How are GE 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 GE straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.88%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,353.76 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GE straddle?

The breakeven for the GE straddle priced on this page is roughly $266.03 and $313.98 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 GE market-implied 1-standard-deviation expected move is approximately 10.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GE implied volatility affect this straddle?

GE ATM IV is at 36.88% with IV rank near 58.95%, 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.

GE Straddle Strategy

GE (GE Aerospace), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

GE Aerospace is an American aircraft company, which engages in the provision of jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. The firm's portfolio of brands includes Avio Aero, Unison, GE Additive, and Dowty Propellers. It operates through the Commercial Engines & Services and Defense & Propulsion Technologies segments. The Commercial Engines & Services segment is involved in the design, development, manufacturing, and servicing of jet engines for commercial airframes, as well as business aviation and aeroderivative applications. The Defense & Propulsion Technologies segment offers defense engines and critical aircraft systems. The company was founded by Thomas Alva Edison in 1878 and is headquartered in Evendale, OH.

GE (GE Aerospace) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $307.92B, a trailing P/E of 35.31, a beta of 1.35 versus the broader market, a 52-week range of 223.45-348.48, average daily share volume of 6.0M, a public-listing history dating back to 1962, approximately 53K full-time employees. These structural characteristics shape how GE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates GE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 35.31 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. GE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on GE?

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 GE snapshot

As of May 14, 2026, spot at $291.02, ATM IV 36.88%, IV rank 58.95%, expected move 10.57%. The straddle on GE 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 GE specifically: GE IV at 36.88% 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 10.57% (roughly $30.77 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 GE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GE should anchor to the underlying notional of $291.02 per share and to the trader's directional view on GE stock.

GE straddle setup

The GE 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 GE near $291.02, the first option leg uses a $290.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GE 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 GE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$290.00	$8.23
Buy 1	Put	$290.00	$15.75

GE straddle risk and reward

Net Premium / Debit: -$2,397.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,353.76
Breakeven(s): $266.03, $313.98
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.

GE straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on GE. 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%	+$26,601.50
$64.36	-77.9%	+$20,167.00
$128.70	-55.8%	+$13,732.49
$193.05	-33.7%	+$7,297.99
$257.39	-11.6%	+$863.49
$321.74	+10.6%	+$776.01
$386.08	+32.7%	+$7,210.52
$450.43	+54.8%	+$13,645.02
$514.77	+76.9%	+$20,079.52
$579.12	+99.0%	+$26,514.02

When traders use straddle on GE

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

GE thesis for this straddle

The market-implied 1-standard-deviation range for GE extends from approximately $260.25 on the downside to $321.79 on the upside. A GE 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 GE IV rank near 58.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on GE should anchor more to the directional view and the expected-move geometry. As a Industrials name, GE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GE-specific events.

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

Frequently asked questions

What is a straddle on GE?: A straddle on GE is the straddle strategy applied to GE (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 GE stock trading near $291.02, the strikes shown on this page are snapped to the nearest listed GE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GE 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 GE straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.88%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,353.76 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GE straddle?: The breakeven for the GE straddle priced on this page is roughly $266.03 and $313.98 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 GE market-implied 1-standard-deviation expected move is approximately 10.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on GE?: Straddles on GE are pure-volatility plays that profit from large moves in either direction; traders typically buy GE 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 GE implied volatility affect this straddle?: GE ATM IV is at 36.88% with IV rank near 58.95%, 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.