STTK Straddle Strategy
STTK (Shattuck Labs, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Shattuck Labs, Inc., a clinical-stage biotechnology company, develops therapeutics for the treatment of cancer and autoimmune disease in the United States. The company's lead product candidate is SL-172154, which is in Phase 1 clinical trial for the treatment of ovarian, fallopian tube, and peritoneal cancers. It also develops SL-279252 that is in Phase 1 clinical trial in patients with advanced solid tumors and lymphoma. The company was incorporated in 2016 and is headquartered in Austin, Texas.
STTK (Shattuck Labs, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $323.3M, a beta of 1.19 versus the broader market, a 52-week range of 0.712-8.33, average daily share volume of 573K, a public-listing history dating back to 2020, approximately 44 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 1.19 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.
Current STTK snapshot
As of May 15, 2026, spot at $6.28, ATM IV 164.60%, IV rank 31.20%, expected move 47.19%. The straddle on STTK 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 STTK specifically: STTK IV at 164.60% 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 47.19% (roughly $2.96 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 STTK expiries trade a higher absolute premium for lower per-day decay. Position sizing on STTK should anchor to the underlying notional of $6.28 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 near $6.28, the first option leg uses a $6.28 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 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 STTK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.28 | N/A |
| Buy 1 | Put | $6.28 | 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 $3.32 on the downside to $9.24 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 31.20% 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 trading near $6.28, the strikes shown on this page are snapped to the nearest listed STTK chain strike and the premiums come straight from the end-of-day 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 164.60%), 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 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 STTK market-implied 1-standard-deviation expected move is approximately 47.19%; 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 164.60% with IV rank near 31.20%, 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.