How are ROIV 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 ROIV straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 45.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$288.91 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ROIV straddle?

The breakeven for the ROIV straddle priced on this page is roughly $32.03 and $37.98 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 ROIV market-implied 1-standard-deviation expected move is approximately 13.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ROIV implied volatility affect this straddle?

ROIV ATM IV is at 45.50% with IV rank near 36.78%, 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.

ROIV Straddle Strategy

ROIV (Roivant Sciences Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Roivant Sciences Ltd. is a biopharmaceutical and healthcare technology company dedicated to discovering and advancing innovative therapeutic drugs. The firm's development pipeline targets a broad spectrum of diseases, including various forms of solid tumors and oncologic malignancies, hematological disorders like sickle cell disease and warm autoimmune hemolytic anemia, as well as rare conditions such as hypophosphatasia. Additionally, Roivant is developing treatments for immunological and dermatological ailments, including psoriasis, atopic dermatitis, vitiligo, hyperhidrosis, acne, myasthenia gravis, thyroid eye diseases, and sarcoidosis, alongside tackling infections like staph aureus bacteremia. Founded in 2014, its operations are based in London, United Kingdom.

ROIV (Roivant Sciences Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $24.51B, a beta of 1.14 versus the broader market, a 52-week range of 10.705-34.68, average daily share volume of 5.9M, a public-listing history dating back to 2020, approximately 908 full-time employees. These structural characteristics shape how ROIV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.14 places ROIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on ROIV?

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 ROIV snapshot

As of June 29, 2026, spot at $34.56, ATM IV 45.50%, IV rank 36.78%, expected move 13.04%. The straddle on ROIV 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 18-day expiry.

Why this straddle structure on ROIV specifically: ROIV IV at 45.50% 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 13.04% (roughly $4.51 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ROIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROIV should anchor to the underlying notional of $34.56 per share and to the trader's directional view on ROIV stock.

ROIV straddle setup

The ROIV 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 ROIV near $34.56, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROIV chain at a 18-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 ROIV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$35.00	$1.03
Buy 1	Put	$35.00	$1.95

ROIV straddle risk and reward

Net Premium / Debit: -$297.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$288.91
Breakeven(s): $32.03, $37.98
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.

ROIV straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on ROIV. 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%	+$3,201.50
$7.65	-77.9%	+$2,437.47
$15.29	-55.8%	+$1,673.44
$22.93	-33.6%	+$909.41
$30.57	-11.5%	+$145.38
$38.21	+10.6%	+$23.65
$45.85	+32.7%	+$787.68
$53.49	+54.8%	+$1,551.71
$61.13	+76.9%	+$2,315.74
$68.77	+99.0%	+$3,079.77

When traders use straddle on ROIV

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

ROIV thesis for this straddle

The market-implied 1-standard-deviation range for ROIV extends from approximately $30.05 on the downside to $39.07 on the upside. A ROIV 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 ROIV IV rank near 36.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on ROIV should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ROIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROIV-specific events.

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

Frequently asked questions

What is a straddle on ROIV?: A straddle on ROIV is the straddle strategy applied to ROIV (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 ROIV stock trading near $34.56, the strikes shown on this page are snapped to the nearest listed ROIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ROIV 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 ROIV straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 45.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$288.91 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ROIV straddle?: The breakeven for the ROIV straddle priced on this page is roughly $32.03 and $37.98 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 ROIV market-implied 1-standard-deviation expected move is approximately 13.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on ROIV?: Straddles on ROIV are pure-volatility plays that profit from large moves in either direction; traders typically buy ROIV 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 ROIV implied volatility affect this straddle?: ROIV ATM IV is at 45.50% with IV rank near 36.78%, 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.