IMMR Straddle Strategy
IMMR (Immersion Corporation), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Immersion Corporation, through its affiliated entities, specializes in the innovation, development, and licensing of haptic technologies. These advancements enable individuals to engage with and perceive digital products via their sense of touch across markets in North America, Europe, and Asia. The company's commercial portfolio includes technology, patent, and bundled licensing agreements. Furthermore, Immersion provides comprehensive Software Development Kits (SDKs), which incorporate essential tools, integration software, and effect libraries designed to facilitate the creation, encoding, and playback of nuanced tactile feedback within digital content. Its additional services encompass reference designs, core reference technology, expert engineering and integration assistance, and tailored software and firmware solutions. The company's offerings find application in a wide array of sectors, such as mobile communications, wearable devices, consumer electronics, gaming, virtual reality (VR), and the automotive industry, among others.
IMMR (Immersion Corporation) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $246.6M, a trailing P/E of 54.40, a beta of 1.00 versus the broader market, a 52-week range of 5.25-8.05, average daily share volume of 630K, a public-listing history dating back to 1999, approximately 14 full-time employees. These structural characteristics shape how IMMR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places IMMR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 54.40 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. IMMR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on IMMR?
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.
IMMR snapshot
As of August 14, 2026, spot at $7.54, ATM IV 24.20%, IV rank 3.83%, expected move 6.94%. The straddle on IMMR below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this straddle structure on IMMR specifically: IMMR IV at 24.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a IMMR straddle, with a market-implied 1-standard-deviation move of approximately 6.94% (roughly $0.52 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IMMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IMMR should anchor to the underlying notional of $7.54 per share and to the trader's directional view on IMMR stock.
IMMR straddle setup
The IMMR 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 IMMR at $7.54 on that close, the first option leg uses a $7.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IMMR chain at a 35-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 IMMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.54 | N/A |
| Buy 1 | Put | $7.54 | N/A |
IMMR 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.
IMMR straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on IMMR. 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 IMMR
Straddles on IMMR are pure-volatility plays that profit from large moves in either direction; traders typically buy IMMR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
IMMR thesis for this straddle
The market-implied 1-standard-deviation range for IMMR extends from approximately $7.02 on the downside to $8.06 on the upside. A IMMR 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 IMMR IV rank near 3.83% 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 IMMR at 24.20%. As a Technology name, IMMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IMMR-specific events.
IMMR 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. IMMR positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IMMR alongside the broader basket even when IMMR-specific fundamentals are unchanged. Always rebuild the position from current IMMR chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on IMMR?
- A straddle on IMMR is the straddle strategy applied to IMMR (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 IMMR stock at $7.54 on the most recent close, the strikes shown on this page are snapped to the nearest listed IMMR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IMMR 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 IMMR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 24.20%), 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 IMMR straddle?
- The breakeven for the IMMR straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The IMMR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on IMMR?
- Straddles on IMMR are pure-volatility plays that profit from large moves in either direction; traders typically buy IMMR 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 IMMR implied volatility affect this straddle?
- IMMR ATM IV is at 24.20% with IV rank near 3.83%, 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.