STHO Straddle Strategy
STHO (Star Holdings), in the Real Estate sector, (Real Estate - Services industry), listed on NASDAQ.
Star Holdings engages in the non-ground lease related commercial real estate businesses in the United States. Its portfolio primarily comprises interest in the Asbury Park Waterfront and Magnolia Green residential development projects; and commercial real estate properties and loans that are marketed for sale or monetized. The company is based in New York, New York.
STHO (Star Holdings) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $104.4M, a beta of 1.27 versus the broader market, a 52-week range of 6.055-9.25, average daily share volume of 27K, a public-listing history dating back to 2023, approximately 74 full-time employees. These structural characteristics shape how STHO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.27 places STHO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on STHO?
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 STHO snapshot
As of May 15, 2026, spot at $8.54, ATM IV 50.20%, IV rank 6.38%, expected move 14.39%. The straddle on STHO 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 STHO specifically: STHO IV at 50.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a STHO straddle, with a market-implied 1-standard-deviation move of approximately 14.39% (roughly $1.23 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 STHO expiries trade a higher absolute premium for lower per-day decay. Position sizing on STHO should anchor to the underlying notional of $8.54 per share and to the trader's directional view on STHO stock.
STHO straddle setup
The STHO 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 STHO near $8.54, the first option leg uses a $8.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STHO 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 STHO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.54 | N/A |
| Buy 1 | Put | $8.54 | N/A |
STHO 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.
STHO straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on STHO. 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 STHO
Straddles on STHO are pure-volatility plays that profit from large moves in either direction; traders typically buy STHO straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
STHO thesis for this straddle
The market-implied 1-standard-deviation range for STHO extends from approximately $7.31 on the downside to $9.77 on the upside. A STHO 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 STHO IV rank near 6.38% 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 STHO at 50.20%. As a Real Estate name, STHO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STHO-specific events.
STHO 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. STHO positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STHO alongside the broader basket even when STHO-specific fundamentals are unchanged. Always rebuild the position from current STHO chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on STHO?
- A straddle on STHO is the straddle strategy applied to STHO (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 STHO stock trading near $8.54, the strikes shown on this page are snapped to the nearest listed STHO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STHO 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 STHO straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 50.20%), 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 STHO straddle?
- The breakeven for the STHO 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 STHO market-implied 1-standard-deviation expected move is approximately 14.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on STHO?
- Straddles on STHO are pure-volatility plays that profit from large moves in either direction; traders typically buy STHO 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 STHO implied volatility affect this straddle?
- STHO ATM IV is at 50.20% with IV rank near 6.38%, 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.