How are SKYW 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 SKYW straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 38.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$740.55 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SKYW straddle?

The breakeven for the SKYW straddle priced on this page is roughly $74.80 and $90.20 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 SKYW market-implied 1-standard-deviation expected move is approximately 10.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SKYW implied volatility affect this straddle?

SKYW ATM IV is at 38.10% with IV rank near 52.28%, 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.

SKYW Straddle Strategy

SKYW (SkyWest, Inc.), in the Industrials sector, (Airlines, Airports & Air Services industry), listed on NASDAQ.

SkyWest, Inc., through its subsidiaries, operates a regional airline in the United States. The company operates through two segment, SkyWest Airlines and SkyWest Leasing. It also leases regional jet aircraft and spare engines to third parties. As of December 31, 2021, the company's fleet consisted of 629 aircraft; and provided scheduled passenger and air freight services with approximately 2,080 total daily departures to various destinations in the United States, Canada, Mexico, and the Caribbean. In addition, it offers airport customer and ground handling services for other airlines. SkyWest, Inc. was incorporated in 1972 and is headquartered in St.

SKYW (SkyWest, Inc.) trades in the Industrials sector, specifically Airlines, Airports & Air Services, with a market capitalization of approximately $3.37B, a trailing P/E of 7.91, a beta of 1.48 versus the broader market, a 52-week range of 80-123.94, average daily share volume of 380K, a public-listing history dating back to 1986, approximately 13K full-time employees. These structural characteristics shape how SKYW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.48 indicates SKYW has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.91 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a straddle on SKYW?

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 SKYW snapshot

As of May 15, 2026, spot at $81.56, ATM IV 38.10%, IV rank 52.28%, expected move 10.92%. The straddle on SKYW 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 SKYW specifically: SKYW IV at 38.10% 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 10.92% (roughly $8.91 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 SKYW expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKYW should anchor to the underlying notional of $81.56 per share and to the trader's directional view on SKYW stock.

SKYW straddle setup

The SKYW 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 SKYW near $81.56, the first option leg uses a $82.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SKYW 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 SKYW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$82.50	$3.60
Buy 1	Put	$82.50	$4.10

SKYW straddle risk and reward

Net Premium / Debit: -$770.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$740.55
Breakeven(s): $74.80, $90.20
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.

SKYW straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on SKYW. 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%	+$7,479.00
$18.04	-77.9%	+$5,675.77
$36.07	-55.8%	+$3,872.55
$54.11	-33.7%	+$2,069.32
$72.14	-11.6%	+$266.10
$90.17	+10.6%	-$2.87
$108.20	+32.7%	+$1,800.36
$126.24	+54.8%	+$3,603.58
$144.27	+76.9%	+$5,406.81
$162.30	+99.0%	+$7,210.04

When traders use straddle on SKYW

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

SKYW thesis for this straddle

The market-implied 1-standard-deviation range for SKYW extends from approximately $72.65 on the downside to $90.47 on the upside. A SKYW 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 SKYW IV rank near 52.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on SKYW should anchor more to the directional view and the expected-move geometry. As a Industrials name, SKYW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKYW-specific events.

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

Frequently asked questions

What is a straddle on SKYW?: A straddle on SKYW is the straddle strategy applied to SKYW (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 SKYW stock trading near $81.56, the strikes shown on this page are snapped to the nearest listed SKYW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SKYW 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 SKYW straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 38.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$740.55 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SKYW straddle?: The breakeven for the SKYW straddle priced on this page is roughly $74.80 and $90.20 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 SKYW market-implied 1-standard-deviation expected move is approximately 10.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on SKYW?: Straddles on SKYW are pure-volatility plays that profit from large moves in either direction; traders typically buy SKYW 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 SKYW implied volatility affect this straddle?: SKYW ATM IV is at 38.10% with IV rank near 52.28%, 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.