How are HCI 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 HCI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$945.72 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HCI straddle?

The breakeven for the HCI straddle priced on this page is roughly $164.85 and $185.15 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 HCI market-implied 1-standard-deviation expected move is approximately 9.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HCI implied volatility affect this straddle?

HCI ATM IV is at 31.90% with IV rank near 1.10%, 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.

HCI Straddle Strategy

HCI (HCI Group, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.

Headquartered in Tampa, Florida, HCI Group, Inc., originally established in 2006 as Homeowners Choice, Inc. before its name change in May 2013, is a diversified holding company. It conducts business across four main segments: property and casualty insurance, reinsurance, real estate, and information technology. Within Florida, the company underwrites residential insurance policies for homeowners, condominium owners, and tenants, offering coverage types such as homeowners, fire, flood, and wind-only, alongside reinsurance services. Its real estate portfolio encompasses ownership and management of waterfront properties, retail shopping centers, an office building, and various commercial investment properties. Additionally, HCI Group's technology division designs and builds web-based applications and mobile solutions, including its online policy administration platforms SAMS and Harmony, the end-to-end claims management system ClaimColony, and the mapping and data visualization tool AtlasViewer.

HCI (HCI Group, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $2.30B, a trailing P/E of 6.80, a beta of 1.05 versus the broader market, a 52-week range of 136.37-210.5, average daily share volume of 197K, a public-listing history dating back to 2008, approximately 552 full-time employees. These structural characteristics shape how HCI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.05 places HCI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.80 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. HCI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on HCI?

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 HCI snapshot

As of June 30, 2026, spot at $176.97, ATM IV 31.90%, IV rank 1.10%, expected move 9.15%. The straddle on HCI 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 HCI specifically: HCI IV at 31.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a HCI straddle, with a market-implied 1-standard-deviation move of approximately 9.15% (roughly $16.18 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 HCI expiries trade a higher absolute premium for lower per-day decay. Position sizing on HCI should anchor to the underlying notional of $176.97 per share and to the trader's directional view on HCI stock.

HCI straddle setup

The HCI 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 HCI near $176.97, the first option leg uses a $175.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HCI 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 HCI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$175.00	$6.10
Buy 1	Put	$175.00	$4.05

HCI straddle risk and reward

Net Premium / Debit: -$1,015.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$945.72
Breakeven(s): $164.85, $185.15
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.

HCI straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on HCI. 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%	+$16,484.00
$39.14	-77.9%	+$12,571.21
$78.27	-55.8%	+$8,658.41
$117.39	-33.7%	+$4,745.62
$156.52	-11.6%	+$832.82
$195.65	+10.6%	+$1,049.97
$234.78	+32.7%	+$4,962.76
$273.91	+54.8%	+$8,875.56
$313.03	+76.9%	+$12,788.35
$352.16	+99.0%	+$16,701.15

When traders use straddle on HCI

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

HCI thesis for this straddle

The market-implied 1-standard-deviation range for HCI extends from approximately $160.79 on the downside to $193.15 on the upside. A HCI 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 HCI IV rank near 1.10% 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 HCI at 31.90%. As a Financial Services name, HCI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HCI-specific events.

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

Frequently asked questions

What is a straddle on HCI?: A straddle on HCI is the straddle strategy applied to HCI (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 HCI stock trading near $176.97, the strikes shown on this page are snapped to the nearest listed HCI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HCI 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 HCI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$945.72 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HCI straddle?: The breakeven for the HCI straddle priced on this page is roughly $164.85 and $185.15 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 HCI market-implied 1-standard-deviation expected move is approximately 9.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on HCI?: Straddles on HCI are pure-volatility plays that profit from large moves in either direction; traders typically buy HCI 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 HCI implied volatility affect this straddle?: HCI ATM IV is at 31.90% with IV rank near 1.10%, 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.