How are FICO 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 FICO straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 50.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$10,315.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FICO straddle?

The breakeven for the FICO straddle priced on this page is roughly $1,074.55 and $1,285.45 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 FICO market-implied 1-standard-deviation expected move is approximately 14.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FICO implied volatility affect this straddle?

FICO ATM IV is at 50.40% with IV rank near 38.15%, 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.

FICO Straddle Strategy

FICO (Fair Isaac Corporation), in the Technology sector, (Software - Application industry), listed on NYSE.

Fair Isaac Corporation, also known as FICO, delivers advanced analytics, software solutions, and data management services designed to help businesses optimize, automate, and interconnect their crucial decision-making processes. These offerings reach clients across the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. The company operates through two main divisions: Software and Scores. The Software segment provides pre-configured decision management solutions catering to a variety of business challenges and operations, including marketing strategy, account creation, customer relations, engagement, fraud detection, financial crime compliance, and debt collection, alongside related professional services. Key among its offerings is the FICO Platform, a modular software suite built to support sophisticated analytical and decision-making applications. This segment also supplies stand-alone analytical and decisioning software that customers can customize for a broad spectrum of business needs.

FICO (Fair Isaac Corporation) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $27.43B, a trailing P/E of 36.79, a beta of 1.28 versus the broader market, a 52-week range of 870.01-1998.01, average daily share volume of 365K, a public-listing history dating back to 1987, approximately 4K full-time employees. These structural characteristics shape how FICO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places FICO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.79 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a straddle on FICO?

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 FICO snapshot

As of June 29, 2026, spot at $1,176.38, ATM IV 50.40%, IV rank 38.15%, expected move 14.45%. The straddle on FICO 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 17-day expiry.

Why this straddle structure on FICO specifically: FICO IV at 50.40% 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 14.45% (roughly $169.98 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FICO expiries trade a higher absolute premium for lower per-day decay. Position sizing on FICO should anchor to the underlying notional of $1,176.38 per share and to the trader's directional view on FICO stock.

FICO straddle setup

The FICO 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 FICO near $1,176.38, the first option leg uses a $1,180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FICO chain at a 17-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 FICO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$1,180.00	$61.45
Buy 1	Put	$1,180.00	$44.00

FICO straddle risk and reward

Net Premium / Debit: -$10,545.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$10,315.36
Breakeven(s): $1,074.55, $1,285.45
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.

FICO straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on FICO. 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%	+$107,454.00
$260.11	-77.9%	+$81,443.70
$520.22	-55.8%	+$55,433.40
$780.32	-33.7%	+$29,423.10
$1,040.42	-11.6%	+$3,412.79
$1,300.53	+10.6%	+$1,507.51
$1,560.63	+32.7%	+$27,517.81
$1,820.73	+54.8%	+$53,528.11
$2,080.83	+76.9%	+$79,538.41
$2,340.94	+99.0%	+$105,548.71

When traders use straddle on FICO

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

FICO thesis for this straddle

The market-implied 1-standard-deviation range for FICO extends from approximately $1,006.40 on the downside to $1,346.36 on the upside. A FICO 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 FICO IV rank near 38.15% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on FICO should anchor more to the directional view and the expected-move geometry. As a Technology name, FICO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FICO-specific events.

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

Frequently asked questions

What is a straddle on FICO?: A straddle on FICO is the straddle strategy applied to FICO (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 FICO stock trading near $1,176.38, the strikes shown on this page are snapped to the nearest listed FICO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FICO 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 FICO straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 50.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$10,315.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FICO straddle?: The breakeven for the FICO straddle priced on this page is roughly $1,074.55 and $1,285.45 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 FICO market-implied 1-standard-deviation expected move is approximately 14.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on FICO?: Straddles on FICO are pure-volatility plays that profit from large moves in either direction; traders typically buy FICO 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 FICO implied volatility affect this straddle?: FICO ATM IV is at 50.40% with IV rank near 38.15%, 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.