How are TMUS 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 TMUS straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,089.01 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TMUS straddle?

The breakeven for the TMUS straddle priced on this page is roughly $173.60 and $196.40 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 TMUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TMUS implied volatility affect this straddle?

TMUS ATM IV is at 27.50% with IV rank near 41.36%, 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.

TMUS Straddle Strategy

TMUS (T-Mobile US, Inc.), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.

T-Mobile US, Inc., alongside its subsidiaries, offers mobile telecommunications services across the United States, Puerto Rico, and the U.S. Virgin Islands. Catering to approximately 108.7 million subscribers, the company delivers essential voice, messaging, and data connectivity to customers in postpaid, prepaid, and wholesale segments. Beyond services, T-Mobile also supplies a broad array of wireless devices, such as smartphones, wearables, tablets, and other mobile communication gadgets, along with associated accessories. These offerings are marketed under both the T-Mobile and Metro by T-Mobile brands. Direct distribution occurs through its proprietary retail stores, the T-Mobile mobile application, customer service channels, and its official online platforms.

TMUS (T-Mobile US, Inc.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $190.00B, a trailing P/E of 18.15, a beta of 0.33 versus the broader market, a 52-week range of 165.66-261.56, average daily share volume of 5.7M, a public-listing history dating back to 2007, approximately 75K full-time employees. These structural characteristics shape how TMUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.33 indicates TMUS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TMUS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on TMUS?

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.

TMUS snapshot

As of August 14, 2026, spot at $182.75, ATM IV 27.50%, IV rank 41.36%, expected move 7.88%. The straddle on TMUS 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 28-day expiry.

Why this straddle structure on TMUS specifically: TMUS IV at 27.50% 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 7.88% (roughly $14.41 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMUS should anchor to the underlying notional of $182.75 per share and to the trader's directional view on TMUS stock.

TMUS straddle setup

The TMUS 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 TMUS at $182.75 on that close, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMUS chain at a 28-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 TMUS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$185.00	$4.35
Buy 1	Put	$185.00	$7.05

TMUS straddle risk and reward

Net Premium / Debit: -$1,140.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,089.01
Breakeven(s): $173.60, $196.40
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.

TMUS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on TMUS. 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%	+$17,359.00
$40.42	-77.9%	+$13,318.41
$80.82	-55.8%	+$9,277.81
$121.23	-33.7%	+$5,237.22
$161.63	-11.6%	+$1,196.63
$202.04	+10.6%	+$563.96
$242.45	+32.7%	+$4,604.56
$282.85	+54.8%	+$8,645.15
$323.26	+76.9%	+$12,685.74
$363.66	+99.0%	+$16,726.34

When traders use straddle on TMUS

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

TMUS thesis for this straddle

The market-implied 1-standard-deviation range for TMUS extends from approximately $168.34 on the downside to $197.16 on the upside. A TMUS 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 TMUS IV rank near 41.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on TMUS should anchor more to the directional view and the expected-move geometry. As a Communication Services name, TMUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMUS-specific events.

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

Frequently asked questions

What is a straddle on TMUS?: A straddle on TMUS is the straddle strategy applied to TMUS (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 TMUS stock at $182.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TMUS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TMUS 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 TMUS straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,089.01 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TMUS straddle?: The breakeven for the TMUS straddle priced on this page is roughly $173.60 and $196.40 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 TMUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on TMUS?: Straddles on TMUS are pure-volatility plays that profit from large moves in either direction; traders typically buy TMUS 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 TMUS implied volatility affect this straddle?: TMUS ATM IV is at 27.50% with IV rank near 41.36%, 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.