How are SAFT 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 SAFT straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 1.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$238.39 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SAFT straddle?

The breakeven for the SAFT straddle priced on this page is roughly $102.59 and $107.41 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SAFT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 0.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SAFT implied volatility affect this straddle?

SAFT ATM IV is at 1.90% with IV rank near 0.18%, 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.

SAFT Straddle Strategy

SAFT (Safety Insurance Group, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NASDAQ.

Safety Insurance Group, Inc. (SAFT) is a U.S.-based insurance provider offering a diverse range of personal and commercial coverage. The company's private passenger automobile policies furnish protection against third-party bodily injury and property damage liability, no-fault personal injury benefits for policyholders and their passengers, and physical damage insurance for the insured's own vehicle, covering impacts and other specific risks. Furthermore, it underwrites commercial automobile policies, designed for business-use vehicles ranging from passenger cars to trucks, tractors, and trailers, covering both individual units and entire fleets. For property owners, Safety Insurance offers homeowner policies that safeguard houses, condominiums, and apartments against damage to the structure and its contents from various perils, alongside liability coverage stemming from property ownership or occupation. The firm also extends its offerings to business owners policies, catering to diverse commercial operations such as apartment complexes, residential condominium associations, dining establishments, office condominiums, processing and service businesses, specialized trade contractors, and wholesalers. Beyond standard coverage, the company provides personal umbrella policies, which offer additional liability protection extending beyond the limits of individual automobile, watercraft, and homeowner insurance.

SAFT (Safety Insurance Group, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $1.52B, a trailing P/E of 21.91, a beta of 0.18 versus the broader market, a 52-week range of 67.04-103.75, average daily share volume of 167K, a public-listing history dating back to 2002, approximately 568 full-time employees. These structural characteristics shape how SAFT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.18 indicates SAFT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SAFT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on SAFT?

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.

SAFT snapshot

As of August 14, 2026, spot at $103.41, ATM IV 1.90%, IV rank 0.18%, expected move 0.54%. The straddle on SAFT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this straddle structure on SAFT specifically: SAFT IV at 1.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a SAFT straddle, with a market-implied 1-standard-deviation move of approximately 0.54% (roughly $0.56 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SAFT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SAFT should anchor to the underlying notional of $103.41 per share and to the trader's directional view on SAFT stock.

SAFT straddle setup

The SAFT straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SAFT at $103.41 on that close, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SAFT chain at a 35-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 SAFT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$0.15
Buy 1	Put	$105.00	$2.26

SAFT straddle risk and reward

Net Premium / Debit: -$241.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$238.39
Breakeven(s): $102.59, $107.41
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.

SAFT straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on SAFT. 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%	+$10,258.00
$22.87	-77.9%	+$7,971.66
$45.74	-55.8%	+$5,685.32
$68.60	-33.7%	+$3,398.97
$91.46	-11.6%	+$1,112.63
$114.33	+10.6%	+$691.71
$137.19	+32.7%	+$2,978.05
$160.05	+54.8%	+$5,264.39
$182.92	+76.9%	+$7,550.73
$205.78	+99.0%	+$9,837.08

When traders use straddle on SAFT

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

SAFT thesis for this straddle

The market-implied 1-standard-deviation range for SAFT extends from approximately $102.85 on the downside to $103.97 on the upside. A SAFT 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 SAFT IV rank near 0.18% 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 SAFT at 1.90%. As a Financial Services name, SAFT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SAFT-specific events.

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

Frequently asked questions

What is a straddle on SAFT?: A straddle on SAFT is the straddle strategy applied to SAFT (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 SAFT stock at $103.41 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SAFT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SAFT 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 SAFT straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 1.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$238.39 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SAFT straddle?: The breakeven for the SAFT straddle priced on this page is roughly $102.59 and $107.41 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SAFT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 0.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on SAFT?: Straddles on SAFT are pure-volatility plays that profit from large moves in either direction; traders typically buy SAFT 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 SAFT implied volatility affect this straddle?: SAFT ATM IV is at 1.90% with IV rank near 0.18%, 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.