NVTS Straddle Strategy
NVTS (Navitas Semiconductor Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Navitas Semiconductor Corporation designs, develops, and sells gallium nitride (GaN) power integrated circuits in China, the United States, Taiwan, Korea, and internationally. The company was incorporated in 2013 and is based in Dublin, Ireland.
NVTS (Navitas Semiconductor Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $4.95B, a beta of 3.62 versus the broader market, a 52-week range of 1.88-23.82, average daily share volume of 27.4M, a public-listing history dating back to 2021, approximately 280 full-time employees. These structural characteristics shape how NVTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.62 indicates NVTS 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 NVTS?
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 NVTS snapshot
As of May 15, 2026, spot at $21.33, ATM IV 135.65%, IV rank 49.38%, expected move 38.89%. The straddle on NVTS 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 28-day expiry.
Why this straddle structure on NVTS specifically: NVTS IV at 135.65% 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 38.89% (roughly $8.30 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NVTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVTS should anchor to the underlying notional of $21.33 per share and to the trader's directional view on NVTS stock.
NVTS straddle setup
The NVTS 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 NVTS near $21.33, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVTS chain at a 28-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 NVTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $21.00 | $3.38 |
| Buy 1 | Put | $21.00 | $2.95 |
NVTS straddle risk and reward
- Net Premium / Debit
- -$632.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$631.15
- Breakeven(s)
- $14.67, $27.33
- 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.
NVTS straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on NVTS. 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% | +$1,466.50 |
| $4.73 | -77.8% | +$994.99 |
| $9.44 | -55.7% | +$523.48 |
| $14.16 | -33.6% | +$51.98 |
| $18.87 | -11.5% | -$419.53 |
| $23.59 | +10.6% | -$373.96 |
| $28.30 | +32.7% | +$97.55 |
| $33.02 | +54.8% | +$569.05 |
| $37.73 | +76.9% | +$1,040.56 |
| $42.45 | +99.0% | +$1,512.07 |
When traders use straddle on NVTS
Straddles on NVTS are pure-volatility plays that profit from large moves in either direction; traders typically buy NVTS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
NVTS thesis for this straddle
The market-implied 1-standard-deviation range for NVTS extends from approximately $13.03 on the downside to $29.63 on the upside. A NVTS 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 NVTS IV rank near 49.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on NVTS should anchor more to the directional view and the expected-move geometry. As a Technology name, NVTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVTS-specific events.
NVTS 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. NVTS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVTS alongside the broader basket even when NVTS-specific fundamentals are unchanged. Always rebuild the position from current NVTS chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on NVTS?
- A straddle on NVTS is the straddle strategy applied to NVTS (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 NVTS stock trading near $21.33, the strikes shown on this page are snapped to the nearest listed NVTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVTS 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 NVTS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 135.65%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$631.15 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVTS straddle?
- The breakeven for the NVTS straddle priced on this page is roughly $14.67 and $27.33 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 NVTS market-implied 1-standard-deviation expected move is approximately 38.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on NVTS?
- Straddles on NVTS are pure-volatility plays that profit from large moves in either direction; traders typically buy NVTS 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 NVTS implied volatility affect this straddle?
- NVTS ATM IV is at 135.65% with IV rank near 49.38%, 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.