How are NGL 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 NGL straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$287.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NGL straddle?

The breakeven for the NGL straddle priced on this page is roughly $15.13 and $20.88 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The NGL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NGL implied volatility affect this straddle?

NGL ATM IV is at 49.80% with IV rank near 18.87%, 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.

NGL Straddle Strategy

NGL (NGL Energy Partners LP), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

NGL Energy Partners LP is engaged in the midstream energy sector, focusing on the movement, storage, blending, and marketing of critical energy commodities such as crude oil, natural gas liquids (NGLs), refined petroleum products, and renewable fuels. The company also offers extensive water solutions. Its operations are structured into three primary segments: The Water Solutions division specializes in managing water generated during oil and natural gas extraction. This involves the transportation, treatment, recycling, and responsible disposal of produced and flowback water. Additionally, it recovers and markets crude oil, handles the disposal of solids like tank bottoms and drilling fluids, performs truck and frac tank washouts, and supplies water for reuse, recycling, or as brackish non-potable water. The Crude Oil Logistics segment is responsible for purchasing crude oil from producers and marketers, then transporting it to refineries.

NGL (NGL Energy Partners LP) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $2.24B, a beta of 0.65 versus the broader market, a 52-week range of 4.88-18.8, average daily share volume of 261K, a public-listing history dating back to 2011, approximately 449 full-time employees. These structural characteristics shape how NGL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates NGL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NGL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on NGL?

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.

NGL snapshot

As of August 14, 2026, spot at $17.91, ATM IV 49.80%, IV rank 18.87%, expected move 14.28%. The straddle on NGL below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.

Why this straddle structure on NGL specifically: NGL IV at 49.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a NGL straddle, with a market-implied 1-standard-deviation move of approximately 14.28% (roughly $2.56 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on NGL should anchor to the underlying notional of $17.91 per share and to the trader's directional view on NGL stock.

NGL straddle setup

The NGL straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NGL at $17.91 on that close, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NGL chain at a 63-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 NGL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$18.00	$1.33
Buy 1	Put	$18.00	$1.55

NGL straddle risk and reward

Net Premium / Debit: -$287.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$287.00
Breakeven(s): $15.13, $20.88
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.

NGL straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on NGL. 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	-99.9%	+$1,511.50
$3.97	-77.8%	+$1,115.61
$7.93	-55.7%	+$719.72
$11.89	-33.6%	+$323.83
$15.85	-11.5%	-$72.06
$19.80	+10.6%	-$107.05
$23.76	+32.7%	+$288.84
$27.72	+54.8%	+$684.73
$31.68	+76.9%	+$1,080.62
$35.64	+99.0%	+$1,476.51

When traders use straddle on NGL

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

NGL thesis for this straddle

The market-implied 1-standard-deviation range for NGL extends from approximately $15.35 on the downside to $20.47 on the upside. A NGL 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 NGL IV rank near 18.87% 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 NGL at 49.80%. As a Energy name, NGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NGL-specific events.

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

Frequently asked questions

What is a straddle on NGL?: A straddle on NGL is the straddle strategy applied to NGL (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 NGL stock at $17.91 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NGL chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NGL 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 NGL straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$287.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NGL straddle?: The breakeven for the NGL straddle priced on this page is roughly $15.13 and $20.88 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The NGL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on NGL?: Straddles on NGL are pure-volatility plays that profit from large moves in either direction; traders typically buy NGL 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 NGL implied volatility affect this straddle?: NGL ATM IV is at 49.80% with IV rank near 18.87%, 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.