GTIM Straddle Strategy
GTIM (Good Times Restaurants Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
Good Times Restaurants Inc., through its subsidiaries, engages in the restaurant business in the United States. The company operates and franchises Good Times Burgers & Frozen Custard, an upscale quick-service drive-through dining restaurant; and owns, operates, franchises, and licenses Bad Daddy's Burger Bar, a full-service upscale casual dining restaurant. As of December 15, 2021, it operated, franchised, or licensed 42 Bad Daddy's Burger Bar restaurants; and 32 Good Times Burgers & Frozen Custard restaurants. The company was incorporated in 1987 and is based in Golden, Colorado.
GTIM (Good Times Restaurants Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $13.1M, a trailing P/E of 7.22, a beta of 0.65 versus the broader market, a 52-week range of 1.1-2.09, average daily share volume of 27K, a public-listing history dating back to 1992, approximately 2K full-time employees. These structural characteristics shape how GTIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates GTIM 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 7.22 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a straddle on GTIM?
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 GTIM snapshot
As of May 15, 2026, spot at $1.24, ATM IV 24.80%, IV rank 1.54%, expected move 7.11%. The straddle on GTIM 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 GTIM specifically: GTIM IV at 24.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a GTIM straddle, with a market-implied 1-standard-deviation move of approximately 7.11% (roughly $0.09 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 GTIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on GTIM should anchor to the underlying notional of $1.24 per share and to the trader's directional view on GTIM stock.
GTIM straddle setup
The GTIM 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 GTIM near $1.24, the first option leg uses a $1.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GTIM 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 GTIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.24 | N/A |
| Buy 1 | Put | $1.24 | N/A |
GTIM 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.
GTIM straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on GTIM. 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 GTIM
Straddles on GTIM are pure-volatility plays that profit from large moves in either direction; traders typically buy GTIM straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
GTIM thesis for this straddle
The market-implied 1-standard-deviation range for GTIM extends from approximately $1.15 on the downside to $1.33 on the upside. A GTIM 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 GTIM IV rank near 1.54% 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 GTIM at 24.80%. As a Consumer Cyclical name, GTIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GTIM-specific events.
GTIM 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. GTIM positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GTIM alongside the broader basket even when GTIM-specific fundamentals are unchanged. Always rebuild the position from current GTIM chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on GTIM?
- A straddle on GTIM is the straddle strategy applied to GTIM (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 GTIM stock trading near $1.24, the strikes shown on this page are snapped to the nearest listed GTIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GTIM 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 GTIM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 24.80%), 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 GTIM straddle?
- The breakeven for the GTIM 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 GTIM market-implied 1-standard-deviation expected move is approximately 7.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on GTIM?
- Straddles on GTIM are pure-volatility plays that profit from large moves in either direction; traders typically buy GTIM 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 GTIM implied volatility affect this straddle?
- GTIM ATM IV is at 24.80% with IV rank near 1.54%, 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.