MNTS Straddle Strategy
MNTS (Momentus Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.
Specializing in services for the space environment, Momentus Inc. provides critical in-orbit infrastructure. This includes offerings like space logistics and satellite servicing. The enterprise was founded by Mikhail Kokorich in 2017 and its primary base of operations is located in San Jose, California.
MNTS (Momentus Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $40.4M, a beta of 2.19 versus the broader market, a 52-week range of 3.11-43.57143, average daily share volume of 6.3M, a public-listing history dating back to 2020, approximately 123 full-time employees. These structural characteristics shape how MNTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.19 indicates MNTS 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 MNTS?
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 MNTS snapshot
As of June 30, 2026, spot at $6.72, ATM IV 194.70%, IV rank 38.10%, expected move 55.82%. The straddle on MNTS 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 MNTS specifically: MNTS IV at 194.70% 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 55.82% (roughly $3.75 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 MNTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MNTS should anchor to the underlying notional of $6.72 per share and to the trader's directional view on MNTS stock.
MNTS straddle setup
The MNTS 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 MNTS near $6.72, the first option leg uses a $6.72 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MNTS 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 MNTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.72 | N/A |
| Buy 1 | Put | $6.72 | N/A |
MNTS 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.
MNTS straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on MNTS. 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 MNTS
Straddles on MNTS are pure-volatility plays that profit from large moves in either direction; traders typically buy MNTS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
MNTS thesis for this straddle
The market-implied 1-standard-deviation range for MNTS extends from approximately $2.97 on the downside to $10.47 on the upside. A MNTS 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 MNTS IV rank near 38.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on MNTS should anchor more to the directional view and the expected-move geometry. As a Industrials name, MNTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MNTS-specific events.
MNTS 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. MNTS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MNTS alongside the broader basket even when MNTS-specific fundamentals are unchanged. Always rebuild the position from current MNTS chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on MNTS?
- A straddle on MNTS is the straddle strategy applied to MNTS (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 MNTS stock trading near $6.72, the strikes shown on this page are snapped to the nearest listed MNTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MNTS 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 MNTS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 194.70%), 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 MNTS straddle?
- The breakeven for the MNTS 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 MNTS market-implied 1-standard-deviation expected move is approximately 55.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on MNTS?
- Straddles on MNTS are pure-volatility plays that profit from large moves in either direction; traders typically buy MNTS 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 MNTS implied volatility affect this straddle?
- MNTS ATM IV is at 194.70% with IV rank near 38.10%, 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.