MTRX Straddle Strategy
MTRX (Matrix Service Company), in the Industrials sector, (Engineering & Construction industry), listed on NASDAQ.
Matrix Service Company provides engineering, fabrication, infrastructure, construction, and maintenance services primarily to the oil, gas, power, petrochemical, industrial, agricultural, mining, and minerals markets in the United States, Canada, South Korea, Australia, and internationally. It operates through three segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, distribution upgrades, and maintenance; and emergency and storm restoration services. This segment also provides construction and maintenance services to combined cycle plants and other natural gas fired power stations. The Process and Industrial Facilities segment engages in the crude oil refining; processing, fractionating, and marketing of natural gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction service. The Storage and Terminal Solutions segment undertakes work related to aboveground storage tanks and terminals; engineering, fabrication and construction, and maintenance and repair, which include planned and emergency services; and liquefied natural gas, liquid nitrogen/liquid oxygen, liquid petroleum, hydrogen, and other specialty vessels, which comprise spheres, as well as marine structures, and truck and rail loading/offloading facilities.
MTRX (Matrix Service Company) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $332.0M, a beta of 1.02 versus the broader market, a 52-week range of 9.88-16.11, average daily share volume of 283K, a public-listing history dating back to 1990, approximately 2K full-time employees. These structural characteristics shape how MTRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places MTRX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on MTRX?
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 MTRX snapshot
As of May 15, 2026, spot at $11.88, ATM IV 70.40%, IV rank 12.30%, expected move 20.18%. The straddle on MTRX 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 34-day expiry.
Why this straddle structure on MTRX specifically: MTRX IV at 70.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a MTRX straddle, with a market-implied 1-standard-deviation move of approximately 20.18% (roughly $2.40 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MTRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MTRX should anchor to the underlying notional of $11.88 per share and to the trader's directional view on MTRX stock.
MTRX straddle setup
The MTRX 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 MTRX near $11.88, the first option leg uses a $11.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MTRX chain at a 34-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 MTRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $11.88 | N/A |
| Buy 1 | Put | $11.88 | N/A |
MTRX 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.
MTRX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on MTRX. 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 MTRX
Straddles on MTRX are pure-volatility plays that profit from large moves in either direction; traders typically buy MTRX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
MTRX thesis for this straddle
The market-implied 1-standard-deviation range for MTRX extends from approximately $9.48 on the downside to $14.28 on the upside. A MTRX 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 MTRX IV rank near 12.30% 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 MTRX at 70.40%. As a Industrials name, MTRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MTRX-specific events.
MTRX 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. MTRX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MTRX alongside the broader basket even when MTRX-specific fundamentals are unchanged. Always rebuild the position from current MTRX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on MTRX?
- A straddle on MTRX is the straddle strategy applied to MTRX (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 MTRX stock trading near $11.88, the strikes shown on this page are snapped to the nearest listed MTRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MTRX 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 MTRX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 70.40%), 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 MTRX straddle?
- The breakeven for the MTRX 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 MTRX market-implied 1-standard-deviation expected move is approximately 20.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on MTRX?
- Straddles on MTRX are pure-volatility plays that profit from large moves in either direction; traders typically buy MTRX 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 MTRX implied volatility affect this straddle?
- MTRX ATM IV is at 70.40% with IV rank near 12.30%, 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.