SR Straddle Strategy

SR (Spire Inc.), in the Utilities sector, (Regulated Gas industry), listed on NYSE.

Spire Inc., together with its subsidiaries, engages in the purchase, retail distribution, and sale of natural gas to residential, commercial, industrial, and other end-users of natural gas in the United States. The company operates in two segments, Gas Utility and Gas Marketing. It is also involved in the marketing of natural gas. In addition, the company engages in the transportation of propane through its propane pipeline; compression of natural gas; risk management; and other activities. Further, it provides physical natural gas storage services. The company was formerly known as The Laclede Group, Inc. and changed its name to Spire Inc. in April 2016.

SR (Spire Inc.) trades in the Utilities sector, specifically Regulated Gas, with a market capitalization of approximately $5.06B, a trailing P/E of 14.09, a beta of 0.58 versus the broader market, a 52-week range of 71.24-95.31, average daily share volume of 376K, a public-listing history dating back to 1973, approximately 3K full-time employees. These structural characteristics shape how SR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.58 indicates SR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on SR?

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 SR snapshot

As of May 15, 2026, spot at $85.24, ATM IV 19.10%, IV rank 3.29%, expected move 5.48%. The straddle on SR 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 SR specifically: SR IV at 19.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a SR straddle, with a market-implied 1-standard-deviation move of approximately 5.48% (roughly $4.67 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 SR expiries trade a higher absolute premium for lower per-day decay. Position sizing on SR should anchor to the underlying notional of $85.24 per share and to the trader's directional view on SR stock.

SR straddle setup

The SR 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 SR near $85.24, the first option leg uses a $85.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SR 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 SR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.24	N/A
Buy 1	Put	$85.24	N/A

SR 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.

SR straddle payoff curve

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

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

SR thesis for this straddle

The market-implied 1-standard-deviation range for SR extends from approximately $80.57 on the downside to $89.91 on the upside. A SR 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 SR IV rank near 3.29% 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 SR at 19.10%. As a Utilities name, SR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SR-specific events.

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

Frequently asked questions

What is a straddle on SR?: A straddle on SR is the straddle strategy applied to SR (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 SR stock trading near $85.24, the strikes shown on this page are snapped to the nearest listed SR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SR 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 SR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 19.10%), 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 SR straddle?: The breakeven for the SR 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 SR market-implied 1-standard-deviation expected move is approximately 5.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on SR?: Straddles on SR are pure-volatility plays that profit from large moves in either direction; traders typically buy SR 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 SR implied volatility affect this straddle?: SR ATM IV is at 19.10% with IV rank near 3.29%, 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.