RZLT Straddle Strategy
RZLT (Rezolute, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Rezolute, Inc., a clinical stage biopharmaceutical company, develops transformative therapies for metabolic diseases associated with chronic glucose imbalance in the United States. The company's lead product candidate is RZ358, a human monoclonal antibody that is in Phase 2b clinical trial for the treatment of congenital hyperinsulinism, an ultra-rare pediatric genetic disorder. It is also developing RZ402, a selective and potent plasma kallikrein inhibitor, which is in Phase 1 clinical trial for the chronic treatment of diabetic macular edema. The company was formerly known as AntriaBio, Inc. and changed its name to Rezolute, Inc. in December 2017. Rezolute, Inc. was founded in 2010 and is headquartered in Redwood City, California.
RZLT (Rezolute, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $318.7M, a beta of 0.67 versus the broader market, a 52-week range of 1.07-11.457, average daily share volume of 2.2M, a public-listing history dating back to 2013, approximately 64 full-time employees. These structural characteristics shape how RZLT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.67 indicates RZLT 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 RZLT?
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 RZLT snapshot
As of May 15, 2026, spot at $3.33, ATM IV 108.50%, IV rank 27.08%, expected move 31.11%. The straddle on RZLT 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 RZLT specifically: RZLT IV at 108.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a RZLT straddle, with a market-implied 1-standard-deviation move of approximately 31.11% (roughly $1.04 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 RZLT expiries trade a higher absolute premium for lower per-day decay. Position sizing on RZLT should anchor to the underlying notional of $3.33 per share and to the trader's directional view on RZLT stock.
RZLT straddle setup
The RZLT 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 RZLT near $3.33, the first option leg uses a $3.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RZLT 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 RZLT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.33 | N/A |
| Buy 1 | Put | $3.33 | N/A |
RZLT 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.
RZLT straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on RZLT. 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 RZLT
Straddles on RZLT are pure-volatility plays that profit from large moves in either direction; traders typically buy RZLT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
RZLT thesis for this straddle
The market-implied 1-standard-deviation range for RZLT extends from approximately $2.29 on the downside to $4.37 on the upside. A RZLT 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 RZLT IV rank near 27.08% 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 RZLT at 108.50%. As a Healthcare name, RZLT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RZLT-specific events.
RZLT 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. RZLT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RZLT alongside the broader basket even when RZLT-specific fundamentals are unchanged. Always rebuild the position from current RZLT chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on RZLT?
- A straddle on RZLT is the straddle strategy applied to RZLT (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 RZLT stock trading near $3.33, the strikes shown on this page are snapped to the nearest listed RZLT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RZLT 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 RZLT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 108.50%), 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 RZLT straddle?
- The breakeven for the RZLT 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 RZLT market-implied 1-standard-deviation expected move is approximately 31.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on RZLT?
- Straddles on RZLT are pure-volatility plays that profit from large moves in either direction; traders typically buy RZLT 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 RZLT implied volatility affect this straddle?
- RZLT ATM IV is at 108.50% with IV rank near 27.08%, 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.