How are TFX 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 TFX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 35.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$773.90 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TFX straddle?

The breakeven for the TFX straddle priced on this page is roughly $117.20 and $132.80 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 TFX market-implied 1-standard-deviation expected move is approximately 10.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TFX implied volatility affect this straddle?

TFX ATM IV is at 35.50% with IV rank near 3.86%, 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.

TFX Straddle Strategy

TFX (Teleflex Incorporated), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NYSE.

Teleflex Incorporated is a global medical technology company dedicated to designing, developing, manufacturing, and distributing single-use medical devices. These products are crucial for diagnostic and therapeutic procedures, particularly within critical care and surgical environments worldwide. Its comprehensive product portfolio includes: Vascular Access Solutions: Featuring the "Arrow" brand, these include catheters, advanced catheter navigation and tip positioning systems, and intraosseous access systems. They are essential for administering intravenous therapies, monitoring blood pressure, and drawing blood samples, all achievable through a single access point. Interventional Cardiology & Radiology Products: This segment covers various coronary catheters, therapies for structural heart conditions, and devices for peripheral intervention and cardiac assist. Key users include interventional cardiologists, radiologists, and vascular surgeons.

TFX (Teleflex Incorporated) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $5.75B, a beta of 0.82 versus the broader market, a 52-week range of 100.18-139.67, average daily share volume of 761K, a public-listing history dating back to 1980, approximately 14K full-time employees. These structural characteristics shape how TFX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places TFX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TFX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on TFX?

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 TFX snapshot

As of June 30, 2026, spot at $126.97, ATM IV 35.50%, IV rank 3.86%, expected move 10.18%. The straddle on TFX 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 TFX specifically: TFX IV at 35.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a TFX straddle, with a market-implied 1-standard-deviation move of approximately 10.18% (roughly $12.92 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 TFX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TFX should anchor to the underlying notional of $126.97 per share and to the trader's directional view on TFX stock.

TFX straddle setup

The TFX 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 TFX near $126.97, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TFX 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 TFX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$125.00	$4.75
Buy 1	Put	$125.00	$3.05

TFX straddle risk and reward

Net Premium / Debit: -$780.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$773.90
Breakeven(s): $117.20, $132.80
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.

TFX straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on TFX. 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%	+$11,719.00
$28.08	-77.9%	+$8,911.73
$56.16	-55.8%	+$6,104.47
$84.23	-33.7%	+$3,297.20
$112.30	-11.6%	+$489.93
$140.37	+10.6%	+$757.33
$168.45	+32.7%	+$3,564.60
$196.52	+54.8%	+$6,371.86
$224.59	+76.9%	+$9,179.13
$252.66	+99.0%	+$11,986.40

When traders use straddle on TFX

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

TFX thesis for this straddle

The market-implied 1-standard-deviation range for TFX extends from approximately $114.05 on the downside to $139.89 on the upside. A TFX 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 TFX IV rank near 3.86% 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 TFX at 35.50%. As a Healthcare name, TFX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TFX-specific events.

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

Frequently asked questions

What is a straddle on TFX?: A straddle on TFX is the straddle strategy applied to TFX (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 TFX stock trading near $126.97, the strikes shown on this page are snapped to the nearest listed TFX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TFX 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 TFX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 35.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$773.90 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TFX straddle?: The breakeven for the TFX straddle priced on this page is roughly $117.20 and $132.80 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 TFX market-implied 1-standard-deviation expected move is approximately 10.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on TFX?: Straddles on TFX are pure-volatility plays that profit from large moves in either direction; traders typically buy TFX 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 TFX implied volatility affect this straddle?: TFX ATM IV is at 35.50% with IV rank near 3.86%, 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.