MIRM Straddle Strategy
MIRM (Mirum Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Mirum Pharmaceuticals, Inc. is a biopharmaceutical firm dedicated to discovering and commercializing groundbreaking therapies for serious rare and orphan conditions. Its lead experimental drug, LIVMARLI, an oral treatment, is currently undergoing trials for progressive familial intrahepatic cholestasis (PFIC), Alagille syndrome, and biliary atresia. Furthermore, the company is advancing Volixibat to address intrahepatic cholestasis of pregnancy and primary sclerosing cholangitis. Founded in 2018, Mirum Pharmaceuticals, Inc. operates from its headquarters in Foster City, California.
MIRM (Mirum Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.21B, a beta of 0.51 versus the broader market, a 52-week range of 47.89-124.44, average daily share volume of 960K, a public-listing history dating back to 2019, approximately 334 full-time employees. These structural characteristics shape how MIRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.51 indicates MIRM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a straddle on MIRM?
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 MIRM snapshot
As of June 30, 2026, spot at $116.91, ATM IV 38.90%, IV rank 17.05%, expected move 11.15%. The straddle on MIRM 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 MIRM specifically: MIRM IV at 38.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a MIRM straddle, with a market-implied 1-standard-deviation move of approximately 11.15% (roughly $13.04 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 MIRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on MIRM should anchor to the underlying notional of $116.91 per share and to the trader's directional view on MIRM stock.
MIRM straddle setup
The MIRM 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 MIRM near $116.91, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MIRM 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 MIRM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $115.00 | $5.45 |
| Buy 1 | Put | $115.00 | $2.70 |
MIRM straddle risk and reward
- Net Premium / Debit
- -$815.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$799.74
- Breakeven(s)
- $106.85, $123.15
- 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.
MIRM straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on MIRM. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$10,684.00 |
| $25.86 | -77.9% | +$8,099.17 |
| $51.71 | -55.8% | +$5,514.33 |
| $77.56 | -33.7% | +$2,929.50 |
| $103.40 | -11.6% | +$344.66 |
| $129.25 | +10.6% | +$610.17 |
| $155.10 | +32.7% | +$3,195.01 |
| $180.95 | +54.8% | +$5,779.84 |
| $206.80 | +76.9% | +$8,364.67 |
| $232.65 | +99.0% | +$10,949.51 |
When traders use straddle on MIRM
Straddles on MIRM are pure-volatility plays that profit from large moves in either direction; traders typically buy MIRM straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
MIRM thesis for this straddle
The market-implied 1-standard-deviation range for MIRM extends from approximately $103.87 on the downside to $129.95 on the upside. A MIRM 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 MIRM IV rank near 17.05% 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 MIRM at 38.90%. As a Healthcare name, MIRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MIRM-specific events.
MIRM 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. MIRM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MIRM alongside the broader basket even when MIRM-specific fundamentals are unchanged. Always rebuild the position from current MIRM chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on MIRM?
- A straddle on MIRM is the straddle strategy applied to MIRM (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 MIRM stock trading near $116.91, the strikes shown on this page are snapped to the nearest listed MIRM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MIRM 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 MIRM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$799.74 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MIRM straddle?
- The breakeven for the MIRM straddle priced on this page is roughly $106.85 and $123.15 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 MIRM market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on MIRM?
- Straddles on MIRM are pure-volatility plays that profit from large moves in either direction; traders typically buy MIRM 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 MIRM implied volatility affect this straddle?
- MIRM ATM IV is at 38.90% with IV rank near 17.05%, 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.