SEIC Straddle Strategy
SEIC (SEI Investments Company), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
SEI Investments Company is a publicly owned asset management holding company. Through its subsidiaries, the firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients. It provides its services to private banks, independent financial advisers, institutional investors, investment managers, investment advisors, wealth management organizations, corporations, retirement scheme sponsors, not-for-profit organizations, hedge fund managers, registered investment advisers, independent broker-dealers, financial planners, life insurance agents, defined-benefit schemes, defined-contribution schemes, endowments, foundations, and board-designated fund, through its subsidiaries. Through its subsidiaries, the firm manages separate client-focused portfolios. It also launches and manages equity, fixed income, and balanced mutual funds, through its subsidiaries. Through its subsidiaries, the firm invests in public equity and fixed income markets.
SEIC (SEI Investments Company) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.09B, a trailing P/E of 15.20, a beta of 1.00 versus the broader market, a 52-week range of 75.08-93.96, average daily share volume of 938K, a public-listing history dating back to 1981, approximately 5K full-time employees. These structural characteristics shape how SEIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places SEIC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SEIC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on SEIC?
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 SEIC snapshot
As of May 15, 2026, spot at $90.80, ATM IV 25.90%, IV rank 2.74%, expected move 7.43%. The straddle on SEIC 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 SEIC specifically: SEIC IV at 25.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a SEIC straddle, with a market-implied 1-standard-deviation move of approximately 7.43% (roughly $6.74 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 SEIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SEIC should anchor to the underlying notional of $90.80 per share and to the trader's directional view on SEIC stock.
SEIC straddle setup
The SEIC 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 SEIC near $90.80, the first option leg uses a $90.80 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SEIC 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 SEIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $90.80 | N/A |
| Buy 1 | Put | $90.80 | N/A |
SEIC 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.
SEIC straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on SEIC. 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 SEIC
Straddles on SEIC are pure-volatility plays that profit from large moves in either direction; traders typically buy SEIC straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
SEIC thesis for this straddle
The market-implied 1-standard-deviation range for SEIC extends from approximately $84.06 on the downside to $97.54 on the upside. A SEIC 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 SEIC IV rank near 2.74% 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 SEIC at 25.90%. As a Financial Services name, SEIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SEIC-specific events.
SEIC 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. SEIC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SEIC alongside the broader basket even when SEIC-specific fundamentals are unchanged. Always rebuild the position from current SEIC chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on SEIC?
- A straddle on SEIC is the straddle strategy applied to SEIC (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 SEIC stock trading near $90.80, the strikes shown on this page are snapped to the nearest listed SEIC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SEIC 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 SEIC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 25.90%), 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 SEIC straddle?
- The breakeven for the SEIC 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 SEIC market-implied 1-standard-deviation expected move is approximately 7.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on SEIC?
- Straddles on SEIC are pure-volatility plays that profit from large moves in either direction; traders typically buy SEIC 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 SEIC implied volatility affect this straddle?
- SEIC ATM IV is at 25.90% with IV rank near 2.74%, 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.