OFRM Straddle Strategy

OFRM (Once Upon A Farm Pbc), in the Consumer Defensive sector, (Packaged Foods industry), listed on NYSE.

Once Upon A Farm, PBC produces and sells organic baby food pouches, meals, and snacks for children. The company provides products that include blends and meals made with organic ingredients, which are cold-pressed or freshly frozen. It also produces soft-baked bars for toddlers and children, suitable for lunchboxes and on-the-go consumption. Its offerings are available for delivery and can be purchased through its website. The company was founded in 2017 and is based in Berkeley, California.

OFRM (Once Upon A Farm Pbc) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $113.8M, a beta of 0.00 versus the broader market, a 52-week range of 14-27, average daily share volume of 572K, a public-listing history dating back to 2015, approximately 144 full-time employees. These structural characteristics shape how OFRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates OFRM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a straddle on OFRM?

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 OFRM snapshot

As of May 15, 2026, spot at $15.87, ATM IV 71.90%, expected move 20.61%. The straddle on OFRM 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 OFRM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for OFRM is inferred from ATM IV at 71.90% alone, with a market-implied 1-standard-deviation move of approximately 20.61% (roughly $3.27 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 OFRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on OFRM should anchor to the underlying notional of $15.87 per share and to the trader's directional view on OFRM stock.

OFRM straddle setup

The OFRM 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 OFRM near $15.87, the first option leg uses a $15.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OFRM 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 OFRM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$15.87	N/A
Buy 1	Put	$15.87	N/A

OFRM 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.

OFRM straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on OFRM. 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 OFRM

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

OFRM thesis for this straddle

The market-implied 1-standard-deviation range for OFRM extends from approximately $12.60 on the downside to $19.14 on the upside. A OFRM 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. As a Consumer Defensive name, OFRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OFRM-specific events.

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

Frequently asked questions

What is a straddle on OFRM?: A straddle on OFRM is the straddle strategy applied to OFRM (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 OFRM stock trading near $15.87, the strikes shown on this page are snapped to the nearest listed OFRM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OFRM 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 OFRM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 71.90%), 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 OFRM straddle?: The breakeven for the OFRM 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 OFRM market-implied 1-standard-deviation expected move is approximately 20.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on OFRM?: Straddles on OFRM are pure-volatility plays that profit from large moves in either direction; traders typically buy OFRM 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 OFRM implied volatility affect this straddle?: Current OFRM ATM IV is 71.90%; IV rank context is unavailable in the current snapshot.