How are LHX 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 LHX straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.63%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,573.96 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LHX straddle?

The breakeven for the LHX straddle priced on this page is roughly $274.25 and $305.75 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The LHX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LHX implied volatility affect this straddle?

LHX ATM IV is at 24.63% with IV rank near 33.94%, 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.

LHX Straddle Strategy

LHX (L3Harris Technologies, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

L3Harris Technologies, Inc. is a prominent technology firm specializing in aerospace and defense, delivering vital, high-stakes solutions to governmental and commercial clients across the globe. Its diverse operations are organized into several key segments: The Integrated Mission Systems division is responsible for providing versatile intelligence, surveillance, and reconnaissance (ISR) platforms, alongside various communication technologies. This unit also offers comprehensive support for fleet management, as well as the development, modification, and routine maintenance of sensors for ISR and airborne operations. Furthermore, it develops and integrates specialized mission systems tailored for naval vessels and maritime operations, including sophisticated signals and multi-intelligence platforms, autonomous surface and undersea vehicles, and advanced power and ship control electronics. Cutting-edge electro-optical and infrared technologies are also part of its offerings. The Space and Airborne Systems segment is dedicated to providing sophisticated space payloads, advanced sensor technologies, and complete mission solutions for space-based operations.

LHX (L3Harris Technologies, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $54.14B, a trailing P/E of 28.99, a beta of 0.75 versus the broader market, a 52-week range of 262.68-379.23, average daily share volume of 1.4M, a public-listing history dating back to 1981, approximately 45K full-time employees. These structural characteristics shape how LHX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.75 places LHX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LHX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on LHX?

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.

LHX snapshot

As of August 14, 2026, spot at $291.47, ATM IV 24.63%, IV rank 33.94%, expected move 7.06%. The straddle on LHX below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this straddle structure on LHX specifically: LHX IV at 24.63% 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 7.06% (roughly $20.58 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LHX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LHX should anchor to the underlying notional of $291.47 per share and to the trader's directional view on LHX stock.

LHX straddle setup

The LHX straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LHX at $291.47 on that close, the first option leg uses a $290.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LHX chain at a 28-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 LHX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$290.00	$8.55
Buy 1	Put	$290.00	$7.20

LHX straddle risk and reward

Net Premium / Debit: -$1,575.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,573.96
Breakeven(s): $274.25, $305.75
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.

LHX straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on LHX. 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%	+$27,424.00
$64.45	-77.9%	+$20,979.55
$128.90	-55.8%	+$14,535.10
$193.34	-33.7%	+$8,090.64
$257.79	-11.6%	+$1,646.19
$322.23	+10.6%	+$1,648.26
$386.68	+32.7%	+$8,092.71
$451.12	+54.8%	+$14,537.17
$515.57	+76.9%	+$20,981.62
$580.01	+99.0%	+$27,426.07

When traders use straddle on LHX

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

LHX thesis for this straddle

The market-implied 1-standard-deviation range for LHX extends from approximately $270.89 on the downside to $312.05 on the upside. A LHX 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 LHX IV rank near 33.94% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on LHX should anchor more to the directional view and the expected-move geometry. As a Industrials name, LHX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LHX-specific events.

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

Frequently asked questions

What is a straddle on LHX?: A straddle on LHX is the straddle strategy applied to LHX (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 LHX stock at $291.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LHX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are LHX 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 LHX straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.63%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,573.96 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LHX straddle?: The breakeven for the LHX straddle priced on this page is roughly $274.25 and $305.75 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The LHX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on LHX?: Straddles on LHX are pure-volatility plays that profit from large moves in either direction; traders typically buy LHX 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 LHX implied volatility affect this straddle?: LHX ATM IV is at 24.63% with IV rank near 33.94%, 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.