OMEX Straddle Strategy
OMEX (Odyssey Marine Exploration, Inc.), in the Industrials sector, (Specialty Business Services industry), listed on NASDAQ.
Odyssey Marine Exploration, Inc., operating through its various subsidiaries, specializes in the worldwide identification, validation, and development of subsea resources. The company offers expert services to its clients, including specialized oceanic mineral prospecting, comprehensive project execution, and general marine support. Furthermore, they provide a range of consulting services such as resource evaluation, meticulous project planning, scientific research, and overall project management. The firm was established in 1986 and its principal corporate offices are situated in Tampa, Florida.
OMEX (Odyssey Marine Exploration, Inc.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $49.8M, a beta of -0.15 versus the broader market, a 52-week range of 0.585-4.43, average daily share volume of 681K, a public-listing history dating back to 1999, approximately 12 full-time employees. These structural characteristics shape how OMEX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.15 indicates OMEX 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 OMEX?
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.
OMEX snapshot
As of August 14, 2026, spot at $0.91, ATM IV 418.80%, IV rank 90.18%, expected move 120.07%. The straddle on OMEX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this straddle structure on OMEX specifically: OMEX IV at 418.80% is rich versus its 1-year range, which makes a premium-buying OMEX straddle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 120.07% (roughly $1.09 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OMEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on OMEX should anchor to the underlying notional of $0.91 per share and to the trader's directional view on OMEX stock.
OMEX straddle setup
The OMEX 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 OMEX at $0.91 on that close, the first option leg uses a $0.91 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OMEX chain at a 35-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 OMEX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.91 | N/A |
| Buy 1 | Put | $0.91 | N/A |
OMEX 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.
OMEX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on OMEX. 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 OMEX
Straddles on OMEX are pure-volatility plays that profit from large moves in either direction; traders typically buy OMEX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
OMEX thesis for this straddle
The market-implied 1-standard-deviation range for OMEX extends from approximately $-0.18 on the downside to $2.00 on the upside. A OMEX 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 OMEX IV rank near 90.18% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on OMEX at 418.80%. As a Industrials name, OMEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OMEX-specific events.
OMEX 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. OMEX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OMEX alongside the broader basket even when OMEX-specific fundamentals are unchanged. Always rebuild the position from current OMEX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on OMEX?
- A straddle on OMEX is the straddle strategy applied to OMEX (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 OMEX stock at $0.91 on the most recent close, the strikes shown on this page are snapped to the nearest listed OMEX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are OMEX 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 OMEX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 418.80%), 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 OMEX straddle?
- The breakeven for the OMEX straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The OMEX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 120.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on OMEX?
- Straddles on OMEX are pure-volatility plays that profit from large moves in either direction; traders typically buy OMEX 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 OMEX implied volatility affect this straddle?
- OMEX ATM IV is at 418.80% with IV rank near 90.18%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.