KEN Straddle Strategy
KEN (Kenon Holdings Ltd.), in the Utilities sector, (Independent Power Producers industry), listed on NYSE.
Kenon Holdings Ltd., through its subsidiaries, operates as an owner, developer, and operator of power generation facilities in Israel, the United States, and internationally. It operates in four segments: OPC Israel, CPV Group, ZIM, and Quantum. The company engages in the generation and supply of electricity and energy; development, construction, and management of renewable energy and conventional natural gas-fired power plants; manufacture of automobiles; and provision of container liner shipping services. As of December 31, 2021, the company had an installed capacity of approximately 610 MW; and operated a fleet of 118 vessels. The company was incorporated in 2014 and is based in Singapore. Kenon Holdings Ltd. is a subsidiary of Ansonia Holdings Singapore B.V.
KEN (Kenon Holdings Ltd.) trades in the Utilities sector, specifically Independent Power Producers, with a market capitalization of approximately $4.72B, a trailing P/E of 71.28, a beta of 0.38 versus the broader market, a 52-week range of 32.742-95.93, average daily share volume of 26K, a public-listing history dating back to 2015, approximately 344 full-time employees. These structural characteristics shape how KEN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.38 indicates KEN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 71.28 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. KEN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on KEN?
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 KEN snapshot
As of May 13, 2026, spot at $91.57, ATM IV 37.10%, IV rank 4.59%, expected move 10.64%. The straddle on KEN 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 36-day expiry.
Why this straddle structure on KEN specifically: KEN IV at 37.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a KEN straddle, with a market-implied 1-standard-deviation move of approximately 10.64% (roughly $9.74 on the underlying). The 36-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KEN expiries trade a higher absolute premium for lower per-day decay. Position sizing on KEN should anchor to the underlying notional of $91.57 per share and to the trader's directional view on KEN stock.
KEN straddle setup
The KEN 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 KEN near $91.57, the first option leg uses a $91.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KEN chain at a 36-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 KEN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $91.57 | N/A |
| Buy 1 | Put | $91.57 | N/A |
KEN 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.
KEN straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on KEN. 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 KEN
Straddles on KEN are pure-volatility plays that profit from large moves in either direction; traders typically buy KEN straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
KEN thesis for this straddle
The market-implied 1-standard-deviation range for KEN extends from approximately $81.83 on the downside to $101.31 on the upside. A KEN 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 KEN IV rank near 4.59% 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 KEN at 37.10%. As a Utilities name, KEN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KEN-specific events.
KEN 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. KEN positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KEN alongside the broader basket even when KEN-specific fundamentals are unchanged. Always rebuild the position from current KEN chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on KEN?
- A straddle on KEN is the straddle strategy applied to KEN (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 KEN stock trading near $91.57, the strikes shown on this page are snapped to the nearest listed KEN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KEN 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 KEN straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 37.10%), 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 KEN straddle?
- The breakeven for the KEN straddle priced on this page is no defined breakeven on the modeled curve 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 KEN market-implied 1-standard-deviation expected move is approximately 10.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on KEN?
- Straddles on KEN are pure-volatility plays that profit from large moves in either direction; traders typically buy KEN 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 KEN implied volatility affect this straddle?
- KEN ATM IV is at 37.10% with IV rank near 4.59%, 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.