LODE Straddle Strategy
LODE (Comstock Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on AMEX.
Comstock Inc., a company established in 2008 and based in Virginia City, Nevada, specializes in the exploration, development, and extraction of mineral resources across the state. Its exploration efforts are focused on discovering a diverse range of valuable ores, including gold, silver, lithium, nickel, cobalt, and mercury. The company's operations are structured into two principal divisions: Mining and Real Estate. Within its Mining segment, Comstock oversees approximately 9,358 acres of mining claims and land parcels. This significant acreage comprises around 2,396 acres of patented claims and surface rights, alongside roughly 6,962 acres of unpatented claims located within the historic Comstock and Silver City districts. Key exploration and development initiatives are specifically directed towards properties in the Lucerne and Dayton resource areas, as well as the Occidental and Gold Hill mineral sites.
LODE (Comstock Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $160.6M, a beta of 1.38 versus the broader market, a 52-week range of 2.24-4.98, average daily share volume of 1.5M, a public-listing history dating back to 2010, approximately 46 full-time employees. These structural characteristics shape how LODE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.38 indicates LODE 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 LODE?
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 LODE snapshot
As of June 29, 2026, spot at $4.25, ATM IV 93.00%, IV rank 37.24%, expected move 26.66%. The straddle on LODE 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 18-day expiry.
Why this straddle structure on LODE specifically: LODE IV at 93.00% 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 26.66% (roughly $1.13 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LODE expiries trade a higher absolute premium for lower per-day decay. Position sizing on LODE should anchor to the underlying notional of $4.25 per share and to the trader's directional view on LODE stock.
LODE straddle setup
The LODE 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 LODE near $4.25, the first option leg uses a $4.25 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LODE chain at a 18-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 LODE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.25 | N/A |
| Buy 1 | Put | $4.25 | N/A |
LODE 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.
LODE straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on LODE. 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 LODE
Straddles on LODE are pure-volatility plays that profit from large moves in either direction; traders typically buy LODE straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
LODE thesis for this straddle
The market-implied 1-standard-deviation range for LODE extends from approximately $3.12 on the downside to $5.38 on the upside. A LODE 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 LODE IV rank near 37.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on LODE should anchor more to the directional view and the expected-move geometry. As a Real Estate name, LODE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LODE-specific events.
LODE 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. LODE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LODE alongside the broader basket even when LODE-specific fundamentals are unchanged. Always rebuild the position from current LODE chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on LODE?
- A straddle on LODE is the straddle strategy applied to LODE (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 LODE stock trading near $4.25, the strikes shown on this page are snapped to the nearest listed LODE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LODE 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 LODE straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 93.00%), 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 LODE straddle?
- The breakeven for the LODE 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 LODE market-implied 1-standard-deviation expected move is approximately 26.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on LODE?
- Straddles on LODE are pure-volatility plays that profit from large moves in either direction; traders typically buy LODE 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 LODE implied volatility affect this straddle?
- LODE ATM IV is at 93.00% with IV rank near 37.24%, 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.