GLP Straddle Strategy
GLP (Global Partners LP), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.
Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through three segments: Wholesale, Gasoline Distribution and Station Operations (GDSO), and Commercial. The Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, and residual oil to retailers and wholesale distributors. This segment transports the products by railcars, barges, trucks and/or pipelines. The GDSO segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates convenience stores and prepared food sales; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector; and sells custom blended fuels.
GLP (Global Partners LP) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $1.73B, a trailing P/E of 10.00, a beta of 1.05 versus the broader market, a 52-week range of 39.58-53.25, average daily share volume of 87K, a public-listing history dating back to 2005, approximately 5K full-time employees. These structural characteristics shape how GLP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places GLP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.00 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. GLP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on GLP?
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.
GLP snapshot
As of August 14, 2026, spot at $50.95, ATM IV 18.60%, IV rank 2.54%, expected move 5.33%. The straddle on GLP 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 GLP specifically: GLP IV at 18.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a GLP straddle, with a market-implied 1-standard-deviation move of approximately 5.33% (roughly $2.72 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 GLP expiries trade a higher absolute premium for lower per-day decay. Position sizing on GLP should anchor to the underlying notional of $50.95 per share and to the trader's directional view on GLP stock.
GLP straddle setup
The GLP 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 GLP at $50.95 on that close, the first option leg uses a $50.95 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GLP 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 GLP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $50.95 | N/A |
| Buy 1 | Put | $50.95 | N/A |
GLP 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.
GLP straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on GLP. 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 GLP
Straddles on GLP are pure-volatility plays that profit from large moves in either direction; traders typically buy GLP straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
GLP thesis for this straddle
The market-implied 1-standard-deviation range for GLP extends from approximately $48.23 on the downside to $53.67 on the upside. A GLP 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 GLP IV rank near 2.54% 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 GLP at 18.60%. As a Energy name, GLP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GLP-specific events.
GLP 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. GLP positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GLP alongside the broader basket even when GLP-specific fundamentals are unchanged. Always rebuild the position from current GLP chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on GLP?
- A straddle on GLP is the straddle strategy applied to GLP (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 GLP stock at $50.95 on the most recent close, the strikes shown on this page are snapped to the nearest listed GLP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GLP 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 GLP straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 18.60%), 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 GLP straddle?
- The breakeven for the GLP 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 GLP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on GLP?
- Straddles on GLP are pure-volatility plays that profit from large moves in either direction; traders typically buy GLP 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 GLP implied volatility affect this straddle?
- GLP ATM IV is at 18.60% with IV rank near 2.54%, 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.