PRIM Straddle Strategy
PRIM (Primoris Services Corporation), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation. The Pipeline Services segment offers a range of services comprising pipeline construction, maintenance, facility, and integrity services; installation of compressor and pump stations; and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities. The company was founded in 1960 and is headquartered in Dallas, Texas.
PRIM (Primoris Services Corporation) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $6.13B, a trailing P/E of 24.62, a beta of 1.51 versus the broader market, a 52-week range of 68.52-205.5, average daily share volume of 1.2M, a public-listing history dating back to 2008, approximately 16K full-time employees. These structural characteristics shape how PRIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.51 indicates PRIM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PRIM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on PRIM?
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 PRIM snapshot
As of May 14, 2026, spot at $116.16, ATM IV 53.60%, IV rank 29.69%, expected move 15.37%. The straddle on PRIM 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 PRIM specifically: PRIM IV at 53.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a PRIM straddle, with a market-implied 1-standard-deviation move of approximately 15.37% (roughly $17.85 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 PRIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRIM should anchor to the underlying notional of $116.16 per share and to the trader's directional view on PRIM stock.
PRIM straddle setup
The PRIM 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 PRIM near $116.16, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRIM 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 PRIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $115.00 | $6.80 |
| Buy 1 | Put | $115.00 | $8.35 |
PRIM straddle risk and reward
- Net Premium / Debit
- -$1,515.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,456.87
- Breakeven(s)
- $99.85, $130.15
- 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.
PRIM straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on PRIM. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$9,984.00 |
| $25.69 | -77.9% | +$7,415.75 |
| $51.38 | -55.8% | +$4,847.50 |
| $77.06 | -33.7% | +$2,279.25 |
| $102.74 | -11.6% | -$289.01 |
| $128.42 | +10.6% | -$172.74 |
| $154.11 | +32.7% | +$2,395.51 |
| $179.79 | +54.8% | +$4,963.76 |
| $205.47 | +76.9% | +$7,532.01 |
| $231.15 | +99.0% | +$10,100.26 |
When traders use straddle on PRIM
Straddles on PRIM are pure-volatility plays that profit from large moves in either direction; traders typically buy PRIM straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
PRIM thesis for this straddle
The market-implied 1-standard-deviation range for PRIM extends from approximately $98.31 on the downside to $134.01 on the upside. A PRIM 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 PRIM IV rank near 29.69% 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 PRIM at 53.60%. As a Industrials name, PRIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRIM-specific events.
PRIM 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. PRIM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRIM alongside the broader basket even when PRIM-specific fundamentals are unchanged. Always rebuild the position from current PRIM chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on PRIM?
- A straddle on PRIM is the straddle strategy applied to PRIM (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 PRIM stock trading near $116.16, the strikes shown on this page are snapped to the nearest listed PRIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PRIM 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 PRIM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 53.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,456.87 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PRIM straddle?
- The breakeven for the PRIM straddle priced on this page is roughly $99.85 and $130.15 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 PRIM market-implied 1-standard-deviation expected move is approximately 15.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on PRIM?
- Straddles on PRIM are pure-volatility plays that profit from large moves in either direction; traders typically buy PRIM 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 PRIM implied volatility affect this straddle?
- PRIM ATM IV is at 53.60% with IV rank near 29.69%, 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.