How are PAYX 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 PAYX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 28.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,142.74 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PAYX straddle?

The breakeven for the PAYX straddle priced on this page is roughly $88.40 and $111.60 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 PAYX market-implied 1-standard-deviation expected move is approximately 8.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PAYX implied volatility affect this straddle?

PAYX ATM IV is at 28.20% with IV rank near 39.25%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

PAYX Straddle Strategy

PAYX (Paychex, Inc.), in the Industrials sector, (Staffing & Employment Services industry), listed on NASDAQ.

Founded in 1971 and headquartered in Rochester, New York, Paychex, Inc. delivers comprehensive human capital management (HCM) solutions. The company primarily serves small to medium-sized enterprises (SMEs) across the United States, Europe, and India, addressing their needs in human resources, payroll administration, employee benefits, and insurance. Its diverse service portfolio includes: Payroll Management: Encompassing core payroll processing, payroll tax administration, employee payment facilitation, and ensuring compliance with regulations like new-hire reporting and garnishment processing. Human Resources Solutions: Providing support for employer compliance, HR and employee benefits administration, risk management outsourcing, and even the availability of professionally trained on-site HR representatives. Retirement Services: Offering full administration for retirement plans, which covers implementation, ongoing adherence to government regulations, reporting for both participants and employers, online access capabilities, electronic funds transfers, and other administrative tasks. Cloud-based HR Software: A suite of software products designed for efficient HR administration, including tools for benefits management, time and attendance tracking, digital communication, recruitment, and onboarding processes.

PAYX (Paychex, Inc.) trades in the Industrials sector, specifically Staffing & Employment Services, with a market capitalization of approximately $35.79B, a trailing P/E of 20.30, a beta of 0.83 versus the broader market, a 52-week range of 85.45-148.76, average daily share volume of 3.5M, a public-listing history dating back to 1983, approximately 17K full-time employees. These structural characteristics shape how PAYX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.83 places PAYX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PAYX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on PAYX?

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 PAYX snapshot

As of June 30, 2026, spot at $98.34, ATM IV 28.20%, IV rank 39.25%, expected move 8.08%. The straddle on PAYX 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 80-day expiry.

Why this straddle structure on PAYX specifically: PAYX IV at 28.20% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 8.08% (roughly $7.95 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PAYX expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAYX should anchor to the underlying notional of $98.34 per share and to the trader's directional view on PAYX stock.

PAYX straddle setup

The PAYX 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 PAYX near $98.34, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAYX chain at a 80-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 PAYX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$100.00	$4.85
Buy 1	Put	$100.00	$6.75

PAYX straddle risk and reward

Net Premium / Debit: -$1,160.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,142.74
Breakeven(s): $88.40, $111.60
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.

PAYX straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on PAYX. 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	-100.0%	+$8,839.00
$21.75	-77.9%	+$6,664.76
$43.49	-55.8%	+$4,490.52
$65.24	-33.7%	+$2,316.28
$86.98	-11.6%	+$142.04
$108.72	+10.6%	-$287.79
$130.46	+32.7%	+$1,886.45
$152.21	+54.8%	+$4,060.69
$173.95	+76.9%	+$6,234.93
$195.69	+99.0%	+$8,409.17

When traders use straddle on PAYX

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

PAYX thesis for this straddle

The market-implied 1-standard-deviation range for PAYX extends from approximately $90.39 on the downside to $106.29 on the upside. A PAYX 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 PAYX IV rank near 39.25% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on PAYX should anchor more to the directional view and the expected-move geometry. As a Industrials name, PAYX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAYX-specific events.

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

Frequently asked questions

What is a straddle on PAYX?: A straddle on PAYX is the straddle strategy applied to PAYX (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 PAYX stock trading near $98.34, the strikes shown on this page are snapped to the nearest listed PAYX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PAYX 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 PAYX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 28.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,142.74 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PAYX straddle?: The breakeven for the PAYX straddle priced on this page is roughly $88.40 and $111.60 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 PAYX market-implied 1-standard-deviation expected move is approximately 8.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on PAYX?: Straddles on PAYX are pure-volatility plays that profit from large moves in either direction; traders typically buy PAYX 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 PAYX implied volatility affect this straddle?: PAYX ATM IV is at 28.20% with IV rank near 39.25%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.