How are OMER 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 OMER straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 109.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$177.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OMER straddle?

The breakeven for the OMER straddle priced on this page is roughly $8.20 and $11.80 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 OMER market-implied 1-standard-deviation expected move is approximately 31.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OMER implied volatility affect this straddle?

OMER ATM IV is at 109.80% with IV rank near 28.93%, 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.

OMER Straddle Strategy

OMER (Omeros Corporation), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Omeros Corporation is a biopharmaceutical firm with commercialized products, actively engaged in the discovery, development, and market introduction of both small-molecule and protein-based therapies, including treatments for rare diseases. The company's therapeutic endeavors primarily focus on inflammatory conditions, illnesses mediated by the complement system, cancers linked to immune system dysregulation, and disorders characterized by addiction or compulsion. Its robust clinical pipeline features several promising candidates. Narsoplimab (also known as OMS721 or MASP-2), a leading asset, has successfully concluded pivotal trials for hematopoietic stem-cell transplant-associated thrombotic microangiopathy (HSCT-TMA). This drug is also currently undergoing Phase III clinical evaluation for immunoglobulin A nephropathy (IgAN) and atypical hemolytic uremic syndrome (aHUS), in addition to a Phase II trial investigating its potential for treating COVID-19. Further expanding its clinical portfolio, Omeros is developing PPAR? (OMS405) in Phase II for opioid and nicotine dependence.

OMER (Omeros Corporation) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $627.5M, a trailing P/E of 7.24, a beta of 2.53 versus the broader market, a 52-week range of 2.95-17.65, average daily share volume of 1.6M, a public-listing history dating back to 2009, approximately 202 full-time employees. These structural characteristics shape how OMER stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.53 indicates OMER has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.24 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a straddle on OMER?

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 OMER snapshot

As of June 30, 2026, spot at $9.63, ATM IV 109.80%, IV rank 28.93%, expected move 31.48%. The straddle on OMER 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 OMER specifically: OMER IV at 109.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a OMER straddle, with a market-implied 1-standard-deviation move of approximately 31.48% (roughly $3.03 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 OMER expiries trade a higher absolute premium for lower per-day decay. Position sizing on OMER should anchor to the underlying notional of $9.63 per share and to the trader's directional view on OMER stock.

OMER straddle setup

The OMER 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 OMER near $9.63, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OMER 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 OMER shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$10.00	$0.73
Buy 1	Put	$10.00	$1.08

OMER straddle risk and reward

Net Premium / Debit: -$180.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$177.36
Breakeven(s): $8.20, $11.80
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.

OMER straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on OMER. 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%	+$819.00
$2.14	-77.8%	+$606.19
$4.27	-55.7%	+$393.37
$6.39	-33.6%	+$180.56
$8.52	-11.5%	-$32.26
$10.65	+10.6%	-$114.93
$12.78	+32.7%	+$97.88
$14.91	+54.8%	+$310.70
$17.04	+76.9%	+$523.51
$19.16	+99.0%	+$736.33

When traders use straddle on OMER

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

OMER thesis for this straddle

The market-implied 1-standard-deviation range for OMER extends from approximately $6.60 on the downside to $12.66 on the upside. A OMER 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 OMER IV rank near 28.93% 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 OMER at 109.80%. As a Healthcare name, OMER options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OMER-specific events.

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

Frequently asked questions

What is a straddle on OMER?: A straddle on OMER is the straddle strategy applied to OMER (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 OMER stock trading near $9.63, the strikes shown on this page are snapped to the nearest listed OMER chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OMER 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 OMER straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 109.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$177.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OMER straddle?: The breakeven for the OMER straddle priced on this page is roughly $8.20 and $11.80 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 OMER market-implied 1-standard-deviation expected move is approximately 31.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on OMER?: Straddles on OMER are pure-volatility plays that profit from large moves in either direction; traders typically buy OMER 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 OMER implied volatility affect this straddle?: OMER ATM IV is at 109.80% with IV rank near 28.93%, 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.