FAC Straddle Strategy
FAC (Factorial Energy Inc.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
Factorial Energy Inc. manufactures and sells solid-state batteries for the eMobility, defense, and AI/robotics markets. The company offers products, such as high-performing solid-state battery cells, and utilizes advanced manufacturing techniques, including a proprietary dry-coating process. The company was founded in 2013 and is headquartered in Billerica, Massachusetts.
FAC (Factorial Energy Inc.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $161.7M, a beta of 1.23 versus the broader market, a 52-week range of 4.24-25.33, average daily share volume of 407K, a public-listing history dating back to 2025, approximately 2 full-time employees. These structural characteristics shape how FAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places FAC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on FAC?
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.
FAC snapshot
As of August 14, 2026, spot at $5.22, ATM IV 114.70%, expected move 32.88%. The straddle on FAC 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 FAC specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FAC is inferred from ATM IV at 114.70% alone, with a market-implied 1-standard-deviation move of approximately 32.88% (roughly $1.72 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 FAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FAC should anchor to the underlying notional of $5.22 per share and to the trader's directional view on FAC stock.
FAC straddle setup
The FAC 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 FAC at $5.22 on that close, the first option leg uses a $5.22 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FAC 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 FAC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.22 | N/A |
| Buy 1 | Put | $5.22 | N/A |
FAC 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.
FAC straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on FAC. 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 FAC
Straddles on FAC are pure-volatility plays that profit from large moves in either direction; traders typically buy FAC straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
FAC thesis for this straddle
The market-implied 1-standard-deviation range for FAC extends from approximately $3.50 on the downside to $6.94 on the upside. A FAC 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. As a Industrials name, FAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FAC-specific events.
FAC 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. FAC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FAC alongside the broader basket even when FAC-specific fundamentals are unchanged. Always rebuild the position from current FAC chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on FAC?
- A straddle on FAC is the straddle strategy applied to FAC (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 FAC stock at $5.22 on the most recent close, the strikes shown on this page are snapped to the nearest listed FAC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FAC 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 FAC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 114.70%), 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 FAC straddle?
- The breakeven for the FAC 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 FAC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on FAC?
- Straddles on FAC are pure-volatility plays that profit from large moves in either direction; traders typically buy FAC 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 FAC implied volatility affect this straddle?
- Current FAC ATM IV is 114.70%; IV rank context is unavailable in the current snapshot.