MGNX Straddle Strategy
MGNX (MacroGenics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
MacroGenics, Inc., a clinical-stage biopharmaceutical company, discovers, develops, manufactures, and commercializes antibody-based therapeutics for the treatment of cancer in the United States. The company’s product pipeline includes lorigerlimab, a bispecific DART molecule that targets checkpoint inhibitors PD-1 and CTLA-4 for the treatment of mCRPC and docetaxel that is in phase 2 clinical trials, as well as for the treatment of platinum-resistant ovarian cancer and clear cell gynecologic cancer which has completed phase 1 clinical trial; MGC026, an ADC that targets B7-H3 and delivers a novel topoisomerase I inhibitor (TOP1i)-based linker-payload; MGC028, an antibody-drug conjugates (ADC) that targets ADAM9 and delivers a novel TOP1i-based linker-payload for the treatment of solid tumors, which is in phase 1 clinical trials; MGC030, a ADC molecule that targets an undisclosed antigen expressed across several solid tumors, which is in preclinical trials. It is also developing T-cell engager programs. The company has collaborations with TerSera Therapeutics LLC; Incyte Corporation; and Gilead Sciences, Inc. MacroGenics, Inc. was incorporated in 2000 and is headquartered in Rockville, Maryland.
MGNX (MacroGenics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $305.7M, a beta of 1.20 versus the broader market, a 52-week range of 1.19-5.08, average daily share volume of 1.1M, a public-listing history dating back to 2013, approximately 300 full-time employees. These structural characteristics shape how MGNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.20 places MGNX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on MGNX?
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 MGNX snapshot
As of June 29, 2026, spot at $4.88, ATM IV 100.10%, IV rank 20.74%, expected move 28.70%. The straddle on MGNX 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 MGNX specifically: MGNX IV at 100.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a MGNX straddle, with a market-implied 1-standard-deviation move of approximately 28.70% (roughly $1.40 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 MGNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MGNX should anchor to the underlying notional of $4.88 per share and to the trader's directional view on MGNX stock.
MGNX straddle setup
The MGNX 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 MGNX near $4.88, the first option leg uses a $4.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MGNX 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 MGNX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.88 | N/A |
| Buy 1 | Put | $4.88 | N/A |
MGNX 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.
MGNX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on MGNX. 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 MGNX
Straddles on MGNX are pure-volatility plays that profit from large moves in either direction; traders typically buy MGNX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
MGNX thesis for this straddle
The market-implied 1-standard-deviation range for MGNX extends from approximately $3.48 on the downside to $6.28 on the upside. A MGNX 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 MGNX IV rank near 20.74% 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 MGNX at 100.10%. As a Healthcare name, MGNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MGNX-specific events.
MGNX 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. MGNX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MGNX alongside the broader basket even when MGNX-specific fundamentals are unchanged. Always rebuild the position from current MGNX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on MGNX?
- A straddle on MGNX is the straddle strategy applied to MGNX (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 MGNX stock trading near $4.88, the strikes shown on this page are snapped to the nearest listed MGNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MGNX 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 MGNX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 100.10%), 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 MGNX straddle?
- The breakeven for the MGNX 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 MGNX market-implied 1-standard-deviation expected move is approximately 28.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on MGNX?
- Straddles on MGNX are pure-volatility plays that profit from large moves in either direction; traders typically buy MGNX 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 MGNX implied volatility affect this straddle?
- MGNX ATM IV is at 100.10% with IV rank near 20.74%, 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.