STTK Straddle Strategy

STTK (Shattuck Labs, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Shattuck Labs, Inc. operates as a biotechnology firm based in the United States, currently at the clinical development stage. Its core mission is to create innovative therapeutics designed to combat both cancer and autoimmune diseases. The company's leading experimental compound, SL-172154, is presently undergoing Phase 1 clinical assessment for the treatment of ovarian, fallopian tube, and peritoneal cancers. Furthermore, Shattuck Labs is advancing another product candidate, SL-279252, which is also in Phase 1 trials for patients afflicted with advanced solid tumors and lymphoma. Established in 2016, the company maintains its corporate headquarters in Austin, Texas.

STTK (Shattuck Labs, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $676.9M, a beta of 1.11 versus the broader market, a 52-week range of 0.788-8.33, average daily share volume of 1.0M, a public-listing history dating back to 2020, approximately 40 full-time employees. These structural characteristics shape how STTK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.11 places STTK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on STTK?

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.

STTK snapshot

As of August 14, 2026, spot at $7.48, ATM IV 198.90%, IV rank 39.03%, expected move 57.02%. The straddle on STTK 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 STTK specifically: STTK IV at 198.90% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 57.02% (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 STTK expiries trade a higher absolute premium for lower per-day decay. Position sizing on STTK should anchor to the underlying notional of $7.48 per share and to the trader's directional view on STTK stock.

STTK straddle setup

The STTK 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 STTK at $7.48 on that close, the first option leg uses a $7.48 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STTK 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 STTK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$7.48	N/A
Buy 1	Put	$7.48	N/A

STTK 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.

STTK straddle payoff curve

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

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

STTK thesis for this straddle

The market-implied 1-standard-deviation range for STTK extends from approximately $3.21 on the downside to $11.75 on the upside. A STTK 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 STTK IV rank near 39.03% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on STTK should anchor more to the directional view and the expected-move geometry. As a Healthcare name, STTK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STTK-specific events.

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

Frequently asked questions

What is a straddle on STTK?: A straddle on STTK is the straddle strategy applied to STTK (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 STTK stock at $7.48 on the most recent close, the strikes shown on this page are snapped to the nearest listed STTK chain strike and the premiums come straight from that session's bid/ask midpoint.
How are STTK 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 STTK straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 198.90%), 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 STTK straddle?: The breakeven for the STTK 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 STTK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 57.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on STTK?: Straddles on STTK are pure-volatility plays that profit from large moves in either direction; traders typically buy STTK 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 STTK implied volatility affect this straddle?: STTK ATM IV is at 198.90% with IV rank near 39.03%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.