How are FDX 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 FDX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 31.38%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,599.06 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FDX straddle?

The breakeven for the FDX straddle priced on this page is roughly $348.13 and $401.88 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 FDX market-implied 1-standard-deviation expected move is approximately 9.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FDX implied volatility affect this straddle?

FDX ATM IV is at 31.38% with IV rank near 40.95%, 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.

FDX Straddle Strategy

FDX (FedEx Corporation), in the Industrials sector, (Integrated Freight & Logistics industry), listed on NYSE.

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company's FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; time-critical transportation services; and cross-border enablement, technology, and e-commerce transportation solutions. Its FedEx Ground segment provides day-certain delivery services to businesses and residences. The company's FedEx Freight segment offers less-than-truckload freight transportation services. As of May 31, 2022, this segment had approximately 30,000 vehicles and 400 service centers. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services.

FDX (FedEx Corporation) trades in the Industrials sector, specifically Integrated Freight & Logistics, with a market capitalization of approximately $88.21B, a trailing P/E of 20.04, a beta of 1.30 versus the broader market, a 52-week range of 214.35-404.03, average daily share volume of 1.8M, a public-listing history dating back to 1978, approximately 306K full-time employees. These structural characteristics shape how FDX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.30 indicates FDX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FDX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on FDX?

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 FDX snapshot

As of May 15, 2026, spot at $376.00, ATM IV 31.38%, IV rank 40.95%, expected move 9.00%. The straddle on FDX 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 28-day expiry.

Why this straddle structure on FDX specifically: FDX IV at 31.38% 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 9.00% (roughly $33.82 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 FDX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDX should anchor to the underlying notional of $376.00 per share and to the trader's directional view on FDX stock.

FDX straddle setup

The FDX 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 FDX near $376.00, the first option leg uses a $375.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDX 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 FDX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$375.00	$14.15
Buy 1	Put	$375.00	$12.73

FDX straddle risk and reward

Net Premium / Debit: -$2,687.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,599.06
Breakeven(s): $348.13, $401.88
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.

FDX straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on FDX. 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%	+$34,811.50
$83.14	-77.9%	+$26,498.04
$166.28	-55.8%	+$18,184.59
$249.41	-33.7%	+$9,871.13
$332.55	-11.6%	+$1,557.67
$415.68	+10.6%	+$1,380.79
$498.82	+32.7%	+$9,694.24
$581.95	+54.8%	+$18,007.70
$665.09	+76.9%	+$26,321.16
$748.22	+99.0%	+$34,634.62

When traders use straddle on FDX

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

FDX thesis for this straddle

The market-implied 1-standard-deviation range for FDX extends from approximately $342.18 on the downside to $409.82 on the upside. A FDX 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 FDX IV rank near 40.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on FDX should anchor more to the directional view and the expected-move geometry. As a Industrials name, FDX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDX-specific events.

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

Frequently asked questions

What is a straddle on FDX?: A straddle on FDX is the straddle strategy applied to FDX (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 FDX stock trading near $376.00, the strikes shown on this page are snapped to the nearest listed FDX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FDX 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 FDX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 31.38%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,599.06 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FDX straddle?: The breakeven for the FDX straddle priced on this page is roughly $348.13 and $401.88 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 FDX market-implied 1-standard-deviation expected move is approximately 9.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on FDX?: Straddles on FDX are pure-volatility plays that profit from large moves in either direction; traders typically buy FDX 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 FDX implied volatility affect this straddle?: FDX ATM IV is at 31.38% with IV rank near 40.95%, 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.