How are MXL 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 MXL straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 122.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,292.84 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MXL straddle?

The breakeven for the MXL straddle priced on this page is roughly $81.65 and $128.35 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 MXL market-implied 1-standard-deviation expected move is approximately 35.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MXL implied volatility affect this straddle?

MXL ATM IV is at 122.90% with IV rank near 57.28%, 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.

MXL Straddle Strategy

MXL (MaxLinear, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

MaxLinear, Inc. provides communications systems-on-chip solutions in the United States, Asia, Europe, and internationally. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. Its products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers; wi-fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.

MXL (MaxLinear, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $8.65B, a beta of 4.00 versus the broader market, a 52-week range of 12.77-106.28, average daily share volume of 4.9M, a public-listing history dating back to 2010, approximately 1K full-time employees. These structural characteristics shape how MXL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 4.00 indicates MXL 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 MXL?

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 MXL snapshot

As of June 29, 2026, spot at $107.03, ATM IV 122.90%, IV rank 57.28%, expected move 35.23%. The straddle on MXL 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 MXL specifically: MXL IV at 122.90% 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 35.23% (roughly $37.71 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 MXL expiries trade a higher absolute premium for lower per-day decay. Position sizing on MXL should anchor to the underlying notional of $107.03 per share and to the trader's directional view on MXL stock.

MXL straddle setup

The MXL 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 MXL near $107.03, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MXL 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 MXL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$12.90
Buy 1	Put	$105.00	$10.45

MXL straddle risk and reward

Net Premium / Debit: -$2,335.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,292.84
Breakeven(s): $81.65, $128.35
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.

MXL straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on MXL. 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%	+$8,164.00
$23.67	-77.9%	+$5,797.62
$47.34	-55.8%	+$3,431.24
$71.00	-33.7%	+$1,064.85
$94.67	-11.6%	-$1,301.53
$118.33	+10.6%	-$1,002.09
$141.99	+32.7%	+$1,364.29
$165.66	+54.8%	+$3,730.67
$189.32	+76.9%	+$6,097.06
$212.98	+99.0%	+$8,463.44

When traders use straddle on MXL

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

MXL thesis for this straddle

The market-implied 1-standard-deviation range for MXL extends from approximately $69.32 on the downside to $144.74 on the upside. A MXL 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 MXL IV rank near 57.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on MXL should anchor more to the directional view and the expected-move geometry. As a Technology name, MXL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MXL-specific events.

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

Frequently asked questions

What is a straddle on MXL?: A straddle on MXL is the straddle strategy applied to MXL (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 MXL stock trading near $107.03, the strikes shown on this page are snapped to the nearest listed MXL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MXL 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 MXL straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 122.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,292.84 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MXL straddle?: The breakeven for the MXL straddle priced on this page is roughly $81.65 and $128.35 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 MXL market-implied 1-standard-deviation expected move is approximately 35.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on MXL?: Straddles on MXL are pure-volatility plays that profit from large moves in either direction; traders typically buy MXL 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 MXL implied volatility affect this straddle?: MXL ATM IV is at 122.90% with IV rank near 57.28%, 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.