How are PSA 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 PSA straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,611.32 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSA straddle?

The breakeven for the PSA straddle priced on this page is roughly $313.15 and $346.85 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 PSA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSA implied volatility affect this straddle?

PSA ATM IV is at 20.30% with IV rank near 23.56%, 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.

PSA Straddle Strategy

PSA (Public Storage), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.

Public Storage (PSA), an esteemed Real Estate Investment Trust (REIT) and a constituent of both the S&P 500 and FT Global 500 indices, concentrates its operations on the acquisition, development, ownership, and management of self-storage properties. By September 30, 2020, the company's substantial holdings included 2,504 self-storage facilities located across 38 U.S. states, collectively providing around 171 million net rentable square feet. Additionally, Public Storage held an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR), an entity that owned and operated 239 self-storage sites under the Shurgard brand in seven Western European countries, encompassing approximately 13 million net rentable square feet. Concurrently, it maintained an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB), which, as of the same reporting date, managed roughly 28 million rentable square feet of commercial properties. The company's main office is situated in Glendale, California.

PSA (Public Storage) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $60.34B, a trailing P/E of 27.79, a beta of 0.95 versus the broader market, a 52-week range of 256.54-335.55, average daily share volume of 1.0M, a public-listing history dating back to 1980, approximately 6K full-time employees. These structural characteristics shape how PSA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.95 places PSA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PSA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on PSA?

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.

PSA snapshot

As of August 14, 2026, spot at $325.82, ATM IV 20.30%, IV rank 23.56%, expected move 5.82%. The straddle on PSA 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 PSA specifically: PSA IV at 20.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a PSA straddle, with a market-implied 1-standard-deviation move of approximately 5.82% (roughly $18.96 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 PSA expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSA should anchor to the underlying notional of $325.82 per share and to the trader's directional view on PSA stock.

PSA straddle setup

The PSA 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 PSA at $325.82 on that close, the first option leg uses a $330.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSA 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 PSA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$330.00	$6.25
Buy 1	Put	$330.00	$10.60

PSA straddle risk and reward

Net Premium / Debit: -$1,685.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,611.32
Breakeven(s): $313.15, $346.85
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.

PSA straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on PSA. 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%	+$31,314.00
$72.05	-77.9%	+$24,110.05
$144.09	-55.8%	+$16,906.10
$216.13	-33.7%	+$9,702.15
$288.17	-11.6%	+$2,498.20
$360.21	+10.6%	+$1,335.75
$432.25	+32.7%	+$8,539.70
$504.29	+54.8%	+$15,743.65
$576.33	+76.9%	+$22,947.60
$648.37	+99.0%	+$30,151.55

When traders use straddle on PSA

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

PSA thesis for this straddle

The market-implied 1-standard-deviation range for PSA extends from approximately $306.86 on the downside to $344.78 on the upside. A PSA 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 PSA IV rank near 23.56% 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 PSA at 20.30%. As a Real Estate name, PSA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSA-specific events.

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

Frequently asked questions

What is a straddle on PSA?: A straddle on PSA is the straddle strategy applied to PSA (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 PSA stock at $325.82 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PSA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PSA 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 PSA straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,611.32 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSA straddle?: The breakeven for the PSA straddle priced on this page is roughly $313.15 and $346.85 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 PSA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on PSA?: Straddles on PSA are pure-volatility plays that profit from large moves in either direction; traders typically buy PSA 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 PSA implied volatility affect this straddle?: PSA ATM IV is at 20.30% with IV rank near 23.56%, 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.