How are SUPN 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 SUPN straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 32.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$261.77 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SUPN straddle?

The breakeven for the SUPN straddle priced on this page is roughly $43.30 and $48.70 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 SUPN market-implied 1-standard-deviation expected move is approximately 9.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SUPN implied volatility affect this straddle?

SUPN ATM IV is at 32.50% with IV rank near 3.57%, 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.

SUPN Straddle Strategy

SUPN (Supernus Pharmaceuticals, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

Supernus Pharmaceuticals, Inc. is a biopharmaceutical firm dedicated to developing and marketing therapies for central nervous system (CNS) disorders within the United States. Its portfolio of marketed products includes Trokendi XR, an extended-release topiramate formulation prescribed for both epilepsy management and migraine prevention. Another key product is Oxtellar XR, an extended-release oxcarbazepine designed for the standalone treatment of partial-onset epileptic seizures in patients aged 6 to 17 and adults. The company also offers Qelbree, a selective norepinephrine reuptake inhibitor approved for attention-deficit hyperactivity disorder (ADHD) in children and adolescents aged 6 to 17. For advanced Parkinson's Disease (PD) patients, APOKYN offers acute, intermittent relief during "off" episodes of hypomobility, and XADAGO serves as an adjunctive treatment with levodopa/carbidopa for those experiencing similar off periods. Other offerings include GOCOVRI, which targets dyskinesia in PD patients, and Osmolex ER, used for Parkinson's disease and drug-induced extrapyramidal reactions in adults.

SUPN (Supernus Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $2.72B, a beta of 0.54 versus the broader market, a 52-week range of 31.16-59.68, average daily share volume of 684K, a public-listing history dating back to 2012, approximately 674 full-time employees. These structural characteristics shape how SUPN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.54 indicates SUPN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a straddle on SUPN?

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 SUPN snapshot

As of June 30, 2026, spot at $46.31, ATM IV 32.50%, IV rank 3.57%, expected move 9.32%. The straddle on SUPN 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 17-day expiry.

Why this straddle structure on SUPN specifically: SUPN IV at 32.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a SUPN straddle, with a market-implied 1-standard-deviation move of approximately 9.32% (roughly $4.31 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SUPN expiries trade a higher absolute premium for lower per-day decay. Position sizing on SUPN should anchor to the underlying notional of $46.31 per share and to the trader's directional view on SUPN stock.

SUPN straddle setup

The SUPN 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 SUPN near $46.31, the first option leg uses a $46.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SUPN chain at a 17-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 SUPN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$46.00	$1.85
Buy 1	Put	$46.00	$0.85

SUPN straddle risk and reward

Net Premium / Debit: -$270.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$261.77
Breakeven(s): $43.30, $48.70
Risk / Reward Ratio: Unbounded

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.

SUPN straddle payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$4,329.00
$10.25	-77.9%	+$3,305.17
$20.49	-55.8%	+$2,281.34
$30.72	-33.7%	+$1,257.51
$40.96	-11.5%	+$233.68
$51.20	+10.6%	+$250.15
$61.44	+32.7%	+$1,273.97
$71.68	+54.8%	+$2,297.80
$81.92	+76.9%	+$3,321.63
$92.15	+99.0%	+$4,345.46

When traders use straddle on SUPN

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

SUPN thesis for this straddle

The market-implied 1-standard-deviation range for SUPN extends from approximately $42.00 on the downside to $50.62 on the upside. A SUPN 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 SUPN IV rank near 3.57% 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 SUPN at 32.50%. As a Healthcare name, SUPN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SUPN-specific events.

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

Frequently asked questions

What is a straddle on SUPN?: A straddle on SUPN is the straddle strategy applied to SUPN (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 SUPN stock trading near $46.31, the strikes shown on this page are snapped to the nearest listed SUPN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SUPN 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 SUPN straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 32.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$261.77 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SUPN straddle?: The breakeven for the SUPN straddle priced on this page is roughly $43.30 and $48.70 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 SUPN market-implied 1-standard-deviation expected move is approximately 9.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on SUPN?: Straddles on SUPN are pure-volatility plays that profit from large moves in either direction; traders typically buy SUPN 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 SUPN implied volatility affect this straddle?: SUPN ATM IV is at 32.50% with IV rank near 3.57%, 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.