III Straddle Strategy

III (Information Services Group, Inc.), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.

Information Services Group, Inc., together with its subsidiaries, operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific. The company offers digital transformation services, including automation, cloud, and data analytics; sourcing advisory; managed governance and risk; network carrier; technology strategy and operations design; change management; and market intelligence and technology research and analysis services. It supports private and public sector organizations to transform and optimize their operational environments. The company also provides ISG Digital, a client solution platform that helps clients developing technology, transformation, sourcing, and digital solutions; and ISG Enterprise, a client solution platform that helps clients manage change and optimize operations in areas comprising finance, human resource, and Procure2Pay. In addition, it offers ISG GovernX, a software platform, which provides insights from market and performance data, and automates the management of third-party supplier relationships that comprise contract and project lifecycles, and risk management. The company serves private sector clients operating in the manufacturing, banking and financial services, insurance, health sciences, energy and utilities, and consumer services industries; and public sector clients, including state and local governments, airport and transit authorities, and national and provincial government units.

III (Information Services Group, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $203.8M, a trailing P/E of 19.24, a beta of 1.08 versus the broader market, a 52-week range of 3.74-6.45, average daily share volume of 256K, a public-listing history dating back to 2007, approximately 1K full-time employees. These structural characteristics shape how III stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places III roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. III pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on III?

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 III snapshot

As of May 15, 2026, spot at $4.16, ATM IV 90.40%, IV rank 27.61%, expected move 25.92%. The straddle on III 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 34-day expiry.

Why this straddle structure on III specifically: III IV at 90.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a III straddle, with a market-implied 1-standard-deviation move of approximately 25.92% (roughly $1.08 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated III expiries trade a higher absolute premium for lower per-day decay. Position sizing on III should anchor to the underlying notional of $4.16 per share and to the trader's directional view on III stock.

III straddle setup

The III 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 III near $4.16, the first option leg uses a $4.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed III chain at a 34-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 III shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$4.16	N/A
Buy 1	Put	$4.16	N/A

III 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.

III straddle payoff curve

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

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

III thesis for this straddle

The market-implied 1-standard-deviation range for III extends from approximately $3.08 on the downside to $5.24 on the upside. A III 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 III IV rank near 27.61% 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 III at 90.40%. As a Technology name, III options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to III-specific events.

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

Frequently asked questions

What is a straddle on III?: A straddle on III is the straddle strategy applied to III (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 III stock trading near $4.16, the strikes shown on this page are snapped to the nearest listed III chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are III 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 III straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 90.40%), 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 III straddle?: The breakeven for the III 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 III market-implied 1-standard-deviation expected move is approximately 25.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on III?: Straddles on III are pure-volatility plays that profit from large moves in either direction; traders typically buy III 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 III implied volatility affect this straddle?: III ATM IV is at 90.40% with IV rank near 27.61%, 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.