HCAT Straddle Strategy
HCAT (Health Catalyst, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
Health Catalyst, Inc. equips healthcare providers with crucial data and analytical technologies, alongside specialized services. Their extensive product line features a robust, enterprise-level data and analytics platform designed specifically for the healthcare sector. They additionally offer advanced artificial intelligence (AI) and data science solutions that integrate AI seamlessly into existing business intelligence tools, thereby enhancing analytical precision. The company's services also cover population health management, which identifies areas for improvement throughout the patient care journey, offering actionable recommendations and automated processes. For financial effectiveness, they provide critical insights into cost analysis, workforce efficiency, and revenue maximization. Moreover, Health Catalyst contributes to improving quality and safety by leveraging clinical and patient safety data, sophisticated analytics, and expert consulting.
HCAT (Health Catalyst, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $136.7M, a beta of 1.56 versus the broader market, a 52-week range of 0.955-3.8, average daily share volume of 1.3M, a public-listing history dating back to 2019, approximately 1K full-time employees. These structural characteristics shape how HCAT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.56 indicates HCAT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a straddle on HCAT?
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.
HCAT snapshot
As of August 14, 2026, spot at $1.85, ATM IV 172.00%, IV rank 63.92%, expected move 49.31%. The straddle on HCAT below is built from the 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 HCAT specifically: HCAT IV at 172.00% 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 49.31% (roughly $0.91 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 HCAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on HCAT should anchor to the underlying notional of $1.85 per share and to the trader's directional view on HCAT stock.
HCAT straddle setup
The HCAT 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 HCAT at $1.85 on that close, the first option leg uses a $1.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HCAT 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 HCAT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.85 | N/A |
| Buy 1 | Put | $1.85 | N/A |
HCAT 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.
HCAT straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on HCAT. 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 HCAT
Straddles on HCAT are pure-volatility plays that profit from large moves in either direction; traders typically buy HCAT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
HCAT thesis for this straddle
The market-implied 1-standard-deviation range for HCAT extends from approximately $0.94 on the downside to $2.76 on the upside. A HCAT 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 HCAT IV rank near 63.92% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on HCAT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, HCAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HCAT-specific events.
HCAT 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. HCAT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HCAT alongside the broader basket even when HCAT-specific fundamentals are unchanged. Always rebuild the position from current HCAT chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on HCAT?
- A straddle on HCAT is the straddle strategy applied to HCAT (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 HCAT stock at $1.85 on the most recent close, the strikes shown on this page are snapped to the nearest listed HCAT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are HCAT 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 HCAT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 172.00%), 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 HCAT straddle?
- The breakeven for the HCAT straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 HCAT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 49.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on HCAT?
- Straddles on HCAT are pure-volatility plays that profit from large moves in either direction; traders typically buy HCAT 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 HCAT implied volatility affect this straddle?
- HCAT ATM IV is at 172.00% with IV rank near 63.92%, 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.