GPRK Straddle Strategy
GPRK (GeoPark Limited), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Ecuador. As of December 31, 2021, the company had working and/or economic interests in 42 hydrocarbons blocks. It had net proved reserves of 87.8 million barrels of oil equivalent. GeoPark Limited has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013. GeoPark Limited was founded in 2002 and is based in Bogotá, Colombia.
GPRK (GeoPark Limited) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $507.9M, a trailing P/E of 9.47, a beta of 0.33 versus the broader market, a 52-week range of 5.75-10.34, average daily share volume of 1.0M, a public-listing history dating back to 2010, approximately 476 full-time employees. These structural characteristics shape how GPRK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates GPRK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 9.47 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. GPRK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on GPRK?
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 GPRK snapshot
As of May 15, 2026, spot at $9.61, ATM IV 55.10%, IV rank 17.88%, expected move 15.80%. The straddle on GPRK 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 GPRK specifically: GPRK IV at 55.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a GPRK straddle, with a market-implied 1-standard-deviation move of approximately 15.80% (roughly $1.52 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 GPRK expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPRK should anchor to the underlying notional of $9.61 per share and to the trader's directional view on GPRK stock.
GPRK straddle setup
The GPRK 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 GPRK near $9.61, the first option leg uses a $9.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPRK 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 GPRK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.61 | N/A |
| Buy 1 | Put | $9.61 | N/A |
GPRK 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.
GPRK straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on GPRK. 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 GPRK
Straddles on GPRK are pure-volatility plays that profit from large moves in either direction; traders typically buy GPRK straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
GPRK thesis for this straddle
The market-implied 1-standard-deviation range for GPRK extends from approximately $8.09 on the downside to $11.13 on the upside. A GPRK 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 GPRK IV rank near 17.88% 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 GPRK at 55.10%. As a Energy name, GPRK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPRK-specific events.
GPRK 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. GPRK positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GPRK alongside the broader basket even when GPRK-specific fundamentals are unchanged. Always rebuild the position from current GPRK chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on GPRK?
- A straddle on GPRK is the straddle strategy applied to GPRK (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 GPRK stock trading near $9.61, the strikes shown on this page are snapped to the nearest listed GPRK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GPRK 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 GPRK straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 55.10%), 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 GPRK straddle?
- The breakeven for the GPRK 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 GPRK market-implied 1-standard-deviation expected move is approximately 15.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on GPRK?
- Straddles on GPRK are pure-volatility plays that profit from large moves in either direction; traders typically buy GPRK 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 GPRK implied volatility affect this straddle?
- GPRK ATM IV is at 55.10% with IV rank near 17.88%, 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.