How are GEO 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 GEO straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$337.99 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GEO straddle?

The breakeven for the GEO straddle priced on this page is roughly $27.60 and $34.40 at expiration, derived from the August 14, 2026 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 GEO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GEO implied volatility affect this straddle?

GEO ATM IV is at 44.30% with IV rank near 5.09%, 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.

GEO Straddle Strategy

GEO (The GEO Group, Inc.), in the Industrials sector, (Security & Protection Services industry), listed on NYSE.

The GEO Group, Inc. is dedicated to the operation, leasing, and ownership of secure correctional centers, administrative processing hubs, and community reentry facilities situated in the United States, Australia, and South Africa. The company's operations are segmented into four main areas: U.S. Secure Services, Electronic Monitoring and Supervision Services, Reentry Services, and International Services. GEO Group provides a comprehensive suite of services. This includes offering counseling, educational programs, and treatment for alcohol and drug dependency within its various locations. It also leverages compliance technologies for monitoring services and implements empirically supported supervision and rehabilitation programs for individuals on parole, probation, or awaiting trial in a community setting.

GEO (The GEO Group, Inc.) trades in the Industrials sector, specifically Security & Protection Services, with a market capitalization of approximately $4.20B, a trailing P/E of 14.09, a beta of 0.78 versus the broader market, a 52-week range of 12.51-32.62, average daily share volume of 1.9M, a public-listing history dating back to 1994, approximately 18K full-time employees. These structural characteristics shape how GEO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.78 places GEO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GEO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on GEO?

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.

GEO snapshot

As of August 14, 2026, spot at $30.86, ATM IV 44.30%, IV rank 5.09%, expected move 12.70%. The straddle on GEO below is built from the August 14, 2026 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 GEO specifically: GEO IV at 44.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a GEO straddle, with a market-implied 1-standard-deviation move of approximately 12.70% (roughly $3.92 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 GEO expiries trade a higher absolute premium for lower per-day decay. Position sizing on GEO should anchor to the underlying notional of $30.86 per share and to the trader's directional view on GEO stock.

GEO straddle setup

The GEO straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GEO at $30.86 on that close, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GEO 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 GEO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$31.00	$1.58
Buy 1	Put	$31.00	$1.83

GEO straddle risk and reward

Net Premium / Debit: -$340.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$337.99
Breakeven(s): $27.60, $34.40
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.

GEO straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on GEO. 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%	+$2,759.00
$6.83	-77.9%	+$2,076.78
$13.65	-55.8%	+$1,394.56
$20.48	-33.6%	+$712.34
$27.30	-11.5%	+$30.12
$34.12	+10.6%	-$27.89
$40.94	+32.7%	+$654.33
$47.77	+54.8%	+$1,336.55
$54.59	+76.9%	+$2,018.77
$61.41	+99.0%	+$2,700.99

When traders use straddle on GEO

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

GEO thesis for this straddle

The market-implied 1-standard-deviation range for GEO extends from approximately $26.94 on the downside to $34.78 on the upside. A GEO 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 GEO IV rank near 5.09% 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 GEO at 44.30%. As a Industrials name, GEO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GEO-specific events.

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

Frequently asked questions

What is a straddle on GEO?: A straddle on GEO is the straddle strategy applied to GEO (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 GEO stock at $30.86 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed GEO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are GEO 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 GEO straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$337.99 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GEO straddle?: The breakeven for the GEO straddle priced on this page is roughly $27.60 and $34.40 at expiration, derived from the August 14, 2026 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 GEO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on GEO?: Straddles on GEO are pure-volatility plays that profit from large moves in either direction; traders typically buy GEO 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 GEO implied volatility affect this straddle?: GEO ATM IV is at 44.30% with IV rank near 5.09%, 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.