SSTI Straddle Strategy

SSTI (SoundThinking, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

SoundThinking, Inc., a public safety technology company, provides data-driven solutions and strategic advisory services for law enforcement, security teams, and civic leadership. Its SafetySmart platform that includes data-driven tools comprising ShotSpotter, an outdoor gunshot detection, location, and alerting system; CrimeTracer, an agency-wide crime data and intelligence platform that enables investigators, analysts, patrol officers and command staff to search through criminal justice records from across jurisdictions, leverage dashboards, and AI-assisted tools to generate tactical leads and make intelligent connections to solve cases; CaseBuilder, a one-stop investigative case management system for tracking, reporting and collaborating on cases; ResourceRouter, a software that directs the deployment of patrol and community anti-violence resources; PlateRanger powered by Rekor, an automatic license plate recognition and vehicle identification solution; and SafePointe, an artificial intelligence-based weapons detection system. The company also offers ShotSpotter for Campus and ShotSpotter for Corporate, to universities, corporate campuses, and key infrastructure centers to mitigate risk and enhance security by notifying authorities of outdoor gunfire incidents and saving critical minutes for first responders to arrive. In addition, it provides perimeter-based sniper gunshot detection solutions. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023.

SSTI (SoundThinking, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $105.6M, a beta of 1.16 versus the broader market, a 52-week range of 5.78-13.34, average daily share volume of 111K, a public-listing history dating back to 2017, approximately 304 full-time employees. These structural characteristics shape how SSTI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.16 places SSTI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on SSTI?

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.

SSTI snapshot

As of August 14, 2026, spot at $6.13, ATM IV 242.90%, IV rank 100.00%, expected move 69.64%. The straddle on SSTI 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 SSTI specifically: SSTI IV at 242.90% is rich versus its 1-year range, which makes a premium-buying SSTI straddle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 69.64% (roughly $4.27 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 SSTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SSTI should anchor to the underlying notional of $6.13 per share and to the trader's directional view on SSTI stock.

SSTI straddle setup

The SSTI 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 SSTI at $6.13 on that close, the first option leg uses a $6.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SSTI 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 SSTI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$6.13	N/A
Buy 1	Put	$6.13	N/A

SSTI 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.

SSTI straddle payoff curve

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

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

SSTI thesis for this straddle

The market-implied 1-standard-deviation range for SSTI extends from approximately $1.86 on the downside to $10.40 on the upside. A SSTI 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 SSTI IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SSTI at 242.90%. As a Technology name, SSTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SSTI-specific events.

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

Frequently asked questions

What is a straddle on SSTI?: A straddle on SSTI is the straddle strategy applied to SSTI (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 SSTI stock at $6.13 on the most recent close, the strikes shown on this page are snapped to the nearest listed SSTI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SSTI 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 SSTI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 242.90%), 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 SSTI straddle?: The breakeven for the SSTI 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 SSTI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 69.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on SSTI?: Straddles on SSTI are pure-volatility plays that profit from large moves in either direction; traders typically buy SSTI 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 SSTI implied volatility affect this straddle?: SSTI ATM IV is at 242.90% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.