OVID Straddle Strategy
OVID (Ovid Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Ovid Therapeutics Inc., a biopharmaceutical company, develops impactful medicines for patients and families with neurological disorders in the United States. The company is developing OV101, a drug candidate, which is in Phase 2A clinical trials for the treatment of fragile X syndrome; OV329, a GABA aminotransferase inhibitor for the treatment of seizures associated with tuberous sclerosis complex and infantile spasms; and OV350, a small molecule for treating epilepsies. It also develops OV882, a short hairpin RNA gene therapy for the treatment of angelman syndrome; and OV815 for the treatment of kinesin-family of proteins associated neurological disorder. The company has license and collaboration agreements with Healx, AstraZeneca AB, H. Lundbeck A/S, and Northwestern University, as well as Marinus Pharmaceuticals, Inc. The company was incorporated in 2014 and is headquartered in New York, New York.
OVID (Ovid Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $369.3M, a beta of 0.18 versus the broader market, a 52-week range of 0.27-3.105, average daily share volume of 3.2M, a public-listing history dating back to 2017, approximately 23 full-time employees. These structural characteristics shape how OVID stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.18 indicates OVID 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 OVID?
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 OVID snapshot
As of May 15, 2026, spot at $2.65, ATM IV 104.00%, IV rank 17.74%, expected move 29.82%. The straddle on OVID 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 OVID specifically: OVID IV at 104.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a OVID straddle, with a market-implied 1-standard-deviation move of approximately 29.82% (roughly $0.79 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 OVID expiries trade a higher absolute premium for lower per-day decay. Position sizing on OVID should anchor to the underlying notional of $2.65 per share and to the trader's directional view on OVID stock.
OVID straddle setup
The OVID 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 OVID near $2.65, the first option leg uses a $2.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OVID 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 OVID shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.65 | N/A |
| Buy 1 | Put | $2.65 | N/A |
OVID 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.
OVID straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on OVID. 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 OVID
Straddles on OVID are pure-volatility plays that profit from large moves in either direction; traders typically buy OVID straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
OVID thesis for this straddle
The market-implied 1-standard-deviation range for OVID extends from approximately $1.86 on the downside to $3.44 on the upside. A OVID 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 OVID IV rank near 17.74% 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 OVID at 104.00%. As a Healthcare name, OVID options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OVID-specific events.
OVID 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. OVID positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OVID alongside the broader basket even when OVID-specific fundamentals are unchanged. Always rebuild the position from current OVID chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on OVID?
- A straddle on OVID is the straddle strategy applied to OVID (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 OVID stock trading near $2.65, the strikes shown on this page are snapped to the nearest listed OVID chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OVID 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 OVID straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 104.00%), 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 OVID straddle?
- The breakeven for the OVID 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 OVID market-implied 1-standard-deviation expected move is approximately 29.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on OVID?
- Straddles on OVID are pure-volatility plays that profit from large moves in either direction; traders typically buy OVID 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 OVID implied volatility affect this straddle?
- OVID ATM IV is at 104.00% with IV rank near 17.74%, 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.