GTX Straddle Strategy
GTX (Garrett Motion Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Garrett Motion Inc., together with its global subsidiaries, specializes in the development, production, and sale of advanced turbocharging and electric-boosting systems. These innovative technologies are supplied to original equipment manufacturers (OEMs) for use in light passenger and commercial vehicles worldwide. The company's product lineup includes turbochargers for gasoline and diesel light vehicles, robust turbochargers for commercial applications, and a suite of automotive software solutions. Furthermore, Garrett Motion distributes its products to the aftermarket through an extensive network of distributors. Established in 2018, the company's corporate headquarters are situated in Rolle, Switzerland.
GTX (Garrett Motion Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $5.47B, a trailing P/E of 15.39, a beta of 0.82 versus the broader market, a 52-week range of 12.264-36.25, average daily share volume of 2.7M, a public-listing history dating back to 2018, approximately 6K full-time employees. These structural characteristics shape how GTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places GTX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GTX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on GTX?
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.
GTX snapshot
As of August 14, 2026, spot at $29.09, ATM IV 40.90%, IV rank 4.54%, expected move 11.73%. The straddle on GTX below is built from the August 14, 2026 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 GTX specifically: GTX IV at 40.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a GTX straddle, with a market-implied 1-standard-deviation move of approximately 11.73% (roughly $3.41 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 GTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on GTX should anchor to the underlying notional of $29.09 per share and to the trader's directional view on GTX stock.
GTX straddle setup
The GTX straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GTX at $29.09 on that close, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GTX 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 GTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $29.00 | $1.50 |
| Buy 1 | Put | $29.00 | $1.03 |
GTX straddle risk and reward
- Net Premium / Debit
- -$252.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$247.38
- Breakeven(s)
- $26.48, $31.53
- Risk / Reward Ratio
- Unbounded
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.
GTX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on GTX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$2,646.50 |
| $6.44 | -77.9% | +$2,003.41 |
| $12.87 | -55.8% | +$1,360.33 |
| $19.30 | -33.6% | +$717.24 |
| $25.73 | -11.5% | +$74.16 |
| $32.16 | +10.6% | +$63.93 |
| $38.60 | +32.7% | +$707.01 |
| $45.03 | +54.8% | +$1,350.10 |
| $51.46 | +76.9% | +$1,993.18 |
| $57.89 | +99.0% | +$2,636.27 |
When traders use straddle on GTX
Straddles on GTX are pure-volatility plays that profit from large moves in either direction; traders typically buy GTX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
GTX thesis for this straddle
The market-implied 1-standard-deviation range for GTX extends from approximately $25.68 on the downside to $32.50 on the upside. A GTX 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 GTX IV rank near 4.54% 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 GTX at 40.90%. As a Consumer Cyclical name, GTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GTX-specific events.
GTX 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. GTX positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GTX alongside the broader basket even when GTX-specific fundamentals are unchanged. Always rebuild the position from current GTX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on GTX?
- A straddle on GTX is the straddle strategy applied to GTX (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 GTX stock at $29.09 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed GTX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GTX 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 GTX straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$247.38 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GTX straddle?
- The breakeven for the GTX straddle priced on this page is roughly $26.48 and $31.53 at expiration, derived from the August 14, 2026 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 GTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on GTX?
- Straddles on GTX are pure-volatility plays that profit from large moves in either direction; traders typically buy GTX 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 GTX implied volatility affect this straddle?
- GTX ATM IV is at 40.90% with IV rank near 4.54%, 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.