GT Straddle Strategy
GT (The Goodyear Tire & Rubber Company), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. It offers various lines of tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving equipment, and mining and industrial equipment under the Goodyear, Cooper, Dunlop, Kelly, Debica, Sava, Fulda, Mastercraft, Roadmaster, and various other house brands, as well as under the private-label brands. The company also retreads truck, aviation, and off-the-road tires; manufactures and sells tread rubber and other tire retreading materials; sells chemical and natural rubber products; and provides automotive and commercial truck maintenance and repair services, and miscellaneous other products and services. It operates approximately 1,000 retail outlets, which offer products for retail sale, and provides repair and other services. The company sells its products worldwide through a network of independent dealers, regional distributors, retail outlets, and retailers. The Goodyear Tire & Rubber Company was incorporated in 1898 and is headquartered in Akron, Ohio.
GT (The Goodyear Tire & Rubber Company) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $1.67B, a beta of 1.18 versus the broader market, a 52-week range of 5.73-12.03, average daily share volume of 8.3M, a public-listing history dating back to 1927, approximately 68K full-time employees. These structural characteristics shape how GT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places GT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on GT?
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 GT snapshot
As of May 15, 2026, spot at $5.67, ATM IV 54.00%, IV rank 10.46%, expected move 15.48%. The straddle on GT 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 GT specifically: GT IV at 54.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a GT straddle, with a market-implied 1-standard-deviation move of approximately 15.48% (roughly $0.88 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 GT expiries trade a higher absolute premium for lower per-day decay. Position sizing on GT should anchor to the underlying notional of $5.67 per share and to the trader's directional view on GT stock.
GT straddle setup
The GT 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 GT near $5.67, the first option leg uses a $5.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GT 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 GT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.67 | N/A |
| Buy 1 | Put | $5.67 | N/A |
GT 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.
GT straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on GT. 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 GT
Straddles on GT are pure-volatility plays that profit from large moves in either direction; traders typically buy GT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
GT thesis for this straddle
The market-implied 1-standard-deviation range for GT extends from approximately $4.79 on the downside to $6.55 on the upside. A GT 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 GT IV rank near 10.46% 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 GT at 54.00%. As a Consumer Cyclical name, GT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GT-specific events.
GT 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. GT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GT alongside the broader basket even when GT-specific fundamentals are unchanged. Always rebuild the position from current GT chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on GT?
- A straddle on GT is the straddle strategy applied to GT (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 GT stock trading near $5.67, the strikes shown on this page are snapped to the nearest listed GT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GT 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 GT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 54.00%), 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 GT straddle?
- The breakeven for the GT 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 GT market-implied 1-standard-deviation expected move is approximately 15.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on GT?
- Straddles on GT are pure-volatility plays that profit from large moves in either direction; traders typically buy GT 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 GT implied volatility affect this straddle?
- GT ATM IV is at 54.00% with IV rank near 10.46%, 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.