IIIV Straddle Strategy
IIIV (i3 Verticals, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
i3 Verticals, Inc. provides integrated payment and software solutions to small- and medium-sized businesses and organizations in education, non-profit, public sector, and healthcare markets in the United States. It operates in two segments, Merchant Services, and Proprietary Software and Payments. The company offers payment processing services that enables clients to accept electronic payments, facilitating the exchange of funds and transaction data between clients, financial institutions, and payment networks. The company also licenses software; and provides ongoing support, and other point of sale-related solutions. It offers its solutions to clients through direct sales force; distribution partners, including independent software vendors, value-added resellers, and independent sales organizations; and referral partners, such as financial institutions, trade associations, chambers of commerce, and card issuers. The company was founded in 2012 and is headquartered in Nashville, Tennessee.
IIIV (i3 Verticals, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $417.2M, a trailing P/E of 22.97, a beta of 0.89 versus the broader market, a 52-week range of 18.588-33.97, average daily share volume of 327K, a public-listing history dating back to 2018, approximately 1K full-time employees. These structural characteristics shape how IIIV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.89 places IIIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on IIIV?
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 IIIV snapshot
As of May 15, 2026, spot at $18.93, ATM IV 20.70%, IV rank 1.15%, expected move 5.93%. The straddle on IIIV 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 IIIV specifically: IIIV IV at 20.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a IIIV straddle, with a market-implied 1-standard-deviation move of approximately 5.93% (roughly $1.12 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 IIIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on IIIV should anchor to the underlying notional of $18.93 per share and to the trader's directional view on IIIV stock.
IIIV straddle setup
The IIIV 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 IIIV near $18.93, the first option leg uses a $18.93 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IIIV 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 IIIV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $18.93 | N/A |
| Buy 1 | Put | $18.93 | N/A |
IIIV 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.
IIIV straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on IIIV. 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 IIIV
Straddles on IIIV are pure-volatility plays that profit from large moves in either direction; traders typically buy IIIV straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
IIIV thesis for this straddle
The market-implied 1-standard-deviation range for IIIV extends from approximately $17.81 on the downside to $20.05 on the upside. A IIIV 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 IIIV IV rank near 1.15% 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 IIIV at 20.70%. As a Technology name, IIIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IIIV-specific events.
IIIV 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. IIIV positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IIIV alongside the broader basket even when IIIV-specific fundamentals are unchanged. Always rebuild the position from current IIIV chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on IIIV?
- A straddle on IIIV is the straddle strategy applied to IIIV (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 IIIV stock trading near $18.93, the strikes shown on this page are snapped to the nearest listed IIIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IIIV 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 IIIV straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 20.70%), 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 IIIV straddle?
- The breakeven for the IIIV 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 IIIV market-implied 1-standard-deviation expected move is approximately 5.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on IIIV?
- Straddles on IIIV are pure-volatility plays that profit from large moves in either direction; traders typically buy IIIV 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 IIIV implied volatility affect this straddle?
- IIIV ATM IV is at 20.70% with IV rank near 1.15%, 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.