How are IR 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 IR straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$558.87 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IR straddle?

The breakeven for the IR straddle priced on this page is roughly $79.18 and $90.83 at expiration, derived from the August 14, 2026 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 IR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IR implied volatility affect this straddle?

IR ATM IV is at 28.30% with IV rank near 9.46%, 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.

IR Straddle Strategy

IR (Ingersoll Rand Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

Ingersoll Rand Inc., established in 1859 and headquartered in Davidson, North Carolina, delivers essential air, fluid, energy, medical, and specialized vehicle technologies to customers across the United States, Europe, the Middle East, Africa, and the Asia Pacific regions. The company operates through two primary divisions: Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services division is responsible for the design, production, sales, and maintenance of various air and gas compression, vacuum, and blower solutions, alongside fluid handling and loading systems, power tools, and lifting apparatus. This segment also encompasses all related spare parts, consumables, air purification systems, controls, additional accessories, and support services. Meanwhile, the Precision and Science Technologies segment focuses on designing, manufacturing, and marketing a range of highly specialized positive displacement pumps, advanced fluid management systems, and their associated accessories and aftermarket parts. These solutions are critical for precise liquid and gas operations such as dosing, transfer, dispensing, compression, sampling, pressure regulation, and flow control in demanding or niche environments.

IR (Ingersoll Rand Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $33.17B, a trailing P/E of 34.65, a beta of 1.17 versus the broader market, a 52-week range of 68.07-100.96, average daily share volume of 4.1M, a public-listing history dating back to 2017, approximately 21K full-time employees. These structural characteristics shape how IR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.17 places IR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on IR?

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.

IR snapshot

As of August 14, 2026, spot at $83.50, ATM IV 28.30%, IV rank 9.46%, expected move 8.11%. The straddle on IR below is built from the August 14, 2026 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 IR specifically: IR IV at 28.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a IR straddle, with a market-implied 1-standard-deviation move of approximately 8.11% (roughly $6.77 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 IR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IR should anchor to the underlying notional of $83.50 per share and to the trader's directional view on IR stock.

IR straddle setup

The IR straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With IR at $83.50 on that close, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IR 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 IR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.00	$2.38
Buy 1	Put	$85.00	$3.45

IR straddle risk and reward

Net Premium / Debit: -$582.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$558.87
Breakeven(s): $79.18, $90.83
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.

IR straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on IR. 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%	+$7,916.50
$18.47	-77.9%	+$6,070.38
$36.93	-55.8%	+$4,224.26
$55.39	-33.7%	+$2,378.14
$73.85	-11.6%	+$532.02
$92.32	+10.6%	+$149.10
$110.78	+32.7%	+$1,995.22
$129.24	+54.8%	+$3,841.34
$147.70	+76.9%	+$5,687.46
$166.16	+99.0%	+$7,533.59

When traders use straddle on IR

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

IR thesis for this straddle

The market-implied 1-standard-deviation range for IR extends from approximately $76.73 on the downside to $90.27 on the upside. A IR 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 IR IV rank near 9.46% 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 IR at 28.30%. As a Industrials name, IR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IR-specific events.

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

Frequently asked questions

What is a straddle on IR?: A straddle on IR is the straddle strategy applied to IR (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 IR stock at $83.50 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IR 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 IR straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$558.87 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IR straddle?: The breakeven for the IR straddle priced on this page is roughly $79.18 and $90.83 at expiration, derived from the August 14, 2026 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 IR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on IR?: Straddles on IR are pure-volatility plays that profit from large moves in either direction; traders typically buy IR 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 IR implied volatility affect this straddle?: IR ATM IV is at 28.30% with IV rank near 9.46%, 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.