How are MEDP 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 MEDP straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$3,452.46 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MEDP straddle?

The breakeven for the MEDP straddle priced on this page is roughly $494.90 and $565.10 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 MEDP market-implied 1-standard-deviation expected move is approximately 10.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MEDP implied volatility affect this straddle?

MEDP ATM IV is at 37.60% with IV rank near 20.27%, 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.

MEDP Straddle Strategy

MEDP (Medpace Holdings, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.

Medpace Holdings, Inc., founded in Cincinnati, Ohio, in 1992, functions as a contract research organization (CRO) delivering clinical development and research services. The company assists pharmaceutical, biotechnology, and medical device clients throughout North America, Europe, and Asia. Its comprehensive suite of offerings covers the entire product lifecycle, from initial Phase I trials through to Phase IV post-market surveillance. Medpace's services include designing development programs, coordinating central laboratory functions, managing projects, navigating regulatory processes, overseeing clinical trials, handling data management and analytics, ensuring pharmacovigilance, aiding with new drug application submissions, and providing ongoing post-marketing clinical support. Furthermore, the company offers specialized bio-analytical laboratory testing, conducts clinical human pharmacology studies, provides imaging services, and delivers expert electrocardiography (ECG) reading for clinical research.

MEDP (Medpace Holdings, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $15.05B, a trailing P/E of 32.56, a beta of 1.18 versus the broader market, a 52-week range of 306.704-628.916, average daily share volume of 370K, a public-listing history dating back to 2016, approximately 6K full-time employees. These structural characteristics shape how MEDP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places MEDP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on MEDP?

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 MEDP snapshot

As of June 29, 2026, spot at $533.25, ATM IV 37.60%, IV rank 20.27%, expected move 10.78%. The straddle on MEDP 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 MEDP specifically: MEDP IV at 37.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a MEDP straddle, with a market-implied 1-standard-deviation move of approximately 10.78% (roughly $57.48 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 MEDP expiries trade a higher absolute premium for lower per-day decay. Position sizing on MEDP should anchor to the underlying notional of $533.25 per share and to the trader's directional view on MEDP stock.

MEDP straddle setup

The MEDP 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 MEDP near $533.25, the first option leg uses a $530.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MEDP 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 MEDP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$530.00	$18.70
Buy 1	Put	$530.00	$16.40

MEDP straddle risk and reward

Net Premium / Debit: -$3,510.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$3,452.46
Breakeven(s): $494.90, $565.10
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.

MEDP straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on MEDP. 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%	+$49,489.00
$117.91	-77.9%	+$37,698.66
$235.82	-55.8%	+$25,908.32
$353.72	-33.7%	+$14,117.97
$471.62	-11.6%	+$2,327.63
$589.53	+10.6%	+$2,442.71
$707.43	+32.7%	+$14,233.05
$825.33	+54.8%	+$26,023.39
$943.24	+76.9%	+$37,813.73
$1,061.14	+99.0%	+$49,604.08

When traders use straddle on MEDP

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

MEDP thesis for this straddle

The market-implied 1-standard-deviation range for MEDP extends from approximately $475.77 on the downside to $590.73 on the upside. A MEDP 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 MEDP IV rank near 20.27% 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 MEDP at 37.60%. As a Healthcare name, MEDP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MEDP-specific events.

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

Frequently asked questions

What is a straddle on MEDP?: A straddle on MEDP is the straddle strategy applied to MEDP (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 MEDP stock trading near $533.25, the strikes shown on this page are snapped to the nearest listed MEDP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MEDP 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 MEDP straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$3,452.46 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MEDP straddle?: The breakeven for the MEDP straddle priced on this page is roughly $494.90 and $565.10 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 MEDP market-implied 1-standard-deviation expected move is approximately 10.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on MEDP?: Straddles on MEDP are pure-volatility plays that profit from large moves in either direction; traders typically buy MEDP 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 MEDP implied volatility affect this straddle?: MEDP ATM IV is at 37.60% with IV rank near 20.27%, 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.