NEXA Straddle Strategy
NEXA (Nexa Resources S.A.), in the Basic Materials sector, (Industrial Materials industry), listed on NYSE.
Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business. The company also produces zinc, silver, gold, copper cement, lead, sulfuric acid, sulfur dioxide, copper sulfate, and limestone deposits. It owns and operates five underground polymetallic mines, including three located in the Central Andes of Peru; and two located in the State of Minas Gerais in Brazil. The company also develops the Aripuanã project located in Mato Grosso, Brazil. It exports its products. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017.
NEXA (Nexa Resources S.A.) trades in the Basic Materials sector, specifically Industrial Materials, with a market capitalization of approximately $1.96B, a trailing P/E of 14.75, a beta of 0.88 versus the broader market, a 52-week range of 4.438-16.89, average daily share volume of 1.2M, a public-listing history dating back to 2017, approximately 6K full-time employees. These structural characteristics shape how NEXA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places NEXA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NEXA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on NEXA?
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 NEXA snapshot
As of May 15, 2026, spot at $14.63, ATM IV 73.40%, IV rank 16.58%, expected move 21.04%. The straddle on NEXA 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 NEXA specifically: NEXA IV at 73.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a NEXA straddle, with a market-implied 1-standard-deviation move of approximately 21.04% (roughly $3.08 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 NEXA expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEXA should anchor to the underlying notional of $14.63 per share and to the trader's directional view on NEXA stock.
NEXA straddle setup
The NEXA 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 NEXA near $14.63, the first option leg uses a $14.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEXA 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 NEXA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.63 | N/A |
| Buy 1 | Put | $14.63 | N/A |
NEXA 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.
NEXA straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on NEXA. 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 NEXA
Straddles on NEXA are pure-volatility plays that profit from large moves in either direction; traders typically buy NEXA straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
NEXA thesis for this straddle
The market-implied 1-standard-deviation range for NEXA extends from approximately $11.55 on the downside to $17.71 on the upside. A NEXA 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 NEXA IV rank near 16.58% 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 NEXA at 73.40%. As a Basic Materials name, NEXA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEXA-specific events.
NEXA 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. NEXA positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEXA alongside the broader basket even when NEXA-specific fundamentals are unchanged. Always rebuild the position from current NEXA chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on NEXA?
- A straddle on NEXA is the straddle strategy applied to NEXA (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 NEXA stock trading near $14.63, the strikes shown on this page are snapped to the nearest listed NEXA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEXA 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 NEXA straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 73.40%), 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 NEXA straddle?
- The breakeven for the NEXA 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 NEXA market-implied 1-standard-deviation expected move is approximately 21.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on NEXA?
- Straddles on NEXA are pure-volatility plays that profit from large moves in either direction; traders typically buy NEXA 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 NEXA implied volatility affect this straddle?
- NEXA ATM IV is at 73.40% with IV rank near 16.58%, 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.