KFRC Straddle Strategy
KFRC (Kforce Inc.), in the Industrials sector, (Staffing & Employment Services industry), listed on NYSE.
Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. This segment serves clients in various industries comprising financial and business services, communications, insurance, retail, and technology industries. The FA businesses segment offers talent solutions to its clients in areas, including financial planning and analysis, business intelligence analysis, accounting, transactional accounting, business and cost analysis, and taxation and treasury. It also provides consultants in lower skilled areas comprising loan servicing and support, customer and call center support, data entry, and other administrative roles.
KFRC (Kforce Inc.) trades in the Industrials sector, specifically Staffing & Employment Services, with a market capitalization of approximately $702.8M, a trailing P/E of 19.62, a beta of 0.88 versus the broader market, a 52-week range of 24.49-47.5, average daily share volume of 311K, a public-listing history dating back to 1995, approximately 2K full-time employees. These structural characteristics shape how KFRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places KFRC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KFRC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on KFRC?
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 KFRC snapshot
As of May 13, 2026, spot at $39.63, ATM IV 48.70%, IV rank 13.45%, expected move 13.96%. The straddle on KFRC 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 KFRC specifically: KFRC IV at 48.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a KFRC straddle, with a market-implied 1-standard-deviation move of approximately 13.96% (roughly $5.53 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 KFRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on KFRC should anchor to the underlying notional of $39.63 per share and to the trader's directional view on KFRC stock.
KFRC straddle setup
The KFRC 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 KFRC near $39.63, the first option leg uses a $39.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KFRC 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 KFRC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $39.63 | N/A |
| Buy 1 | Put | $39.63 | N/A |
KFRC 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.
KFRC straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on KFRC. 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 KFRC
Straddles on KFRC are pure-volatility plays that profit from large moves in either direction; traders typically buy KFRC straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
KFRC thesis for this straddle
The market-implied 1-standard-deviation range for KFRC extends from approximately $34.10 on the downside to $45.16 on the upside. A KFRC 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 KFRC IV rank near 13.45% 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 KFRC at 48.70%. As a Industrials name, KFRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KFRC-specific events.
KFRC 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. KFRC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KFRC alongside the broader basket even when KFRC-specific fundamentals are unchanged. Always rebuild the position from current KFRC chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on KFRC?
- A straddle on KFRC is the straddle strategy applied to KFRC (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 KFRC stock trading near $39.63, the strikes shown on this page are snapped to the nearest listed KFRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KFRC 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 KFRC 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 unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KFRC straddle?
- The breakeven for the KFRC 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 KFRC 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 KFRC?
- Straddles on KFRC are pure-volatility plays that profit from large moves in either direction; traders typically buy KFRC 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 KFRC implied volatility affect this straddle?
- KFRC ATM IV is at 48.70% with IV rank near 13.45%, 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.