How are FCX 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 FCX straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.07%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$643.94 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FCX straddle?

The breakeven for the FCX straddle priced on this page is roughly $60.46 and $73.54 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 FCX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FCX implied volatility affect this straddle?

FCX ATM IV is at 44.07% with IV rank near 38.01%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

FCX Straddle Strategy

FCX (Freeport-McMoRan Inc.), in the Basic Materials sector, (Copper industry), listed on NYSE.

Freeport-McMoRan Inc. is a prominent mining enterprise conducting extensive operations across North America, South America, and Indonesia. The company primarily focuses on the exploration and extraction of key mineral resources such as copper, gold, molybdenum, and silver, alongside other valuable metals. Additionally, it maintains a significant presence in the oil and gas sector. Its diverse portfolio of assets features the notable Grasberg minerals district in Indonesia; numerous sites in the United States including Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado. In South America, its holdings include Cerro Verde in Peru and El Abra in Chile. Beyond its mineral interests, Freeport-McMoRan operates a collection of oil and gas properties, predominantly situated off the coasts of California and in the Gulf of Mexico, managing approximately 135 wells as of December 31, 2021.

FCX (Freeport-McMoRan Inc.) trades in the Basic Materials sector, specifically Copper, with a market capitalization of approximately $99.52B, a trailing P/E of 33.92, a beta of 1.38 versus the broader market, a 52-week range of 35.15-72.28, average daily share volume of 14.9M, a public-listing history dating back to 1995, approximately 29K full-time employees. These structural characteristics shape how FCX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.38 indicates FCX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FCX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on FCX?

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.

FCX snapshot

As of August 14, 2026, spot at $66.56, ATM IV 44.07%, IV rank 38.01%, expected move 12.63%. The straddle on FCX 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 28-day expiry.

Why this straddle structure on FCX specifically: FCX IV at 44.07% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 12.63% (roughly $8.41 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FCX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FCX should anchor to the underlying notional of $66.56 per share and to the trader's directional view on FCX stock.

FCX straddle setup

The FCX 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 FCX at $66.56 on that close, the first option leg uses a $67.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FCX chain at a 28-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 FCX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$67.00	$3.22
Buy 1	Put	$67.00	$3.33

FCX straddle risk and reward

Net Premium / Debit: -$654.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$643.94
Breakeven(s): $60.46, $73.54
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.

FCX straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on FCX. 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%	+$6,045.00
$14.73	-77.9%	+$4,573.43
$29.44	-55.8%	+$3,101.86
$44.16	-33.7%	+$1,630.30
$58.87	-11.5%	+$158.73
$73.59	+10.6%	+$4.84
$88.30	+32.7%	+$1,476.41
$103.02	+54.8%	+$2,947.97
$117.74	+76.9%	+$4,419.54
$132.45	+99.0%	+$5,891.11

When traders use straddle on FCX

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

FCX thesis for this straddle

The market-implied 1-standard-deviation range for FCX extends from approximately $58.15 on the downside to $74.97 on the upside. A FCX 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 FCX IV rank near 38.01% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on FCX should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, FCX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FCX-specific events.

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

Frequently asked questions

What is a straddle on FCX?: A straddle on FCX is the straddle strategy applied to FCX (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 FCX stock at $66.56 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FCX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FCX 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 FCX straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.07%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$643.94 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FCX straddle?: The breakeven for the FCX straddle priced on this page is roughly $60.46 and $73.54 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 FCX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on FCX?: Straddles on FCX are pure-volatility plays that profit from large moves in either direction; traders typically buy FCX 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 FCX implied volatility affect this straddle?: FCX ATM IV is at 44.07% with IV rank near 38.01%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.