PROK Straddle Strategy
PROK (ProKidney Corp.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ProKidney Corp. is a biotechnology firm currently in the clinical trial phase, specializing in the development of innovative cell-based treatments. Their flagship product is Renal Autologous Cell Therapy (RAC-T), a unique cellular admixture derived from a patient's own cells. RAC-T is undergoing significant clinical evaluation; it is concurrently in Phase III and Phase II trials for individuals with moderate to severe diabetic kidney disease. Furthermore, the company is conducting a Phase I clinical trial to assess RAC-T's potential for patients born with congenital anomalies affecting the kidneys and urinary tract. The company was established in 2015 and operates from its headquarters in Winston-Salem, North Carolina.
PROK (ProKidney Corp.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $497.7M, a beta of 1.72 versus the broader market, a 52-week range of 1.41-3.48, average daily share volume of 1.1M, a public-listing history dating back to 2021, approximately 231 full-time employees. These structural characteristics shape how PROK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.72 indicates PROK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a straddle on PROK?
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.
PROK snapshot
As of August 14, 2026, spot at $1.31, ATM IV 238.60%, IV rank 49.30%, expected move 68.40%. The straddle on PROK 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 PROK specifically: PROK IV at 238.60% 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 68.40% (roughly $0.90 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 PROK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PROK should anchor to the underlying notional of $1.31 per share and to the trader's directional view on PROK stock.
PROK straddle setup
The PROK 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 PROK at $1.31 on that close, the first option leg uses a $1.31 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PROK 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 PROK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.31 | N/A |
| Buy 1 | Put | $1.31 | N/A |
PROK 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.
PROK straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on PROK. 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 PROK
Straddles on PROK are pure-volatility plays that profit from large moves in either direction; traders typically buy PROK straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
PROK thesis for this straddle
The market-implied 1-standard-deviation range for PROK extends from approximately $0.41 on the downside to $2.21 on the upside. A PROK 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 PROK IV rank near 49.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on PROK should anchor more to the directional view and the expected-move geometry. As a Healthcare name, PROK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PROK-specific events.
PROK 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. PROK positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PROK alongside the broader basket even when PROK-specific fundamentals are unchanged. Always rebuild the position from current PROK chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on PROK?
- A straddle on PROK is the straddle strategy applied to PROK (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 PROK stock at $1.31 on the most recent close, the strikes shown on this page are snapped to the nearest listed PROK chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PROK 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 PROK straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 238.60%), 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 PROK straddle?
- The breakeven for the PROK 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 PROK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 68.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on PROK?
- Straddles on PROK are pure-volatility plays that profit from large moves in either direction; traders typically buy PROK 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 PROK implied volatility affect this straddle?
- PROK ATM IV is at 238.60% with IV rank near 49.30%, 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.