How are RCLY 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 RCLY straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 15.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$313.68 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RCLY straddle?

The breakeven for the RCLY straddle priced on this page is roughly $97.50 and $104.50 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 RCLY market-implied 1-standard-deviation expected move is approximately 4.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RCLY implied volatility affect this straddle?

Current RCLY ATM IV is 15.10%; IV rank context is unavailable in the current snapshot.

RCLY Straddle Strategy

RCLY (Reckoner BBB-B CLO Annual ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

RCLY is a feeder fund that provides leveraged exposure to CLO tranches rated as BBB+ to B- by investing exclusively in its master fund, the Reckoner BBB-B CLO ETF (RCLO). The underlying ETF, RCLO, primarily focuses on floating-rate CLOs within its target rating range but may invest up to 70% in CLOs rated BB+ or lower, and up to 10% in CLOs rated above BBB+. Investments could be of any maturity, purchased from both primary and secondary markets. It applies a bottom-up approach to select investments by reviewing documentation on an issuers management, individual CLO structure and collateral, ability to meet obligations, cash flow, and trading frequency. RCLY makes a single annual dividend payment, offering tax efficiency, compounding potential, and the opportunity to maximize long-term total return.

RCLY (Reckoner BBB-B CLO Annual ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $12.6M, a beta of 0.07 versus the broader market, a 52-week range of 96.37-100.94, average daily share volume of 0K, a public-listing history dating back to 2026, approximately 320 full-time employees. These structural characteristics shape how RCLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.07 indicates RCLY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a straddle on RCLY?

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 RCLY snapshot

As of June 29, 2026, spot at $101.14, ATM IV 15.10%, expected move 4.33%. The straddle on RCLY 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 53-day expiry.

Why this straddle structure on RCLY specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RCLY is inferred from ATM IV at 15.10% alone, with a market-implied 1-standard-deviation move of approximately 4.33% (roughly $4.38 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RCLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RCLY should anchor to the underlying notional of $101.14 per share and to the trader's directional view on RCLY stock.

RCLY straddle setup

The RCLY 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 RCLY near $101.14, the first option leg uses a $101.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RCLY chain at a 53-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 RCLY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$101.00	$2.08
Buy 1	Put	$101.00	$1.42

RCLY straddle risk and reward

Net Premium / Debit: -$350.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$313.68
Breakeven(s): $97.50, $104.50
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.

RCLY straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on RCLY. 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%	+$9,749.00
$22.37	-77.9%	+$7,512.85
$44.73	-55.8%	+$5,276.70
$67.09	-33.7%	+$3,040.55
$89.46	-11.6%	+$804.40
$111.82	+10.6%	+$731.75
$134.18	+32.7%	+$2,967.90
$156.54	+54.8%	+$5,204.06
$178.90	+76.9%	+$7,440.21
$201.26	+99.0%	+$9,676.36

When traders use straddle on RCLY

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

RCLY thesis for this straddle

The market-implied 1-standard-deviation range for RCLY extends from approximately $96.76 on the downside to $105.52 on the upside. A RCLY 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. As a Financial Services name, RCLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RCLY-specific events.

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

Frequently asked questions

What is a straddle on RCLY?: A straddle on RCLY is the straddle strategy applied to RCLY (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 RCLY stock trading near $101.14, the strikes shown on this page are snapped to the nearest listed RCLY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RCLY 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 RCLY straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 15.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$313.68 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RCLY straddle?: The breakeven for the RCLY straddle priced on this page is roughly $97.50 and $104.50 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 RCLY market-implied 1-standard-deviation expected move is approximately 4.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on RCLY?: Straddles on RCLY are pure-volatility plays that profit from large moves in either direction; traders typically buy RCLY 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 RCLY implied volatility affect this straddle?: Current RCLY ATM IV is 15.10%; IV rank context is unavailable in the current snapshot.