How are NXT 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 NXT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 77.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,553.53 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NXT straddle?

The breakeven for the NXT straddle priced on this page is roughly $103.95 and $136.05 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 NXT market-implied 1-standard-deviation expected move is approximately 22.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NXT implied volatility affect this straddle?

NXT ATM IV is at 77.90% with IV rank near 25.90%, 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.

NXT Straddle Strategy

NXT (Nextpower Inc.), in the Technology sector, (Consumer Electronics industry), listed on NASDAQ.

Nextpower Inc. provides solar tracker technologies and solutions for utility-scale and distributed generation solar applications in the United States and internationally. The company offers tracking solutions, including NX Horizon, a solar tracking solution; NX Horizon-XTR, a terrain-following tracker to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain; NX Horizon Hail Pro adds automatic stowing using weather service information; and NX Horizon Low Carbon, a solar tracker solution with a reduced carbon footprint. It also provides TrueCapture, an energy yield management system that addresses power production shortfalls; NX Anchor, a solar tracker foundation system to facilitate solar project development in challenging soil conditions; NX Truss Driver, an advanced installation equipment; and NX Navigator, which assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company serves engineering, procurement, and construction firms, as well as solar project developers and owners. Nextpower Inc. was formerly known as Nextracker Inc. and changed its name to Nextpower Inc. in November 2025. The company was founded in 2013 and is headquartered in Fremont, California.

NXT (Nextpower Inc.) trades in the Technology sector, specifically Consumer Electronics, with a market capitalization of approximately $16.07B, a trailing P/E of 27.11, a beta of 1.74 versus the broader market, a 52-week range of 51.69-163.13, average daily share volume of 2.6M, a public-listing history dating back to 2023, approximately 1K full-time employees. These structural characteristics shape how NXT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.74 indicates NXT 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 NXT?

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 NXT snapshot

As of June 30, 2026, spot at $118.72, ATM IV 77.90%, IV rank 25.90%, expected move 22.33%. The straddle on NXT 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 17-day expiry.

Why this straddle structure on NXT specifically: NXT IV at 77.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a NXT straddle, with a market-implied 1-standard-deviation move of approximately 22.33% (roughly $26.51 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NXT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NXT should anchor to the underlying notional of $118.72 per share and to the trader's directional view on NXT stock.

NXT straddle setup

The NXT 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 NXT near $118.72, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NXT chain at a 17-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 NXT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$120.00	$7.60
Buy 1	Put	$120.00	$8.45

NXT straddle risk and reward

Net Premium / Debit: -$1,605.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,553.53
Breakeven(s): $103.95, $136.05
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.

NXT straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on NXT. 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%	+$10,394.00
$26.26	-77.9%	+$7,769.15
$52.51	-55.8%	+$5,144.29
$78.76	-33.7%	+$2,519.44
$105.00	-11.6%	-$105.42
$131.25	+10.6%	-$479.73
$157.50	+32.7%	+$2,145.13
$183.75	+54.8%	+$4,769.98
$210.00	+76.9%	+$7,394.83
$236.25	+99.0%	+$10,019.69

When traders use straddle on NXT

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

NXT thesis for this straddle

The market-implied 1-standard-deviation range for NXT extends from approximately $92.21 on the downside to $145.23 on the upside. A NXT 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 NXT IV rank near 25.90% 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 NXT at 77.90%. As a Technology name, NXT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NXT-specific events.

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

Frequently asked questions

What is a straddle on NXT?: A straddle on NXT is the straddle strategy applied to NXT (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 NXT stock trading near $118.72, the strikes shown on this page are snapped to the nearest listed NXT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NXT 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 NXT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 77.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,553.53 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NXT straddle?: The breakeven for the NXT straddle priced on this page is roughly $103.95 and $136.05 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 NXT market-implied 1-standard-deviation expected move is approximately 22.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on NXT?: Straddles on NXT are pure-volatility plays that profit from large moves in either direction; traders typically buy NXT 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 NXT implied volatility affect this straddle?: NXT ATM IV is at 77.90% with IV rank near 25.90%, 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.