NGVT Straddle Strategy
NGVT (Ingevity Corporation), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.
Ingevity Corporation manufactures and sells specialty chemicals and activated carbon materials in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. The company operates through two segments, Performance Materials and Performance Chemicals. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products primarily for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for use in various applications, including food, water, beverage, and chemical purification. The Performance Chemicals segment comprises of pavement technologies, industrial specialties, and engineered polymers. It manufactures products derived from crude tall oil and lignin extracted from the kraft pulping process, as well as caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide.
NGVT (Ingevity Corporation) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $2.48B, a beta of 1.24 versus the broader market, a 52-week range of 39.74-79.29, average daily share volume of 324K, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how NGVT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places NGVT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on NGVT?
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 NGVT snapshot
As of May 15, 2026, spot at $67.81, ATM IV 38.90%, IV rank 3.17%, expected move 11.15%. The straddle on NGVT 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 63-day expiry.
Why this straddle structure on NGVT specifically: NGVT IV at 38.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a NGVT straddle, with a market-implied 1-standard-deviation move of approximately 11.15% (roughly $7.56 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 NGVT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NGVT should anchor to the underlying notional of $67.81 per share and to the trader's directional view on NGVT stock.
NGVT straddle setup
The NGVT 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 NGVT near $67.81, the first option leg uses a $67.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NGVT 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 NGVT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $67.50 | $4.05 |
| Buy 1 | Put | $67.50 | $2.95 |
NGVT straddle risk and reward
- Net Premium / Debit
- -$700.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$697.43
- Breakeven(s)
- $60.50, $74.50
- 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.
NGVT straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on NGVT. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$6,049.00 |
| $15.00 | -77.9% | +$4,549.79 |
| $29.99 | -55.8% | +$3,050.59 |
| $44.99 | -33.7% | +$1,551.38 |
| $59.98 | -11.5% | +$52.18 |
| $74.97 | +10.6% | +$47.03 |
| $89.96 | +32.7% | +$1,546.24 |
| $104.95 | +54.8% | +$3,045.44 |
| $119.95 | +76.9% | +$4,544.65 |
| $134.94 | +99.0% | +$6,043.85 |
When traders use straddle on NGVT
Straddles on NGVT are pure-volatility plays that profit from large moves in either direction; traders typically buy NGVT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
NGVT thesis for this straddle
The market-implied 1-standard-deviation range for NGVT extends from approximately $60.25 on the downside to $75.37 on the upside. A NGVT 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 NGVT IV rank near 3.17% 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 NGVT at 38.90%. As a Basic Materials name, NGVT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NGVT-specific events.
NGVT 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. NGVT positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NGVT alongside the broader basket even when NGVT-specific fundamentals are unchanged. Always rebuild the position from current NGVT chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on NGVT?
- A straddle on NGVT is the straddle strategy applied to NGVT (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 NGVT stock trading near $67.81, the strikes shown on this page are snapped to the nearest listed NGVT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NGVT 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 NGVT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$697.43 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NGVT straddle?
- The breakeven for the NGVT straddle priced on this page is roughly $60.50 and $74.50 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 NGVT market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on NGVT?
- Straddles on NGVT are pure-volatility plays that profit from large moves in either direction; traders typically buy NGVT 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 NGVT implied volatility affect this straddle?
- NGVT ATM IV is at 38.90% with IV rank near 3.17%, 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.