How are PCAR 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 PCAR straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$854.21 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PCAR straddle?

The breakeven for the PCAR straddle priced on this page is roughly $121.35 and $138.65 at expiration, derived from the August 14, 2026 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 PCAR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PCAR implied volatility affect this straddle?

PCAR ATM IV is at 25.80% with IV rank near 1.52%, 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.

PCAR Straddle Strategy

PCAR (PACCAR Inc), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.

PACCAR Inc is a global leader specializing in the design, production, and distribution of commercial trucks, covering light, medium, and heavy-duty classes. Its market reach extends across the United States, Europe, Mexico, South America, Australia, and other international territories. The company's operations are divided into three principal segments: Truck, Parts, and Financial Services. The Truck division focuses on engineering, manufacturing, and supplying vehicles tailored for both long-distance highway travel and challenging off-highway applications, primarily for hauling commercial and consumer goods. These vehicles are sold worldwide through an expansive network of independent dealerships, prominently featuring the Kenworth, Peterbilt, and DAF brands. The Parts segment is dedicated to supplying aftermarket components for its trucks and associated commercial vehicles.

PCAR (PACCAR Inc) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $68.99B, a trailing P/E of 27.58, a beta of 0.99 versus the broader market, a 52-week range of 92.25-139.24, average daily share volume of 3.2M, a public-listing history dating back to 1980, approximately 26K full-time employees. These structural characteristics shape how PCAR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.99 places PCAR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PCAR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on PCAR?

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.

PCAR snapshot

As of August 14, 2026, spot at $130.76, ATM IV 25.80%, IV rank 1.52%, expected move 7.40%. The straddle on PCAR below is built from the August 14, 2026 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 PCAR specifically: PCAR IV at 25.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a PCAR straddle, with a market-implied 1-standard-deviation move of approximately 7.40% (roughly $9.67 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 PCAR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PCAR should anchor to the underlying notional of $130.76 per share and to the trader's directional view on PCAR stock.

PCAR straddle setup

The PCAR straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PCAR at $130.76 on that close, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PCAR 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 PCAR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$130.00	$4.70
Buy 1	Put	$130.00	$3.95

PCAR straddle risk and reward

Net Premium / Debit: -$865.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$854.21
Breakeven(s): $121.35, $138.65
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.

PCAR straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on PCAR. 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%	+$12,134.00
$28.92	-77.9%	+$9,242.93
$57.83	-55.8%	+$6,351.87
$86.74	-33.7%	+$3,460.80
$115.65	-11.6%	+$569.74
$144.56	+10.6%	+$591.33
$173.47	+32.7%	+$3,482.39
$202.38	+54.8%	+$6,373.46
$231.30	+76.9%	+$9,264.52
$260.21	+99.0%	+$12,155.59

When traders use straddle on PCAR

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

PCAR thesis for this straddle

The market-implied 1-standard-deviation range for PCAR extends from approximately $121.09 on the downside to $140.43 on the upside. A PCAR 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 PCAR IV rank near 1.52% 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 PCAR at 25.80%. As a Industrials name, PCAR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PCAR-specific events.

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

Frequently asked questions

What is a straddle on PCAR?: A straddle on PCAR is the straddle strategy applied to PCAR (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 PCAR stock at $130.76 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PCAR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PCAR 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 PCAR straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$854.21 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PCAR straddle?: The breakeven for the PCAR straddle priced on this page is roughly $121.35 and $138.65 at expiration, derived from the August 14, 2026 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 PCAR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on PCAR?: Straddles on PCAR are pure-volatility plays that profit from large moves in either direction; traders typically buy PCAR 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 PCAR implied volatility affect this straddle?: PCAR ATM IV is at 25.80% with IV rank near 1.52%, 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.