SMRT Straddle Strategy
SMRT (SmartRent, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. Its solution is designed to provide communities with visibility and control their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents. The company's products and solutions include smart apartments and homes, access control for buildings, common areas, rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. SmartRent, Inc. was founded in 2017 and is headquartered in Scottsdale, Arizona.
SMRT (SmartRent, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $214.1M, a beta of 1.57 versus the broader market, a 52-week range of 0.745-2.2, average daily share volume of 926K, a public-listing history dating back to 2021, approximately 494 full-time employees. These structural characteristics shape how SMRT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates SMRT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a straddle on SMRT?
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 SMRT snapshot
As of May 15, 2026, spot at $1.13, ATM IV 135.20%, IV rank 35.66%, expected move 38.76%. The straddle on SMRT 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 SMRT specifically: SMRT IV at 135.20% 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 38.76% (roughly $0.44 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 SMRT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMRT should anchor to the underlying notional of $1.13 per share and to the trader's directional view on SMRT stock.
SMRT straddle setup
The SMRT 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 SMRT near $1.13, the first option leg uses a $1.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMRT 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 SMRT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.13 | N/A |
| Buy 1 | Put | $1.13 | N/A |
SMRT 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.
SMRT straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on SMRT. 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 SMRT
Straddles on SMRT are pure-volatility plays that profit from large moves in either direction; traders typically buy SMRT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
SMRT thesis for this straddle
The market-implied 1-standard-deviation range for SMRT extends from approximately $0.69 on the downside to $1.57 on the upside. A SMRT 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 SMRT IV rank near 35.66% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on SMRT should anchor more to the directional view and the expected-move geometry. As a Technology name, SMRT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMRT-specific events.
SMRT 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. SMRT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SMRT alongside the broader basket even when SMRT-specific fundamentals are unchanged. Always rebuild the position from current SMRT chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on SMRT?
- A straddle on SMRT is the straddle strategy applied to SMRT (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 SMRT stock trading near $1.13, the strikes shown on this page are snapped to the nearest listed SMRT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SMRT 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 SMRT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 135.20%), 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 SMRT straddle?
- The breakeven for the SMRT 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 SMRT market-implied 1-standard-deviation expected move is approximately 38.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on SMRT?
- Straddles on SMRT are pure-volatility plays that profit from large moves in either direction; traders typically buy SMRT 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 SMRT implied volatility affect this straddle?
- SMRT ATM IV is at 135.20% with IV rank near 35.66%, 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.