How are LMB 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 LMB straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 67.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$847.48 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LMB straddle?

The breakeven for the LMB straddle priced on this page is roughly $66.25 and $83.75 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 LMB market-implied 1-standard-deviation expected move is approximately 19.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LMB implied volatility affect this straddle?

LMB ATM IV is at 67.40% with IV rank near 43.09%, 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.

LMB Straddle Strategy

LMB (Limbach Holdings, Inc.), in the Industrials sector, (Construction Materials industry), listed on NASDAQ.

Limbach Holdings, Inc. operates as a building systems solution company in the United States. The company operates through two segments, Owner Direct Relationships and General Contractor Relationships. It engages in the construction or renovation projects that involve primarily include mechanical, electrical, plumbing, and controls services (MEPC). It also provides professional and consultative services; inspection, troubleshooting, repair, and services; system and/or facility assessments; turnkey rental equipment solutions; MEPC infrastructure solutions; and customized solutions. The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers; entertainment facilities, and amusement rides and parks; data centers; automotive, energy and general manufacturing plants; and life sciences, including organizations and companies, whose work is centered around research and development focused on living things. Limbach Holdings, Inc. was founded in 1901 and is headquartered in Tampa, Florida.

LMB (Limbach Holdings, Inc.) trades in the Industrials sector, specifically Construction Materials, with a market capitalization of approximately $968.7M, a trailing P/E of 28.76, a beta of 1.42 versus the broader market, a 52-week range of 65.08-154.05, average daily share volume of 290K, a public-listing history dating back to 2014, approximately 2K full-time employees. These structural characteristics shape how LMB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.42 indicates LMB 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 LMB?

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 LMB snapshot

As of June 30, 2026, spot at $77.21, ATM IV 67.40%, IV rank 43.09%, expected move 19.32%. The straddle on LMB 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 LMB specifically: LMB IV at 67.40% 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 19.32% (roughly $14.92 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 LMB expiries trade a higher absolute premium for lower per-day decay. Position sizing on LMB should anchor to the underlying notional of $77.21 per share and to the trader's directional view on LMB stock.

LMB straddle setup

The LMB 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 LMB near $77.21, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LMB 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 LMB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$75.00	$5.40
Buy 1	Put	$75.00	$3.35

LMB straddle risk and reward

Net Premium / Debit: -$875.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$847.48
Breakeven(s): $66.25, $83.75
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.

LMB straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on LMB. 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%	+$6,624.00
$17.08	-77.9%	+$4,916.95
$34.15	-55.8%	+$3,209.91
$51.22	-33.7%	+$1,502.86
$68.29	-11.6%	-$204.18
$85.36	+10.6%	+$161.23
$102.43	+32.7%	+$1,868.27
$119.50	+54.8%	+$3,575.32
$136.57	+76.9%	+$5,282.36
$153.64	+99.0%	+$6,989.41

When traders use straddle on LMB

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

LMB thesis for this straddle

The market-implied 1-standard-deviation range for LMB extends from approximately $62.29 on the downside to $92.13 on the upside. A LMB 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 LMB IV rank near 43.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on LMB should anchor more to the directional view and the expected-move geometry. As a Industrials name, LMB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LMB-specific events.

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

Frequently asked questions

What is a straddle on LMB?: A straddle on LMB is the straddle strategy applied to LMB (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 LMB stock trading near $77.21, the strikes shown on this page are snapped to the nearest listed LMB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LMB 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 LMB straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 67.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$847.48 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LMB straddle?: The breakeven for the LMB straddle priced on this page is roughly $66.25 and $83.75 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 LMB market-implied 1-standard-deviation expected move is approximately 19.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on LMB?: Straddles on LMB are pure-volatility plays that profit from large moves in either direction; traders typically buy LMB 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 LMB implied volatility affect this straddle?: LMB ATM IV is at 67.40% with IV rank near 43.09%, 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.