PKOH Straddle Strategy
PKOH (Park-Ohio Holdings Corp.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Park-Ohio Holdings Corp. is a global, diversified industrial company that delivers specialized supply chain management solutions, sophisticated capital equipment, and precision-manufactured components. Its operations span across the United States, Europe, Asia, Mexico, Canada, and other international territories. The company's activities are organized into three primary segments: Supply Technologies, Assembly Components, and Engineered Products. The Supply Technologies division provides extensive supply management services, encompassing everything from engineering and design consultation, part usage and cost analysis, and supplier vetting, to quality assurance, barcoding, product packaging and tracking, just-in-time and point-of-use delivery, electronic invoicing, and ongoing technical support. This segment also supplies spare and aftermarket parts, as well as various production components such as valves, fuel hose assemblies, electro-mechanical hardware, and steering components. Furthermore, it engineers and produces high-precision cold-formed and cold-extruded fasteners, including specific items like locknuts, SPAC nuts, and wheel hardware.
PKOH (Park-Ohio Holdings Corp.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $711.0M, a trailing P/E of 25.14, a beta of 1.20 versus the broader market, a 52-week range of 18.06-53.3, average daily share volume of 76K, a public-listing history dating back to 1973, approximately 6K full-time employees. These structural characteristics shape how PKOH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.20 places PKOH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PKOH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on PKOH?
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.
PKOH snapshot
As of August 14, 2026, spot at $48.77, ATM IV 47.90%, IV rank 6.52%, expected move 13.73%. The straddle on PKOH 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 PKOH specifically: PKOH IV at 47.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a PKOH straddle, with a market-implied 1-standard-deviation move of approximately 13.73% (roughly $6.70 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 PKOH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PKOH should anchor to the underlying notional of $48.77 per share and to the trader's directional view on PKOH stock.
PKOH straddle setup
The PKOH 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 PKOH at $48.77 on that close, the first option leg uses a $48.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PKOH 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 PKOH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $48.77 | N/A |
| Buy 1 | Put | $48.77 | N/A |
PKOH 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.
PKOH straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on PKOH. 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 PKOH
Straddles on PKOH are pure-volatility plays that profit from large moves in either direction; traders typically buy PKOH straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
PKOH thesis for this straddle
The market-implied 1-standard-deviation range for PKOH extends from approximately $42.07 on the downside to $55.47 on the upside. A PKOH 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 PKOH IV rank near 6.52% 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 PKOH at 47.90%. As a Industrials name, PKOH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PKOH-specific events.
PKOH 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. PKOH positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PKOH alongside the broader basket even when PKOH-specific fundamentals are unchanged. Always rebuild the position from current PKOH chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on PKOH?
- A straddle on PKOH is the straddle strategy applied to PKOH (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 PKOH stock at $48.77 on the most recent close, the strikes shown on this page are snapped to the nearest listed PKOH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PKOH 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 PKOH straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 47.90%), 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 PKOH straddle?
- The breakeven for the PKOH 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 PKOH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on PKOH?
- Straddles on PKOH are pure-volatility plays that profit from large moves in either direction; traders typically buy PKOH 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 PKOH implied volatility affect this straddle?
- PKOH ATM IV is at 47.90% with IV rank near 6.52%, 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.