How are IDCC 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 IDCC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 44.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,124.42 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IDCC straddle?

The breakeven for the IDCC straddle priced on this page is roughly $258.10 and $301.90 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 IDCC market-implied 1-standard-deviation expected move is approximately 12.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IDCC implied volatility affect this straddle?

IDCC ATM IV is at 44.50% with IV rank near 51.24%, 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.

IDCC Straddle Strategy

IDCC (InterDigital, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

InterDigital, Inc., through its affiliated companies, specializes in the design and advancement of technologies that facilitate and improve wireless communications across major global regions, including the United States, China, South Korea, Japan, Taiwan, and Europe. The company furnishes technological solutions applicable to various digital cellular and general wireless products and networks, spanning generations from 2G through 5G, as well as those based on IEEE 802 standards. Its development efforts extend to foundational cellular technologies like CDMA, TDMA, OFDM/OFDMA, and MIMO, which are integral to wireless networks from 2G to 5G and to mobile terminal devices. Additionally, InterDigital's 3GPP technology portfolio addresses emerging areas such as 5G New Radio (NR), beyond 5G (B5G), extended reality (XR) over wireless, and cellular Internet of Things (IoT). The firm also engineers technologies for a wide array of connected consumer electronics, including vehicles, wearables, smart home systems, and drones. Beyond its wireless innovations, InterDigital provides video coding and transmission solutions and actively conducts research and development in artificial intelligence.

IDCC (InterDigital, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $7.13B, a trailing P/E of 19.37, a beta of 1.43 versus the broader market, a 52-week range of 213.06-412.6, average daily share volume of 374K, a public-listing history dating back to 1981, approximately 430 full-time employees. These structural characteristics shape how IDCC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.43 indicates IDCC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. IDCC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on IDCC?

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 IDCC snapshot

As of June 30, 2026, spot at $280.75, ATM IV 44.50%, IV rank 51.24%, expected move 12.76%. The straddle on IDCC 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 IDCC specifically: IDCC IV at 44.50% 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 12.76% (roughly $35.82 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 IDCC expiries trade a higher absolute premium for lower per-day decay. Position sizing on IDCC should anchor to the underlying notional of $280.75 per share and to the trader's directional view on IDCC stock.

IDCC straddle setup

The IDCC 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 IDCC near $280.75, the first option leg uses a $280.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IDCC 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 IDCC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$280.00	$11.75
Buy 1	Put	$280.00	$10.15

IDCC straddle risk and reward

Net Premium / Debit: -$2,190.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,124.42
Breakeven(s): $258.10, $301.90
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.

IDCC straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on IDCC. 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%	+$25,809.00
$62.08	-77.9%	+$19,601.57
$124.16	-55.8%	+$13,394.15
$186.23	-33.7%	+$7,186.72
$248.31	-11.6%	+$979.29
$310.38	+10.6%	+$848.14
$372.46	+32.7%	+$7,055.56
$434.53	+54.8%	+$13,262.99
$496.60	+76.9%	+$19,470.42
$558.68	+99.0%	+$25,677.84

When traders use straddle on IDCC

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

IDCC thesis for this straddle

The market-implied 1-standard-deviation range for IDCC extends from approximately $244.93 on the downside to $316.57 on the upside. A IDCC 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 IDCC IV rank near 51.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on IDCC should anchor more to the directional view and the expected-move geometry. As a Technology name, IDCC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IDCC-specific events.

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

Frequently asked questions

What is a straddle on IDCC?: A straddle on IDCC is the straddle strategy applied to IDCC (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 IDCC stock trading near $280.75, the strikes shown on this page are snapped to the nearest listed IDCC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IDCC 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 IDCC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 44.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,124.42 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IDCC straddle?: The breakeven for the IDCC straddle priced on this page is roughly $258.10 and $301.90 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 IDCC market-implied 1-standard-deviation expected move is approximately 12.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on IDCC?: Straddles on IDCC are pure-volatility plays that profit from large moves in either direction; traders typically buy IDCC 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 IDCC implied volatility affect this straddle?: IDCC ATM IV is at 44.50% with IV rank near 51.24%, 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.