STIM Straddle Strategy
STIM (Neuronetics, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Neuronetics, Inc. functions as a medical technology enterprise with commercialized products, specializing in the creation, enhancement, and global distribution of solutions for individuals experiencing neurohealth conditions, both within the U.S. and abroad. The company's flagship product is the NeuroStar Advanced Therapy System, an in-office, non-surgical, and non-pharmaceutical treatment option available for adult patients diagnosed with major depressive disorder. This sophisticated system utilizes transcranial magnetic stimulation (TMS) to generate a pulsed magnetic field, similar in strength to an MRI, which subsequently induces electrical currents. These currents are specifically engineered to activate brain areas that are key to mood regulation. Neuronetics distributes its offerings directly to psychiatrists through its dedicated sales and client support personnel. Established in 2001, the company's corporate headquarters are situated in Malvern, Pennsylvania.
STIM (Neuronetics, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $223.4M, a beta of 1.12 versus the broader market, a 52-week range of 0.8-3.88, average daily share volume of 2.1M, a public-listing history dating back to 2018, approximately 658 full-time employees. These structural characteristics shape how STIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places STIM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on STIM?
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.
STIM snapshot
As of August 14, 2026, spot at $3.21, ATM IV 24.30%, IV rank 1.23%, expected move 6.97%. The straddle on STIM 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 STIM specifically: STIM IV at 24.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a STIM straddle, with a market-implied 1-standard-deviation move of approximately 6.97% (roughly $0.22 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 STIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on STIM should anchor to the underlying notional of $3.21 per share and to the trader's directional view on STIM stock.
STIM straddle setup
The STIM 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 STIM at $3.21 on that close, the first option leg uses a $3.21 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STIM 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 STIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.21 | N/A |
| Buy 1 | Put | $3.21 | N/A |
STIM 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.
STIM straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on STIM. 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 STIM
Straddles on STIM are pure-volatility plays that profit from large moves in either direction; traders typically buy STIM straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
STIM thesis for this straddle
The market-implied 1-standard-deviation range for STIM extends from approximately $2.99 on the downside to $3.43 on the upside. A STIM 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 STIM IV rank near 1.23% 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 STIM at 24.30%. As a Healthcare name, STIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STIM-specific events.
STIM 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. STIM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STIM alongside the broader basket even when STIM-specific fundamentals are unchanged. Always rebuild the position from current STIM chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on STIM?
- A straddle on STIM is the straddle strategy applied to STIM (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 STIM stock at $3.21 on the most recent close, the strikes shown on this page are snapped to the nearest listed STIM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are STIM 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 STIM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 24.30%), 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 STIM straddle?
- The breakeven for the STIM 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 STIM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on STIM?
- Straddles on STIM are pure-volatility plays that profit from large moves in either direction; traders typically buy STIM 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 STIM implied volatility affect this straddle?
- STIM ATM IV is at 24.30% with IV rank near 1.23%, 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.