH is the straddle strategy applied to EVH (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 EVH stock trading near $3.99, the strikes shown on this page are snapped to the nearest listed EVH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EVH 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 EVH straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 22.40%), 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 EVH straddle?
- The breakeven for the EVH 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 EVH market-implied 1-standard-deviation expected move is approximately 6.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on EVH?
- Straddles on EVH are pure-volatility plays that profit from large moves in either direction; traders typically buy EVH 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 EVH implied volatility affect this straddle?
- EVH ATM IV is at 22.40% with IV rank near 0.72%, 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.