GOSS Straddle Strategy
GOSS (Gossamer Bio, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Gossamer Bio, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, acquiring, developing, and commercializing therapeutics in the disease areas of immunology, inflammation, and oncology in the United States. The company is developing GB002, an inhaled, small molecule, platelet-derived growth factor receptor, or PDGFR, colonystimulating factor 1 receptor, or CSF1R, and c-KIT inhibitor for the treatment of pulmonary arterial hypertension; GB004, a gut-targeted, oral small molecule for the treatment of inflammatory bowel disease; GB5121, an oral, irreversible, covalent, small molecule inhibitor of Bruton's Tyrosine Kinase for the treatment of primary central nervous system lymphoma; and GB7208, an oral, small molecule, BTK inhibitor for the treatment of multiple sclerosis. It has license agreements with Pulmokine, Inc. to develop and commercialize GB002 and related backup compounds; and Aerpio Pharmaceuticals, Inc. to develop and commercialize GB004 and related compounds. The company was formerly known as FSG, Bio, Inc. and changed its name to Gossamer Bio, Inc. in 2017. Gossamer Bio, Inc. was incorporated in 2015 and is headquartered in San Diego, California.
GOSS (Gossamer Bio, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $80.6M, a beta of 2.15 versus the broader market, a 52-week range of 0.314-3.87, average daily share volume of 16.3M, a public-listing history dating back to 2019, approximately 144 full-time employees. These structural characteristics shape how GOSS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.15 indicates GOSS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a straddle on GOSS?
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 GOSS snapshot
As of May 15, 2026, spot at $0.33, ATM IV 24.70%, IV rank 2.99%, expected move 7.08%. The straddle on GOSS 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 34-day expiry.
Why this straddle structure on GOSS specifically: GOSS IV at 24.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a GOSS straddle, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $0.02 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GOSS expiries trade a higher absolute premium for lower per-day decay. Position sizing on GOSS should anchor to the underlying notional of $0.33 per share and to the trader's directional view on GOSS stock.
GOSS straddle setup
The GOSS 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 GOSS near $0.33, the first option leg uses a $0.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GOSS chain at a 34-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 GOSS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.33 | N/A |
| Buy 1 | Put | $0.33 | N/A |
GOSS 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.
GOSS straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on GOSS. 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 GOSS
Straddles on GOSS are pure-volatility plays that profit from large moves in either direction; traders typically buy GOSS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
GOSS thesis for this straddle
The market-implied 1-standard-deviation range for GOSS extends from approximately $0.31 on the downside to $0.35 on the upside. A GOSS 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 GOSS IV rank near 2.99% 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 GOSS at 24.70%. As a Healthcare name, GOSS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GOSS-specific events.
GOSS 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. GOSS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GOSS alongside the broader basket even when GOSS-specific fundamentals are unchanged. Always rebuild the position from current GOSS chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on GOSS?
- A straddle on GOSS is the straddle strategy applied to GOSS (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 GOSS stock trading near $0.33, the strikes shown on this page are snapped to the nearest listed GOSS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GOSS 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 GOSS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), 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 GOSS straddle?
- The breakeven for the GOSS straddle priced on this page is no defined breakeven on the modeled curve 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 GOSS market-implied 1-standard-deviation expected move is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on GOSS?
- Straddles on GOSS are pure-volatility plays that profit from large moves in either direction; traders typically buy GOSS 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 GOSS implied volatility affect this straddle?
- GOSS ATM IV is at 24.70% with IV rank near 2.99%, 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.