HOPE Straddle Strategy
HOPE (Hope Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Hope Bancorp, Inc., established in 2000 and headquartered in Los Angeles, California, functions as the parent entity for Bank of Hope. Through its subsidiary, Bank of Hope, it delivers a comprehensive suite of banking solutions to both individuals and small to medium-sized enterprises across the United States. Customers have access to a wide array of deposit accounts, encompassing personal and business checking, money market accounts, savings accounts, certificate of deposits, and individual retirement accounts. The institution's lending portfolio is extensive, covering various financial needs. For businesses, it offers commercial loans tailored for purposes such as working capital, inventory purchases, debt consolidation, business acquisitions, and other operational financing requirements. Furthermore, it provides real estate loans, Small Business Administration (SBA) loans, and a range of consumer credit products such as single-family mortgages, home equity lines, auto loans, credit cards, and personal loans.
HOPE (Hope Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.74B, a trailing P/E of 26.12, a beta of 0.83 versus the broader market, a 52-week range of 9.44-13.65, average daily share volume of 1.0M, a public-listing history dating back to 1998, approximately 1K full-time employees. These structural characteristics shape how HOPE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places HOPE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HOPE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on HOPE?
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 HOPE snapshot
As of June 30, 2026, spot at $13.66, ATM IV 110.40%, IV rank 24.03%, expected move 31.65%. The straddle on HOPE 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 HOPE specifically: HOPE IV at 110.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a HOPE straddle, with a market-implied 1-standard-deviation move of approximately 31.65% (roughly $4.32 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 HOPE expiries trade a higher absolute premium for lower per-day decay. Position sizing on HOPE should anchor to the underlying notional of $13.66 per share and to the trader's directional view on HOPE stock.
HOPE straddle setup
The HOPE 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 HOPE near $13.66, the first option leg uses a $13.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HOPE 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 HOPE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.66 | N/A |
| Buy 1 | Put | $13.66 | N/A |
HOPE 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.
HOPE straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on HOPE. 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 HOPE
Straddles on HOPE are pure-volatility plays that profit from large moves in either direction; traders typically buy HOPE straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
HOPE thesis for this straddle
The market-implied 1-standard-deviation range for HOPE extends from approximately $9.34 on the downside to $17.98 on the upside. A HOPE 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 HOPE IV rank near 24.03% 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 HOPE at 110.40%. As a Financial Services name, HOPE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HOPE-specific events.
HOPE 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. HOPE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HOPE alongside the broader basket even when HOPE-specific fundamentals are unchanged. Always rebuild the position from current HOPE chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on HOPE?
- A straddle on HOPE is the straddle strategy applied to HOPE (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 HOPE stock trading near $13.66, the strikes shown on this page are snapped to the nearest listed HOPE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HOPE 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 HOPE straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 110.40%), 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 HOPE straddle?
- The breakeven for the HOPE straddle priced on this page is no defined breakeven on the modeled curve 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 HOPE market-implied 1-standard-deviation expected move is approximately 31.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on HOPE?
- Straddles on HOPE are pure-volatility plays that profit from large moves in either direction; traders typically buy HOPE 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 HOPE implied volatility affect this straddle?
- HOPE ATM IV is at 110.40% with IV rank near 24.03%, 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.