How are RNG 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 RNG straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 63.01%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$566.49 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RNG straddle?

The breakeven for the RNG straddle priced on this page is roughly $35.33 and $46.68 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 RNG market-implied 1-standard-deviation expected move is approximately 18.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RNG implied volatility affect this straddle?

RNG ATM IV is at 63.01% with IV rank near 61.32%, 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.

RNG Straddle Strategy

RNG (RingCentral, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.

RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. The company offers business cloud communications and contact center solutions based on its Message Video Phone? platform. Its products include RingCentral Office that provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers omni-channel; and RingCentral Engage Digital, a digital customer engagement platform that allows enterprises to interact with their customers. The company's products also comprise RingCentral Engage Voice, a cloud-based outbound/blended customer engagement platform for midsize and enterprise companies; RingCentral Video, a video meeting service which includes our RCV video and team messaging capabilities and offers video and audio conferencing, file sharing, contact, task, and calendar management. In addition, it offers RingCentral Professional, a cloud based virtual telephone service that provides inbound call answering and management services for professionals; and RingCentral Fax that provides online fax capabilities. The company serves a range of industries, including financial services, education, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, as well as others.

RNG (RingCentral, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.40B, a trailing P/E of 38.88, a beta of 1.13 versus the broader market, a 52-week range of 23.59-48.57, average daily share volume of 2.3M, a public-listing history dating back to 2013, approximately 4K full-time employees. These structural characteristics shape how RNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.13 places RNG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 38.88 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. RNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on RNG?

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 RNG snapshot

As of May 15, 2026, spot at $40.78, ATM IV 63.01%, IV rank 61.32%, expected move 18.07%. The straddle on RNG 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 28-day expiry.

Why this straddle structure on RNG specifically: RNG IV at 63.01% 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 18.07% (roughly $7.37 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on RNG should anchor to the underlying notional of $40.78 per share and to the trader's directional view on RNG stock.

RNG straddle setup

The RNG 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 RNG near $40.78, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RNG chain at a 28-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 RNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$41.00	$2.83
Buy 1	Put	$41.00	$2.85

RNG straddle risk and reward

Net Premium / Debit: -$567.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$566.49
Breakeven(s): $35.33, $46.68
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.

RNG straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on RNG. 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%	+$3,531.50
$9.03	-77.9%	+$2,629.94
$18.04	-55.8%	+$1,728.38
$27.06	-33.7%	+$826.83
$36.07	-11.5%	-$74.73
$45.09	+10.6%	-$158.71
$54.10	+32.7%	+$742.85
$63.12	+54.8%	+$1,644.40
$72.13	+76.9%	+$2,545.96
$81.15	+99.0%	+$3,447.52

When traders use straddle on RNG

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

RNG thesis for this straddle

The market-implied 1-standard-deviation range for RNG extends from approximately $33.41 on the downside to $48.15 on the upside. A RNG 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 RNG IV rank near 61.32% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on RNG should anchor more to the directional view and the expected-move geometry. As a Technology name, RNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RNG-specific events.

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

Frequently asked questions

What is a straddle on RNG?: A straddle on RNG is the straddle strategy applied to RNG (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 RNG stock trading near $40.78, the strikes shown on this page are snapped to the nearest listed RNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RNG 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 RNG straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 63.01%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$566.49 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RNG straddle?: The breakeven for the RNG straddle priced on this page is roughly $35.33 and $46.68 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 RNG market-implied 1-standard-deviation expected move is approximately 18.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on RNG?: Straddles on RNG are pure-volatility plays that profit from large moves in either direction; traders typically buy RNG 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 RNG implied volatility affect this straddle?: RNG ATM IV is at 63.01% with IV rank near 61.32%, 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.