How are GVA 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 GVA straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$948.61 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GVA straddle?

The breakeven for the GVA straddle priced on this page is roughly $129.85 and $150.15 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 GVA market-implied 1-standard-deviation expected move is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GVA implied volatility affect this straddle?

GVA ATM IV is at 29.70% with IV rank near 35.46%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

GVA Straddle Strategy

GVA (Granite Construction Incorporated), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.

Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States. It operates through two segments, Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public. It also focuses on water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies. The company also constructs various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar, and power projects. The Materials segment is involved in the production of aggregates and asphalt for internal use, as well as for sale to third parties.

GVA (Granite Construction Incorporated) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $6.26B, a trailing P/E of 33.68, a beta of 1.35 versus the broader market, a 52-week range of 84.45-145, average daily share volume of 617K, a public-listing history dating back to 1990, approximately 2K full-time employees. These structural characteristics shape how GVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates GVA has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. GVA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on GVA?

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 GVA snapshot

As of May 15, 2026, spot at $138.57, ATM IV 29.70%, IV rank 35.46%, expected move 8.51%. The straddle on GVA 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 GVA specifically: GVA IV at 29.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 8.51% (roughly $11.80 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 GVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on GVA should anchor to the underlying notional of $138.57 per share and to the trader's directional view on GVA stock.

GVA straddle setup

The GVA 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 GVA near $138.57, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GVA 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 GVA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$140.00	$4.30
Buy 1	Put	$140.00	$5.85

GVA straddle risk and reward

Net Premium / Debit: -$1,015.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$948.61
Breakeven(s): $129.85, $150.15
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.

GVA straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on GVA. 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%	+$12,984.00
$30.65	-77.9%	+$9,920.25
$61.28	-55.8%	+$6,856.50
$91.92	-33.7%	+$3,792.75
$122.56	-11.6%	+$729.01
$153.20	+10.6%	+$304.74
$183.83	+32.7%	+$3,368.49
$214.47	+54.8%	+$6,432.24
$245.11	+76.9%	+$9,495.99
$275.75	+99.0%	+$12,559.74

When traders use straddle on GVA

Straddles on GVA are pure-volatility plays that profit from large moves in either direction; traders typically buy GVA straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.

GVA thesis for this straddle

The market-implied 1-standard-deviation range for GVA extends from approximately $126.77 on the downside to $150.37 on the upside. A GVA 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 GVA IV rank near 35.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on GVA should anchor more to the directional view and the expected-move geometry. As a Industrials name, GVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GVA-specific events.

GVA 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. GVA positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GVA alongside the broader basket even when GVA-specific fundamentals are unchanged. Always rebuild the position from current GVA chain quotes before placing a trade.

Frequently asked questions

What is a straddle on GVA?: A straddle on GVA is the straddle strategy applied to GVA (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 GVA stock trading near $138.57, the strikes shown on this page are snapped to the nearest listed GVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GVA 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 GVA straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$948.61 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GVA straddle?: The breakeven for the GVA straddle priced on this page is roughly $129.85 and $150.15 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 GVA market-implied 1-standard-deviation expected move is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on GVA?: Straddles on GVA are pure-volatility plays that profit from large moves in either direction; traders typically buy GVA 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 GVA implied volatility affect this straddle?: GVA ATM IV is at 29.70% with IV rank near 35.46%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.