RXST Straddle Strategy
RXST (RxSight, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
RxSight, Inc., a medical technology company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.
RXST (RxSight, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $229.8M, a beta of 1.24 versus the broader market, a 52-week range of 5.3-16.74, average daily share volume of 766K, a public-listing history dating back to 2021, approximately 498 full-time employees. These structural characteristics shape how RXST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places RXST roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on RXST?
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 RXST snapshot
As of May 15, 2026, spot at $5.62, ATM IV 231.90%, IV rank 50.61%, expected move 66.48%. The straddle on RXST 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 RXST specifically: RXST IV at 231.90% 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 66.48% (roughly $3.74 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 RXST expiries trade a higher absolute premium for lower per-day decay. Position sizing on RXST should anchor to the underlying notional of $5.62 per share and to the trader's directional view on RXST stock.
RXST straddle setup
The RXST 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 RXST near $5.62, the first option leg uses a $5.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RXST 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 RXST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.62 | N/A |
| Buy 1 | Put | $5.62 | N/A |
RXST 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.
RXST straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on RXST. 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 RXST
Straddles on RXST are pure-volatility plays that profit from large moves in either direction; traders typically buy RXST straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
RXST thesis for this straddle
The market-implied 1-standard-deviation range for RXST extends from approximately $1.88 on the downside to $9.36 on the upside. A RXST 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 RXST IV rank near 50.61% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on RXST should anchor more to the directional view and the expected-move geometry. As a Healthcare name, RXST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RXST-specific events.
RXST 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. RXST positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RXST alongside the broader basket even when RXST-specific fundamentals are unchanged. Always rebuild the position from current RXST chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on RXST?
- A straddle on RXST is the straddle strategy applied to RXST (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 RXST stock trading near $5.62, the strikes shown on this page are snapped to the nearest listed RXST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RXST 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 RXST straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 231.90%), 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 RXST straddle?
- The breakeven for the RXST 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 RXST market-implied 1-standard-deviation expected move is approximately 66.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on RXST?
- Straddles on RXST are pure-volatility plays that profit from large moves in either direction; traders typically buy RXST 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 RXST implied volatility affect this straddle?
- RXST ATM IV is at 231.90% with IV rank near 50.61%, 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.