SOPH Straddle Strategy

SOPH (SOPHiA GENETICS S.A.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.

SOPHiA GENETICS S.A. operates as a specialized company within the healthcare technology sector. The firm provides the SOPHiA DDM platform, a cloud-native Software-as-a-Service (SaaS) solution engineered to analyze diverse multimodal datasets and various diagnostic inputs, thereby extracting valuable insights. This platform, together with its related offerings and services, is widely adopted by hospitals, laboratories, and biopharmaceutical organizations across the globe. Founded in 2011, SOPHiA GENETICS S.A. is headquartered in Saint-Sulpice, Switzerland.

SOPH (SOPHiA GENETICS S.A.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $635.1M, a beta of 0.92 versus the broader market, a 52-week range of 2.99-7.88, average daily share volume of 235K, a public-listing history dating back to 2021, approximately 415 full-time employees. These structural characteristics shape how SOPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.92 places SOPH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on SOPH?

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.

SOPH snapshot

As of August 14, 2026, spot at $7.45, ATM IV 52.80%, IV rank 13.27%, expected move 15.14%. The straddle on SOPH below is built from the 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 SOPH specifically: SOPH IV at 52.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a SOPH straddle, with a market-implied 1-standard-deviation move of approximately 15.14% (roughly $1.13 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 SOPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOPH should anchor to the underlying notional of $7.45 per share and to the trader's directional view on SOPH stock.

SOPH straddle setup

The SOPH 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 SOPH at $7.45 on that close, the first option leg uses a $7.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOPH 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 SOPH shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$7.45N/A
Buy 1Put$7.45N/A

SOPH 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.

SOPH straddle payoff curve

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

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

SOPH thesis for this straddle

The market-implied 1-standard-deviation range for SOPH extends from approximately $6.32 on the downside to $8.58 on the upside. A SOPH 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 SOPH IV rank near 13.27% 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 SOPH at 52.80%. As a Healthcare name, SOPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOPH-specific events.

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

Frequently asked questions

What is a straddle on SOPH?
A straddle on SOPH is the straddle strategy applied to SOPH (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 SOPH stock at $7.45 on the most recent close, the strikes shown on this page are snapped to the nearest listed SOPH chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SOPH 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 SOPH straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 52.80%), 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 SOPH straddle?
The breakeven for the SOPH straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 SOPH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on SOPH?
Straddles on SOPH are pure-volatility plays that profit from large moves in either direction; traders typically buy SOPH 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 SOPH implied volatility affect this straddle?
SOPH ATM IV is at 52.80% with IV rank near 13.27%, 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.

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