INBX Straddle Strategy
INBX (Inhibrx Biosciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Inhibrx Biosciences, Inc., a clinical-stage biopharmaceutical company, engages in the development of biologic therapeutics for people with life-threatening conditions. Its therapeutic candidates includes INBRX-109, a tetravalent therapeutic candidate targeting death-receptor 5 that is in phase 2 clinical trial for the treatment of unresectable or metastatic conventional chondrosarcoma; and INBRX-106, a hexavalent sdAb-based therapeutic candidate targeting OX4 that is in phase 2 clinical trial for the treatment of metastatic solid tumor, non-small cell lung cancer, melanoma, head and neck cancer, gastric (GIST) and gastroesophageal adenocarcinoma (GEA) cancer, renal cell carcinoma, and urothelial (transitional) cell carcinoma. The company was incorporated in 2024 and is based in La Jolla, California.
INBX (Inhibrx Biosciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.72B, a beta of 3.89 versus the broader market, a 52-week range of 10.97-155.29, average daily share volume of 370K, a public-listing history dating back to 2024, approximately 156 full-time employees. These structural characteristics shape how INBX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.89 indicates INBX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. INBX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on INBX?
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 INBX snapshot
As of May 15, 2026, spot at $111.19, ATM IV 85.20%, IV rank 10.19%, expected move 24.43%. The straddle on INBX 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 INBX specifically: INBX IV at 85.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a INBX straddle, with a market-implied 1-standard-deviation move of approximately 24.43% (roughly $27.16 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 INBX expiries trade a higher absolute premium for lower per-day decay. Position sizing on INBX should anchor to the underlying notional of $111.19 per share and to the trader's directional view on INBX stock.
INBX straddle setup
The INBX 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 INBX near $111.19, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INBX 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 INBX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $110.00 | $11.80 |
| Buy 1 | Put | $110.00 | $11.20 |
INBX straddle risk and reward
- Net Premium / Debit
- -$2,300.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$2,251.88
- Breakeven(s)
- $87.00, $133.00
- 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.
INBX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on INBX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$8,699.00 |
| $24.59 | -77.9% | +$6,240.64 |
| $49.18 | -55.8% | +$3,782.28 |
| $73.76 | -33.7% | +$1,323.91 |
| $98.34 | -11.6% | -$1,134.45 |
| $122.93 | +10.6% | -$1,007.19 |
| $147.51 | +32.7% | +$1,451.17 |
| $172.10 | +54.8% | +$3,909.53 |
| $196.68 | +76.9% | +$6,367.89 |
| $221.26 | +99.0% | +$8,826.26 |
When traders use straddle on INBX
Straddles on INBX are pure-volatility plays that profit from large moves in either direction; traders typically buy INBX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
INBX thesis for this straddle
The market-implied 1-standard-deviation range for INBX extends from approximately $84.03 on the downside to $138.35 on the upside. A INBX 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 INBX IV rank near 10.19% 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 INBX at 85.20%. As a Healthcare name, INBX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INBX-specific events.
INBX 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. INBX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INBX alongside the broader basket even when INBX-specific fundamentals are unchanged. Always rebuild the position from current INBX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on INBX?
- A straddle on INBX is the straddle strategy applied to INBX (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 INBX stock trading near $111.19, the strikes shown on this page are snapped to the nearest listed INBX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INBX 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 INBX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 85.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,251.88 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a INBX straddle?
- The breakeven for the INBX straddle priced on this page is roughly $87.00 and $133.00 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 INBX market-implied 1-standard-deviation expected move is approximately 24.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on INBX?
- Straddles on INBX are pure-volatility plays that profit from large moves in either direction; traders typically buy INBX 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 INBX implied volatility affect this straddle?
- INBX ATM IV is at 85.20% with IV rank near 10.19%, 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.