How are PRGS 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 PRGS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 77.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,148.71 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PRGS straddle?

The breakeven for the PRGS straddle priced on this page is roughly $20.95 and $44.05 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 PRGS market-implied 1-standard-deviation expected move is approximately 22.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PRGS implied volatility affect this straddle?

PRGS ATM IV is at 77.40% with IV rank near 68.75%, 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.

PRGS Straddle Strategy

PRGS (Progress Software Corporation), in the Technology sector, (Software - Application industry), listed on NASDAQ.

Progress Software Corporation (PRGS) specializes in providing technology solutions that enable businesses to create, launch, and oversee their software applications. The company's extensive product suite includes: OpenEdge, a powerful development platform used to construct secure, multi-language applications that can be deployed across diverse platforms, devices, and cloud infrastructures. A comprehensive set of developer tools offering user interface (UI) components for building web, mobile, desktop, chat, and augmented/virtual reality (AR/VR) applications, alongside automated testing and reporting utilities. Sitefinity, which serves as a unified platform for managing web content and performing in-depth customer analytics. Corticon, a business rules management system designed to infuse applications with decision automation, efficient change processes, and valuable insights. DataDirect Connect, ensuring seamless data connectivity between applications running on various platforms through industry-standard interfaces.

PRGS (Progress Software Corporation) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $1.39B, a trailing P/E of 16.44, a beta of 0.83 versus the broader market, a 52-week range of 23.82-65.5, average daily share volume of 867K, a public-listing history dating back to 1991, approximately 3K full-time employees. These structural characteristics shape how PRGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

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

What is a straddle on PRGS?

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 PRGS snapshot

As of June 26, 2026, spot at $32.27, ATM IV 77.40%, IV rank 68.75%, expected move 22.19%. The straddle on PRGS 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 172-day expiry.

Why this straddle structure on PRGS specifically: PRGS IV at 77.40% 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 22.19% (roughly $7.16 on the underlying). The 172-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRGS should anchor to the underlying notional of $32.27 per share and to the trader's directional view on PRGS stock.

PRGS straddle setup

The PRGS 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 PRGS near $32.27, the first option leg uses a $32.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRGS chain at a 172-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 PRGS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$32.50	$6.75
Buy 1	Put	$32.50	$4.80

PRGS straddle risk and reward

Net Premium / Debit: -$1,155.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,148.71
Breakeven(s): $20.95, $44.05
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.

PRGS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on PRGS. 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%	+$2,094.00
$7.14	-77.9%	+$1,380.60
$14.28	-55.8%	+$667.21
$21.41	-33.6%	-$46.19
$28.55	-11.5%	-$759.59
$35.68	+10.6%	-$837.02
$42.81	+32.7%	-$123.62
$49.95	+54.8%	+$589.78
$57.08	+76.9%	+$1,303.18
$64.22	+99.0%	+$2,016.57

When traders use straddle on PRGS

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

PRGS thesis for this straddle

The market-implied 1-standard-deviation range for PRGS extends from approximately $25.11 on the downside to $39.43 on the upside. A PRGS 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 PRGS IV rank near 68.75% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on PRGS should anchor more to the directional view and the expected-move geometry. As a Technology name, PRGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRGS-specific events.

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

Frequently asked questions

What is a straddle on PRGS?: A straddle on PRGS is the straddle strategy applied to PRGS (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 PRGS stock trading near $32.27, the strikes shown on this page are snapped to the nearest listed PRGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PRGS 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 PRGS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 77.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,148.71 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PRGS straddle?: The breakeven for the PRGS straddle priced on this page is roughly $20.95 and $44.05 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 PRGS market-implied 1-standard-deviation expected move is approximately 22.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on PRGS?: Straddles on PRGS are pure-volatility plays that profit from large moves in either direction; traders typically buy PRGS 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 PRGS implied volatility affect this straddle?: PRGS ATM IV is at 77.40% with IV rank near 68.75%, 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.