PAVM Straddle Strategy
PAVM (PAVmed Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
PAVmed Inc. operates as a medical device company in the United States. The company's lead products include CarpX, a percutaneous device to treat carpal tunnel syndrome; and EsoCheck, an esophageal cell collection device for the early detection of adenocarcinoma of the esophagus and Barrett's Esophagus (BE); and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay. Its product pipeline also comprises EsoCure, an esophageal ablation device to treat dysplastic BE; PortIO, an implantable intraosseous vascular access device; NextFlo, a disposable infusion platform technology; Veris cancer healthcare platform and implantable intelligent vascular port combining remote monitoring and data analytics; NextVent single-use ventilators; FlexMO medical circulatory support cannulas; Veris cardiac monitors; DisappEAR resorbable pediatric ear tubes; Solys noninvasive glucose monitoring. The company was formerly known as PAXmed Inc. and changed its name to PAVmed Inc. in April 2015. PAVmed Inc. was incorporated in 2014 and is headquartered in New York, New York.
PAVM (PAVmed Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $3.4M, a trailing P/E of 12.17, a beta of 0.64 versus the broader market, a 52-week range of 6-28.44, average daily share volume of 24K, a public-listing history dating back to 2016, approximately 39 full-time employees. These structural characteristics shape how PAVM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates PAVM 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 PAVM?
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 PAVM snapshot
As of May 15, 2026, spot at $6.57, ATM IV 124.90%, IV rank 21.13%, expected move 35.81%. The straddle on PAVM 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 PAVM specifically: PAVM IV at 124.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a PAVM straddle, with a market-implied 1-standard-deviation move of approximately 35.81% (roughly $2.35 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 PAVM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAVM should anchor to the underlying notional of $6.57 per share and to the trader's directional view on PAVM stock.
PAVM straddle setup
The PAVM 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 PAVM near $6.57, the first option leg uses a $6.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAVM 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 PAVM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.57 | N/A |
| Buy 1 | Put | $6.57 | N/A |
PAVM 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.
PAVM straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on PAVM. 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 PAVM
Straddles on PAVM are pure-volatility plays that profit from large moves in either direction; traders typically buy PAVM straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
PAVM thesis for this straddle
The market-implied 1-standard-deviation range for PAVM extends from approximately $4.22 on the downside to $8.92 on the upside. A PAVM 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 PAVM IV rank near 21.13% 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 PAVM at 124.90%. As a Healthcare name, PAVM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAVM-specific events.
PAVM 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. PAVM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PAVM alongside the broader basket even when PAVM-specific fundamentals are unchanged. Always rebuild the position from current PAVM chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on PAVM?
- A straddle on PAVM is the straddle strategy applied to PAVM (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 PAVM stock trading near $6.57, the strikes shown on this page are snapped to the nearest listed PAVM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PAVM 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 PAVM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 124.90%), 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 PAVM straddle?
- The breakeven for the PAVM 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 PAVM market-implied 1-standard-deviation expected move is approximately 35.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on PAVM?
- Straddles on PAVM are pure-volatility plays that profit from large moves in either direction; traders typically buy PAVM 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 PAVM implied volatility affect this straddle?
- PAVM ATM IV is at 124.90% with IV rank near 21.13%, 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.