How are TLRY 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 TLRY straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 67.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$76.10 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TLRY straddle?

The breakeven for the TLRY straddle priced on this page is roughly $3.73 and $5.27 at expiration, derived from the August 14, 2026 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 TLRY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TLRY implied volatility affect this straddle?

TLRY ATM IV is at 67.60% with IV rank near 19.90%, 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.

TLRY Straddle Strategy

TLRY (Tilray Brands, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

Tilray Brands, Inc. is a diversified global consumer packaged goods company primarily involved in the cultivation, processing, marketing, and sale of cannabis products. Its operations span a significant international footprint, encompassing Canada, the United States, Europe, Australia, New Zealand, and Latin America. The company organizes its business across four distinct divisions: Cannabis, Distribution, Beverage Alcohol, and Wellness. Within its cannabis division, Tilray provides a comprehensive range of medical and adult-use items, including regulated products like GMP-certified cannabis flowers, oils, vaporizers, edibles, and topical applications. Beyond cannabis, Tilray's portfolio extends to the procurement and resale of pharmaceutical and wellness goods. Furthermore, it manufactures, promotes, and distributes a variety of alcoholic beverages, alongside hemp-derived food and other wellness items.

TLRY (Tilray Brands, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $523.4M, a beta of 1.91 versus the broader market, a 52-week range of 3.67-23.2, average daily share volume of 4.8M, a public-listing history dating back to 2018, approximately 4K full-time employees. These structural characteristics shape how TLRY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.91 indicates TLRY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a straddle on TLRY?

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.

TLRY snapshot

As of August 14, 2026, spot at $4.62, ATM IV 67.60%, IV rank 19.90%, expected move 19.38%. The straddle on TLRY below is built from the August 14, 2026 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 TLRY specifically: TLRY IV at 67.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a TLRY straddle, with a market-implied 1-standard-deviation move of approximately 19.38% (roughly $0.90 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 TLRY expiries trade a higher absolute premium for lower per-day decay. Position sizing on TLRY should anchor to the underlying notional of $4.62 per share and to the trader's directional view on TLRY stock.

TLRY straddle setup

The TLRY straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TLRY at $4.62 on that close, the first option leg uses a $4.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TLRY 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 TLRY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$4.50	$0.42
Buy 1	Put	$4.50	$0.35

TLRY straddle risk and reward

Net Premium / Debit: -$77.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$76.10
Breakeven(s): $3.73, $5.27
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.

TLRY straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on TLRY. 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	-99.8%	+$372.00
$1.03	-77.7%	+$269.96
$2.05	-55.6%	+$167.92
$3.07	-33.5%	+$65.88
$4.09	-11.4%	-$36.16
$5.11	+10.6%	-$15.80
$6.13	+32.7%	+$86.24
$7.15	+54.8%	+$188.28
$8.17	+76.9%	+$290.32
$9.19	+99.0%	+$392.36

When traders use straddle on TLRY

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

TLRY thesis for this straddle

The market-implied 1-standard-deviation range for TLRY extends from approximately $3.72 on the downside to $5.52 on the upside. A TLRY 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 TLRY IV rank near 19.90% 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 TLRY at 67.60%. As a Healthcare name, TLRY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TLRY-specific events.

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

Frequently asked questions

What is a straddle on TLRY?: A straddle on TLRY is the straddle strategy applied to TLRY (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 TLRY stock at $4.62 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TLRY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TLRY 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 TLRY straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 67.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$76.10 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TLRY straddle?: The breakeven for the TLRY straddle priced on this page is roughly $3.73 and $5.27 at expiration, derived from the August 14, 2026 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 TLRY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on TLRY?: Straddles on TLRY are pure-volatility plays that profit from large moves in either direction; traders typically buy TLRY 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 TLRY implied volatility affect this straddle?: TLRY ATM IV is at 67.60% with IV rank near 19.90%, 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.