How are GXO 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 GXO straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 37.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$304.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GXO straddle?

The breakeven for the GXO straddle priced on this page is roughly $46.73 and $53.28 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 GXO market-implied 1-standard-deviation expected move is approximately 10.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GXO implied volatility affect this straddle?

GXO ATM IV is at 37.10% with IV rank near 18.96%, 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.

GXO Straddle Strategy

GXO (GXO Logistics, Inc.), in the Industrials sector, (Integrated Freight & Logistics industry), listed on NYSE.

GXO Logistics, Inc., together with its associated entities, delivers a full range of logistics solutions globally. The company's services include warehousing, distribution, order fulfillment, specialized e-commerce support, and various other supply chain management functions, alongside critical reverse logistics and returns processing. As of December 31, 2021, GXO operated across approximately 906 facilities worldwide. Its diverse customer base spans industries such as e-commerce, omnichannel retail, consumer technology, food and beverage, industrial and manufacturing, and consumer packaged goods. Founded in 2021, GXO Logistics, Inc. maintains its headquarters in Greenwich, Connecticut.

GXO (GXO Logistics, Inc.) trades in the Industrials sector, specifically Integrated Freight & Logistics, with a market capitalization of approximately $5.77B, a trailing P/E of 43.62, a beta of 1.62 versus the broader market, a 52-week range of 45.4-66.85, average daily share volume of 1.4M, a public-listing history dating back to 2021, approximately 150K full-time employees. These structural characteristics shape how GXO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.62 indicates GXO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 43.62 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a straddle on GXO?

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 GXO snapshot

As of June 30, 2026, spot at $50.48, ATM IV 37.10%, IV rank 18.96%, expected move 10.64%. The straddle on GXO 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 17-day expiry.

Why this straddle structure on GXO specifically: GXO IV at 37.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a GXO straddle, with a market-implied 1-standard-deviation move of approximately 10.64% (roughly $5.37 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GXO expiries trade a higher absolute premium for lower per-day decay. Position sizing on GXO should anchor to the underlying notional of $50.48 per share and to the trader's directional view on GXO stock.

GXO straddle setup

The GXO 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 GXO near $50.48, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GXO chain at a 17-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 GXO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$50.00	$1.93
Buy 1	Put	$50.00	$1.35

GXO straddle risk and reward

Net Premium / Debit: -$327.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$304.36
Breakeven(s): $46.73, $53.28
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.

GXO straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on GXO. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$4,671.50
$11.17	-77.9%	+$3,555.47
$22.33	-55.8%	+$2,439.44
$33.49	-33.7%	+$1,323.41
$44.65	-11.5%	+$207.38
$55.81	+10.6%	+$253.65
$66.97	+32.7%	+$1,369.68
$78.13	+54.8%	+$2,485.71
$89.29	+76.9%	+$3,601.74
$100.45	+99.0%	+$4,717.77

When traders use straddle on GXO

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

GXO thesis for this straddle

The market-implied 1-standard-deviation range for GXO extends from approximately $45.11 on the downside to $55.85 on the upside. A GXO 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 GXO IV rank near 18.96% 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 GXO at 37.10%. As a Industrials name, GXO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GXO-specific events.

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

Frequently asked questions

What is a straddle on GXO?: A straddle on GXO is the straddle strategy applied to GXO (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 GXO stock trading near $50.48, the strikes shown on this page are snapped to the nearest listed GXO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GXO 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 GXO straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 37.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$304.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GXO straddle?: The breakeven for the GXO straddle priced on this page is roughly $46.73 and $53.28 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 GXO market-implied 1-standard-deviation expected move is approximately 10.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on GXO?: Straddles on GXO are pure-volatility plays that profit from large moves in either direction; traders typically buy GXO 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 GXO implied volatility affect this straddle?: GXO ATM IV is at 37.10% with IV rank near 18.96%, 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.