How are IT 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 IT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 48.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,712.76 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IT straddle?

The breakeven for the IT straddle priced on this page is roughly $127.80 and $162.20 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 IT market-implied 1-standard-deviation expected move is approximately 13.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IT implied volatility affect this straddle?

IT ATM IV is at 48.70% with IV rank near 36.29%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

IT Straddle Strategy

IT (Gartner, Inc.), in the Technology sector, (Information Technology Services industry), listed on NYSE.

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers business professionals in an organization the opportunity to learn, share, and network. The Consulting segment offers market research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization.

IT (Gartner, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $9.67B, a trailing P/E of 13.61, a beta of 0.91 versus the broader market, a 52-week range of 139.18-450.6, average daily share volume of 1.5M, a public-listing history dating back to 1993, approximately 21K full-time employees. These structural characteristics shape how IT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places IT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on IT?

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 IT snapshot

As of May 15, 2026, spot at $145.80, ATM IV 48.70%, IV rank 36.29%, expected move 13.96%. The straddle on IT 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 IT specifically: IT IV at 48.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 13.96% (roughly $20.36 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 IT expiries trade a higher absolute premium for lower per-day decay. Position sizing on IT should anchor to the underlying notional of $145.80 per share and to the trader's directional view on IT stock.

IT straddle setup

The IT 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 IT near $145.80, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IT 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 IT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$145.00	$8.90
Buy 1	Put	$145.00	$8.30

IT straddle risk and reward

Net Premium / Debit: -$1,720.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,712.76
Breakeven(s): $127.80, $162.20
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.

IT straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on IT. 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%	+$12,779.00
$32.25	-77.9%	+$9,555.39
$64.48	-55.8%	+$6,331.78
$96.72	-33.7%	+$3,108.18
$128.95	-11.6%	-$115.43
$161.19	+10.6%	-$100.96
$193.43	+32.7%	+$3,122.65
$225.66	+54.8%	+$6,346.26
$257.90	+76.9%	+$9,569.86
$290.13	+99.0%	+$12,793.47

When traders use straddle on IT

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

IT thesis for this straddle

The market-implied 1-standard-deviation range for IT extends from approximately $125.44 on the downside to $166.16 on the upside. A IT 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 IT IV rank near 36.29% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on IT should anchor more to the directional view and the expected-move geometry. As a Technology name, IT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IT-specific events.

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

Frequently asked questions

What is a straddle on IT?: A straddle on IT is the straddle strategy applied to IT (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 IT stock trading near $145.80, the strikes shown on this page are snapped to the nearest listed IT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IT 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 IT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 48.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,712.76 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IT straddle?: The breakeven for the IT straddle priced on this page is roughly $127.80 and $162.20 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 IT market-implied 1-standard-deviation expected move is approximately 13.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on IT?: Straddles on IT are pure-volatility plays that profit from large moves in either direction; traders typically buy IT 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 IT implied volatility affect this straddle?: IT ATM IV is at 48.70% with IV rank near 36.29%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.