How are SKHU 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 SKHU straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 149.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$689.98 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SKHU straddle?

The breakeven for the SKHU straddle priced on this page is roughly $12.05 and $25.95 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 SKHU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SKHU implied volatility affect this straddle?

Current SKHU ATM IV is 149.40%; IV rank context is unavailable in the current snapshot.

SKHU Straddle Strategy

SKHU (Proshares Ultra Sk Hynix), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

ProShares Ultra SK hynix seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the American Depositary Receipt (ADR) of SK hynix Inc., a leading South Korean memory semiconductor manufacturer and a major supplier of high bandwidth memory (HBM) used in AI accelerators alongside Nvidia chips. The Fund achieves its exposure primarily through swap agreements and shares of SKHY, resetting daily. Given the extraordinarily high cost of obtaining leveraged foreign-ADR exposure, the Fund may underperform even when SK hynix's underlying share price rises, and returns over periods longer than a day can differ significantly from the 2x daily target due to compounding.

SKHU (Proshares Ultra Sk Hynix) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $74.0M, a beta of 0.00 versus the broader market, a 52-week range of 11.6-31.03, average daily share volume of 2.5M, a public-listing history dating back to 2026. These structural characteristics shape how SKHU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates SKHU 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 SKHU?

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.

SKHU snapshot

As of August 14, 2026, spot at $18.95, ATM IV 149.40%, expected move 42.83%. The straddle on SKHU 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 SKHU specifically: IV rank is unavailable in the current snapshot, so regime-based timing for SKHU is inferred from ATM IV at 149.40% alone, with a market-implied 1-standard-deviation move of approximately 42.83% (roughly $8.12 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 SKHU expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKHU should anchor to the underlying notional of $18.95 per share and to the trader's directional view on SKHU stock.

SKHU straddle setup

The SKHU 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 SKHU at $18.95 on that close, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SKHU 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 SKHU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$19.00	$3.50
Buy 1	Put	$19.00	$3.45

SKHU straddle risk and reward

Net Premium / Debit: -$695.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$689.98
Breakeven(s): $12.05, $25.95
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.

SKHU straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on SKHU. 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	-99.9%	+$1,204.00
$4.20	-77.8%	+$785.12
$8.39	-55.7%	+$366.23
$12.58	-33.6%	-$52.65
$16.77	-11.5%	-$471.54
$20.95	+10.6%	-$499.58
$25.14	+32.7%	-$80.69
$29.33	+54.8%	+$338.19
$33.52	+76.9%	+$757.08
$37.71	+99.0%	+$1,175.96

When traders use straddle on SKHU

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

SKHU thesis for this straddle

The market-implied 1-standard-deviation range for SKHU extends from approximately $10.83 on the downside to $27.07 on the upside. A SKHU 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. As a Financial Services name, SKHU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKHU-specific events.

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

Frequently asked questions

What is a straddle on SKHU?: A straddle on SKHU is the straddle strategy applied to SKHU (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 SKHU stock at $18.95 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SKHU chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SKHU 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 SKHU straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 149.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$689.98 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SKHU straddle?: The breakeven for the SKHU straddle priced on this page is roughly $12.05 and $25.95 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 SKHU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on SKHU?: Straddles on SKHU are pure-volatility plays that profit from large moves in either direction; traders typically buy SKHU 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 SKHU implied volatility affect this straddle?: Current SKHU ATM IV is 149.40%; IV rank context is unavailable in the current snapshot.