How are SIG 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 SIG straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 62.87%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,071.44 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SIG straddle?

The breakeven for the SIG straddle priced on this page is roughly $65.15 and $86.85 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 SIG market-implied 1-standard-deviation expected move is approximately 18.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SIG implied volatility affect this straddle?

SIG ATM IV is at 62.87% with IV rank near 65.31%, 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.

SIG Straddle Strategy

SIG (Signet Jewelers Limited), in the Consumer Cyclical sector, (Luxury Goods industry), listed on NYSE.

Signet Jewelers Limited operates as a diamond jewelry retailer. It operates through three segments: North America, International, and Other. The North America segment operates jewelry stores in jewelry stores in malls, mall-based kiosks, and off-mall locations in the United States and Canada primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Jewelers, Zales Outlet, Diamonds Direct, James Allen, Banter by Piercing Pagoda, and Peoples Jewellers names, as well as operates online through JamesAllen.com and Rocksbox. The International segment operates stores in shopping malls and off-mall locations primarily under the H.Samuel and Ernest Jones brands in the United Kingdom, Republic of Ireland, and Channel Islands. The Other segment is involved in the purchase and conversion of rough diamonds to polished stones, as well as the provision of diamond polishing services. As of January 29, 2022, it operated 2,854 stores and kiosks.

SIG (Signet Jewelers Limited) trades in the Consumer Cyclical sector, specifically Luxury Goods, with a market capitalization of approximately $3.17B, a trailing P/E of 10.76, a beta of 1.20 versus the broader market, a 52-week range of 61.92-110.2, average daily share volume of 934K, a public-listing history dating back to 1988, approximately 28K full-time employees. These structural characteristics shape how SIG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.20 places SIG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.76 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SIG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on SIG?

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 SIG snapshot

As of May 15, 2026, spot at $75.75, ATM IV 62.87%, IV rank 65.31%, expected move 18.03%. The straddle on SIG 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 28-day expiry.

Why this straddle structure on SIG specifically: SIG IV at 62.87% 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 18.03% (roughly $13.65 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on SIG should anchor to the underlying notional of $75.75 per share and to the trader's directional view on SIG stock.

SIG straddle setup

The SIG 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 SIG near $75.75, the first option leg uses a $76.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SIG chain at a 28-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 SIG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$76.00	$5.30
Buy 1	Put	$76.00	$5.55

SIG straddle risk and reward

Net Premium / Debit: -$1,085.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,071.44
Breakeven(s): $65.15, $86.85
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.

SIG straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on SIG. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$6,514.00
$16.76	-77.9%	+$4,839.24
$33.51	-55.8%	+$3,164.47
$50.25	-33.7%	+$1,489.71
$67.00	-11.6%	-$185.06
$83.75	+10.6%	-$310.18
$100.50	+32.7%	+$1,364.58
$117.24	+54.8%	+$3,039.35
$133.99	+76.9%	+$4,714.11
$150.74	+99.0%	+$6,388.87

When traders use straddle on SIG

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

SIG thesis for this straddle

The market-implied 1-standard-deviation range for SIG extends from approximately $62.10 on the downside to $89.40 on the upside. A SIG 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 SIG IV rank near 65.31% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on SIG should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, SIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SIG-specific events.

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

Frequently asked questions

What is a straddle on SIG?: A straddle on SIG is the straddle strategy applied to SIG (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 SIG stock trading near $75.75, the strikes shown on this page are snapped to the nearest listed SIG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SIG 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 SIG straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 62.87%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,071.44 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SIG straddle?: The breakeven for the SIG straddle priced on this page is roughly $65.15 and $86.85 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 SIG market-implied 1-standard-deviation expected move is approximately 18.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on SIG?: Straddles on SIG are pure-volatility plays that profit from large moves in either direction; traders typically buy SIG 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 SIG implied volatility affect this straddle?: SIG ATM IV is at 62.87% with IV rank near 65.31%, 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.