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 50.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,157.22 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 $118.30 and $141.70 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 14.54%; 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 50.70% with IV rank near 38.94%, 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 Industrials sector, (Consulting Services industry), listed on NYSE.

Gartner, Inc. functions as a premier research and advisory enterprise, extending its reach across the United States, Canada, Europe, the Middle East, Africa, and various international markets. Its operations are structured into three main divisions: Research, Conferences, and Consulting. The Research division primarily offers a subscription service, enabling on-demand access to extensive published studies, data, industry benchmarks, and direct consultations with its expert network. The Conferences segment provides a platform for business professionals to acquire new knowledge, share insights, and foster connections. Lastly, the Consulting segment furnishes clients with market research, bespoke analyses, and direct, on-site support services. This segment specifically addresses critical IT challenges, offering practical strategies for areas such as optimizing IT expenditures, managing digital transformation, and enhancing IT sourcing processes.

IT (Gartner, Inc.) trades in the Industrials sector, specifically Consulting Services, with a market capitalization of approximately $9.04B, a trailing P/E of 12.72, a beta of 0.93 versus the broader market, a 52-week range of 124.25-409.76, average daily share volume of 1.6M, 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 0.93 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 June 30, 2026, spot at $130.78, ATM IV 50.70%, IV rank 38.94%, expected move 14.54%. 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 17-day expiry.

Why this straddle structure on IT specifically: IT IV at 50.70% 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 14.54% (roughly $19.01 on the underlying). The 17-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 $130.78 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 $130.78, the first option leg uses a $130.00 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 17-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	$130.00	$6.30
Buy 1	Put	$130.00	$5.40

IT straddle risk and reward

Net Premium / Debit: -$1,170.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,157.22
Breakeven(s): $118.30, $141.70
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.

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%	+$11,829.00
$28.93	-77.9%	+$8,937.49
$57.84	-55.8%	+$6,045.98
$86.76	-33.7%	+$3,154.48
$115.67	-11.6%	+$262.97
$144.59	+10.6%	+$288.54
$173.50	+32.7%	+$3,180.05
$202.42	+54.8%	+$6,071.55
$231.33	+76.9%	+$8,963.06
$260.25	+99.0%	+$11,854.57

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 $111.77 on the downside to $149.79 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 38.94% 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 Industrials 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 Industrials 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 $130.78, 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 50.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,157.22 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 $118.30 and $141.70 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 14.54%; 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 50.70% with IV rank near 38.94%, 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.