FET Straddle Strategy
FET (Forum Energy Technologies, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Forum Energy Technologies, Inc. is a global provider that develops, produces, and distributes essential equipment and services for the oil and natural gas, industrial, and renewable energy industries, operating in both the United States and internationally. The company organizes its operations into three main segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and provides products and related services for drilling, well construction, artificial lift, and subsea energy infrastructure markets. Its applications span oil and natural gas, renewable energy, defense, and communications. Offerings in this division include capital drilling equipment and various consumables for the drilling process; well casing and cementing tools, alongside protective gear for artificial lift systems and cables; and advanced subsea technologies such as remotely operated vehicles (ROVs), trenchers, submarine rescue vehicles, specialized components, and complementary technical services. The Completions segment supplies a range of equipment for well completion and intervention services.
FET (Forum Energy Technologies, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $936.7M, a beta of 0.56 versus the broader market, a 52-week range of 22.17-84.75, average daily share volume of 177K, a public-listing history dating back to 2012, approximately 2K full-time employees. These structural characteristics shape how FET stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.56 indicates FET has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a straddle on FET?
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.
FET snapshot
As of August 14, 2026, spot at $86.13, ATM IV 44.20%, IV rank 5.55%, expected move 12.67%. The straddle on FET 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 FET specifically: FET IV at 44.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a FET straddle, with a market-implied 1-standard-deviation move of approximately 12.67% (roughly $10.91 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 FET expiries trade a higher absolute premium for lower per-day decay. Position sizing on FET should anchor to the underlying notional of $86.13 per share and to the trader's directional view on FET stock.
FET straddle setup
The FET 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 FET at $86.13 on that close, the first option leg uses a $86.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FET 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 FET shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $86.13 | N/A |
| Buy 1 | Put | $86.13 | N/A |
FET 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.
FET straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on FET. 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 FET
Straddles on FET are pure-volatility plays that profit from large moves in either direction; traders typically buy FET straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
FET thesis for this straddle
The market-implied 1-standard-deviation range for FET extends from approximately $75.22 on the downside to $97.04 on the upside. A FET 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 FET IV rank near 5.55% 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 FET at 44.20%. As a Energy name, FET options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FET-specific events.
FET 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. FET positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FET alongside the broader basket even when FET-specific fundamentals are unchanged. Always rebuild the position from current FET chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on FET?
- A straddle on FET is the straddle strategy applied to FET (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 FET stock at $86.13 on the most recent close, the strikes shown on this page are snapped to the nearest listed FET chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FET 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 FET straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 44.20%), 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 FET straddle?
- The breakeven for the FET 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 FET market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on FET?
- Straddles on FET are pure-volatility plays that profit from large moves in either direction; traders typically buy FET 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 FET implied volatility affect this straddle?
- FET ATM IV is at 44.20% with IV rank near 5.55%, 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.