How are MSI 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 MSI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 26.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,805.19 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MSI straddle?

The breakeven for the MSI straddle priced on this page is roughly $390.45 and $429.55 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 MSI market-implied 1-standard-deviation expected move is approximately 7.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MSI implied volatility affect this straddle?

MSI ATM IV is at 26.10% with IV rank near 30.76%, 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.

MSI Straddle Strategy

MSI (Motorola Solutions, Inc.), in the Technology sector, (Communication Equipment industry), listed on NYSE.

Motorola Solutions, Inc. delivers essential communication and data analysis capabilities vital for critical operations across the United States, the United Kingdom, Canada, and other international markets. The company structures its extensive operations into two primary segments: Products and Systems Integration, and Software and Services. The Products and Systems Integration division offers a comprehensive suite of infrastructure, various devices, accessories, and video security solutions, alongside expert services for the deployment and seamless integration of systems, hardware, software, and specialized applications. This segment caters to governmental bodies, public safety agencies, and commercial enterprises that rely on private communication networks, advanced video security systems, and robust tools for managing mobile workforces. Their product portfolio spans land mobile radio (LMR) communication equipment, such as portable and vehicle-mounted two-way radios, as well as video security and access control hardware, including fixed and mobile cameras. It also encompasses core radio network software and central processing systems, base stations, consoles, and repeaters, in addition to sophisticated video analytics, network video management hardware and software, and access control solutions.

MSI (Motorola Solutions, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $66.88B, a trailing P/E of 31.96, a beta of 0.89 versus the broader market, a 52-week range of 359.36-492.22, average daily share volume of 1.1M, a public-listing history dating back to 1980, approximately 21K full-time employees. These structural characteristics shape how MSI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.89 places MSI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MSI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on MSI?

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 MSI snapshot

As of June 29, 2026, spot at $410.56, ATM IV 26.10%, IV rank 30.76%, expected move 7.48%. The straddle on MSI 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 MSI specifically: MSI IV at 26.10% 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 7.48% (roughly $30.72 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 MSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MSI should anchor to the underlying notional of $410.56 per share and to the trader's directional view on MSI stock.

MSI straddle setup

The MSI 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 MSI near $410.56, the first option leg uses a $410.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MSI 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 MSI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$410.00	$11.25
Buy 1	Put	$410.00	$8.30

MSI straddle risk and reward

Net Premium / Debit: -$1,955.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,805.19
Breakeven(s): $390.45, $429.55
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.

MSI straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on MSI. 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%	+$39,044.00
$90.79	-77.9%	+$29,966.40
$181.56	-55.8%	+$20,888.80
$272.34	-33.7%	+$11,811.21
$363.11	-11.6%	+$2,733.61
$453.89	+10.6%	+$2,433.99
$544.67	+32.7%	+$11,511.59
$635.44	+54.8%	+$20,589.19
$726.22	+76.9%	+$29,666.78
$816.99	+99.0%	+$38,744.38

When traders use straddle on MSI

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

MSI thesis for this straddle

The market-implied 1-standard-deviation range for MSI extends from approximately $379.84 on the downside to $441.28 on the upside. A MSI 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 MSI IV rank near 30.76% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on MSI should anchor more to the directional view and the expected-move geometry. As a Technology name, MSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MSI-specific events.

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

Frequently asked questions

What is a straddle on MSI?: A straddle on MSI is the straddle strategy applied to MSI (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 MSI stock trading near $410.56, the strikes shown on this page are snapped to the nearest listed MSI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MSI 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 MSI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 26.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,805.19 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MSI straddle?: The breakeven for the MSI straddle priced on this page is roughly $390.45 and $429.55 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 MSI market-implied 1-standard-deviation expected move is approximately 7.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on MSI?: Straddles on MSI are pure-volatility plays that profit from large moves in either direction; traders typically buy MSI 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 MSI implied volatility affect this straddle?: MSI ATM IV is at 26.10% with IV rank near 30.76%, 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.