RMAX Straddle Strategy
RMAX (RE/MAX Holdings, Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NYSE.
RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. The company operates through three segments: Real Estate, Mortgage, and Marketing Funds. It offers real estate brokerage franchising services under the RE/MAX brand; mortgage brokerage services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand; and mortgage loan processing software and services under the wemlo brand. In addition, the company provides First mobile app, which integrates a suite of digital products that enables agents, brokers, and teams to establish and manage client relationships; RE/MAX University platform, a learning hub designed to help each agent in their professional expertise; and Booj platform. The company was founded in 1973 and is headquartered in Denver, Colorado.
RMAX (RE/MAX Holdings, Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $185.7M, a trailing P/E of 510.63, a beta of 1.90 versus the broader market, a 52-week range of 5.46-11.62, average daily share volume of 690K, a public-listing history dating back to 2013, approximately 536 full-time employees. These structural characteristics shape how RMAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.90 indicates RMAX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 510.63 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a straddle on RMAX?
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 RMAX snapshot
As of May 15, 2026, spot at $9.00, ATM IV 68.90%, IV rank 17.29%, expected move 19.75%. The straddle on RMAX 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 RMAX specifically: RMAX IV at 68.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a RMAX straddle, with a market-implied 1-standard-deviation move of approximately 19.75% (roughly $1.78 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 RMAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on RMAX should anchor to the underlying notional of $9.00 per share and to the trader's directional view on RMAX stock.
RMAX straddle setup
The RMAX 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 RMAX near $9.00, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RMAX 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 RMAX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.00 | N/A |
| Buy 1 | Put | $9.00 | N/A |
RMAX 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.
RMAX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on RMAX. 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 RMAX
Straddles on RMAX are pure-volatility plays that profit from large moves in either direction; traders typically buy RMAX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
RMAX thesis for this straddle
The market-implied 1-standard-deviation range for RMAX extends from approximately $7.22 on the downside to $10.78 on the upside. A RMAX 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 RMAX IV rank near 17.29% 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 RMAX at 68.90%. As a Real Estate name, RMAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RMAX-specific events.
RMAX 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. RMAX positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RMAX alongside the broader basket even when RMAX-specific fundamentals are unchanged. Always rebuild the position from current RMAX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on RMAX?
- A straddle on RMAX is the straddle strategy applied to RMAX (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 RMAX stock trading near $9.00, the strikes shown on this page are snapped to the nearest listed RMAX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RMAX 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 RMAX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 68.90%), 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 RMAX straddle?
- The breakeven for the RMAX straddle priced on this page is no defined breakeven on the modeled curve 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 RMAX market-implied 1-standard-deviation expected move is approximately 19.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on RMAX?
- Straddles on RMAX are pure-volatility plays that profit from large moves in either direction; traders typically buy RMAX 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 RMAX implied volatility affect this straddle?
- RMAX ATM IV is at 68.90% with IV rank near 17.29%, 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.