KRNT Straddle Strategy
KRNT (Kornit Digital Ltd.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Kornit Digital Ltd. develops, designs, and markets digital printing solutions for the fashion, apparel, and home decor segments of printed textile industry in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company's solutions include digital printing systems, ink and other consumables, associated software, and value-added services. Its products and services include direct-to-garment printing platform for smaller industrial operators to mass producers; NeoPigment ink and other consumables; QuickP designer software; and maintenance and support, consulting, and professional services. The company serves decorators, online businesses, brand owners, and contract printers. Kornit Digital Ltd. was incorporated in 2002 and is headquartered in Rosh HaAyin, Israel.
KRNT (Kornit Digital Ltd.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $763.7M, a beta of 1.76 versus the broader market, a 52-week range of 11.93-23.48, average daily share volume of 329K, a public-listing history dating back to 2015, approximately 715 full-time employees. These structural characteristics shape how KRNT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.76 indicates KRNT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a straddle on KRNT?
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 KRNT snapshot
As of May 14, 2026, spot at $15.75, ATM IV 50.90%, IV rank 7.61%, expected move 14.59%. The straddle on KRNT 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 35-day expiry.
Why this straddle structure on KRNT specifically: KRNT IV at 50.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a KRNT straddle, with a market-implied 1-standard-deviation move of approximately 14.59% (roughly $2.30 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 KRNT expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRNT should anchor to the underlying notional of $15.75 per share and to the trader's directional view on KRNT stock.
KRNT straddle setup
The KRNT 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 KRNT near $15.75, the first option leg uses a $15.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRNT 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 KRNT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.75 | N/A |
| Buy 1 | Put | $15.75 | N/A |
KRNT 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.
KRNT straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on KRNT. 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 KRNT
Straddles on KRNT are pure-volatility plays that profit from large moves in either direction; traders typically buy KRNT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
KRNT thesis for this straddle
The market-implied 1-standard-deviation range for KRNT extends from approximately $13.45 on the downside to $18.05 on the upside. A KRNT 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 KRNT IV rank near 7.61% 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 KRNT at 50.90%. As a Industrials name, KRNT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRNT-specific events.
KRNT 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. KRNT positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRNT alongside the broader basket even when KRNT-specific fundamentals are unchanged. Always rebuild the position from current KRNT chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on KRNT?
- A straddle on KRNT is the straddle strategy applied to KRNT (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 KRNT stock trading near $15.75, the strikes shown on this page are snapped to the nearest listed KRNT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KRNT 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 KRNT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 50.90%), 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 KRNT straddle?
- The breakeven for the KRNT 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 KRNT market-implied 1-standard-deviation expected move is approximately 14.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on KRNT?
- Straddles on KRNT are pure-volatility plays that profit from large moves in either direction; traders typically buy KRNT 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 KRNT implied volatility affect this straddle?
- KRNT ATM IV is at 50.90% with IV rank near 7.61%, 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.