TBPH Straddle Strategy

TBPH (Theravance Biopharma, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Theravance Biopharma, Inc., a biopharmaceutical company, discovers, develops, and commercializes respiratory medicines in the United States, Europe, and Asia. The company offers YUPELRI, a once-daily, nebulized long-acting muscarinic antagonist used for the treatment of chronic obstructive pulmonary disease (COPD). Its product portfolio also include Izencitinib, a gut-selective pan-janus kinase (JAK) inhibitor that is in Phase IIb/III clinical trials for the treatment of rheumatoid arthritis, myelofibrosis, and ulcerative colitis, as well as for a range of inflammatory intestinal diseases, including ulcerative colitis and Crohn's disease. In addition, the company's product portfolio comprise Ampreloxetine, an investigational norepinephrine reuptake inhibitor that has completed Phase III study for neurogenic orthostatic hypotension; Nezulcitinib, a lung-selective, nebulized JAK inhibitor, which is in Phase II clinical development for the potential treatment of hospitalized patients with acute lung injury caused by COVID-19; Inhaled ALK5i, a potential inhaled anti-fibrotic agent that is in Phase I for the treatment of idiopathic pulmonary fibrosis; and TD-5202, an investigational, orally administered, gut-selective, irreversible JAK3 inhibitor that is in Phase I clinical study for treatment of inflammatory intestinal diseases. Further, it offers TRELEGY for the treatment of COPD and asthma; Velusetrag, an oral and investigational medicine for gastrointestinal motility disorders; and Selective 5-HT4 Agonist for treatment of gastrointestinal motility disorders. It has a licensing and collaboration agreements with Pfizer Inc., Viatris Inc., Janssen Biotech, Inc., Alfasigma S.p.A, and Takeda Pharmaceutical Company Limited.

TBPH (Theravance Biopharma, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $859.4M, a trailing P/E of 7.46, a beta of 0.19 versus the broader market, a 52-week range of 8.4-21.03, average daily share volume of 620K, a public-listing history dating back to 2014, approximately 97 full-time employees. These structural characteristics shape how TBPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.19 indicates TBPH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 7.46 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a straddle on TBPH?

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 TBPH snapshot

As of May 15, 2026, spot at $16.41, ATM IV 101.70%, IV rank 24.62%, expected move 29.16%. The straddle on TBPH 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 TBPH specifically: TBPH IV at 101.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a TBPH straddle, with a market-implied 1-standard-deviation move of approximately 29.16% (roughly $4.78 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 TBPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TBPH should anchor to the underlying notional of $16.41 per share and to the trader's directional view on TBPH stock.

TBPH straddle setup

The TBPH 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 TBPH near $16.41, the first option leg uses a $16.41 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TBPH 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 TBPH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$16.41	N/A
Buy 1	Put	$16.41	N/A

TBPH 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.

TBPH straddle payoff curve

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

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

TBPH thesis for this straddle

The market-implied 1-standard-deviation range for TBPH extends from approximately $11.63 on the downside to $21.19 on the upside. A TBPH 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 TBPH IV rank near 24.62% 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 TBPH at 101.70%. As a Healthcare name, TBPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TBPH-specific events.

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

Frequently asked questions

What is a straddle on TBPH?: A straddle on TBPH is the straddle strategy applied to TBPH (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 TBPH stock trading near $16.41, the strikes shown on this page are snapped to the nearest listed TBPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TBPH 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 TBPH straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 101.70%), 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 TBPH straddle?: The breakeven for the TBPH 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 TBPH market-implied 1-standard-deviation expected move is approximately 29.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on TBPH?: Straddles on TBPH are pure-volatility plays that profit from large moves in either direction; traders typically buy TBPH 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 TBPH implied volatility affect this straddle?: TBPH ATM IV is at 101.70% with IV rank near 24.62%, 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.