How are FDS 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 FDS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 47.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,409.25 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FDS straddle?

The breakeven for the FDS straddle priced on this page is roughly $185.15 and $234.85 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 FDS market-implied 1-standard-deviation expected move is approximately 13.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FDS implied volatility affect this straddle?

FDS ATM IV is at 47.20% with IV rank near 57.04%, 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.

FDS Straddle Strategy

FDS (FactSet Research Systems Inc.), in the Financial Services sector, (Financial - Data & Stock Exchanges industry), listed on NYSE.

FactSet Research Systems Inc., a financial data and analytics company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.

FDS (FactSet Research Systems Inc.) trades in the Financial Services sector, specifically Financial - Data & Stock Exchanges, with a market capitalization of approximately $7.35B, a trailing P/E of 12.68, a beta of 0.69 versus the broader market, a 52-week range of 185-474.79, average daily share volume of 984K, a public-listing history dating back to 1996, approximately 13K full-time employees. These structural characteristics shape how FDS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.69 indicates FDS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FDS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on FDS?

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 FDS snapshot

As of May 15, 2026, spot at $212.44, ATM IV 47.20%, IV rank 57.04%, expected move 13.53%. The straddle on FDS 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 34-day expiry.

Why this straddle structure on FDS specifically: FDS IV at 47.20% 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 13.53% (roughly $28.75 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDS expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDS should anchor to the underlying notional of $212.44 per share and to the trader's directional view on FDS stock.

FDS straddle setup

The FDS 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 FDS near $212.44, the first option leg uses a $210.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDS chain at a 34-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 FDS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$210.00	$13.40
Buy 1	Put	$210.00	$11.45

FDS straddle risk and reward

Net Premium / Debit: -$2,485.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,409.25
Breakeven(s): $185.15, $234.85
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.

FDS straddle payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$18,514.00
$46.98	-77.9%	+$13,816.94
$93.95	-55.8%	+$9,119.89
$140.92	-33.7%	+$4,422.83
$187.89	-11.6%	-$274.22
$234.86	+10.6%	+$1.28
$281.83	+32.7%	+$4,698.33
$328.80	+54.8%	+$9,395.39
$375.77	+76.9%	+$14,092.44
$422.74	+99.0%	+$18,789.50

When traders use straddle on FDS

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

FDS thesis for this straddle

The market-implied 1-standard-deviation range for FDS extends from approximately $183.69 on the downside to $241.19 on the upside. A FDS 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 FDS IV rank near 57.04% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on FDS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FDS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDS-specific events.

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

Frequently asked questions

What is a straddle on FDS?: A straddle on FDS is the straddle strategy applied to FDS (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 FDS stock trading near $212.44, the strikes shown on this page are snapped to the nearest listed FDS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FDS 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 FDS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 47.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,409.25 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FDS straddle?: The breakeven for the FDS straddle priced on this page is roughly $185.15 and $234.85 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 FDS market-implied 1-standard-deviation expected move is approximately 13.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on FDS?: Straddles on FDS are pure-volatility plays that profit from large moves in either direction; traders typically buy FDS 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 FDS implied volatility affect this straddle?: FDS ATM IV is at 47.20% with IV rank near 57.04%, 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.