How are TPB 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 TPB straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 49.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,456.46 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TPB straddle?

The breakeven for the TPB straddle priced on this page is roughly $75.35 and $104.65 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 TPB market-implied 1-standard-deviation expected move is approximately 14.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TPB implied volatility affect this straddle?

TPB ATM IV is at 49.20% with IV rank near 28.74%, 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.

TPB Straddle Strategy

TPB (Turning Point Brands, Inc.), in the Consumer Defensive sector, (Tobacco industry), listed on NYSE.

Turning Point Brands, Inc., together with its subsidiaries, manufactures, markets, and distributes branded consumer products. The company operates through three segments: Zig-Zag Products, Stoker's Products, and NewGen Products. The Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, make-your-own cigar wraps, and related products under the Zig-Zag brand. The Stoker's Products segment manufactures and markets moist snuff tobacco and loose-leaf chewing tobacco products under the Stoker's, Beech-Nut, Durango, Trophy, and Wind River brands. The NewGen Products segment markets and distributes cannabidiol isolate, liquid vapor products, and other products without tobacco and/or nicotine to individual consumers through VaporFi B2C online platform, as well as non-traditional retail through VaporBeast. It sells its products to wholesale distributors and retail merchants in the independent and chain convenience stores, tobacco outlets, food stores, mass merchandising, and drug stores.

TPB (Turning Point Brands, Inc.) trades in the Consumer Defensive sector, specifically Tobacco, with a market capitalization of approximately $1.74B, a trailing P/E of 31.12, a beta of 0.93 versus the broader market, a 52-week range of 65.8-146.9, average daily share volume of 506K, a public-listing history dating back to 2016, approximately 310 full-time employees. These structural characteristics shape how TPB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.93 places TPB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TPB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on TPB?

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 TPB snapshot

As of May 15, 2026, spot at $89.63, ATM IV 49.20%, IV rank 28.74%, expected move 14.11%. The straddle on TPB 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 63-day expiry.

Why this straddle structure on TPB specifically: TPB IV at 49.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a TPB straddle, with a market-implied 1-standard-deviation move of approximately 14.11% (roughly $12.64 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TPB expiries trade a higher absolute premium for lower per-day decay. Position sizing on TPB should anchor to the underlying notional of $89.63 per share and to the trader's directional view on TPB stock.

TPB straddle setup

The TPB 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 TPB near $89.63, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TPB chain at a 63-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 TPB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$90.00	$7.70
Buy 1	Put	$90.00	$6.95

TPB straddle risk and reward

Net Premium / Debit: -$1,465.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,456.46
Breakeven(s): $75.35, $104.65
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.

TPB straddle payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$7,534.00
$19.83	-77.9%	+$5,552.34
$39.64	-55.8%	+$3,570.68
$59.46	-33.7%	+$1,589.03
$79.28	-11.6%	-$392.63
$99.09	+10.6%	-$555.71
$118.91	+32.7%	+$1,425.95
$138.73	+54.8%	+$3,407.61
$158.54	+76.9%	+$5,389.27
$178.36	+99.0%	+$7,370.92

When traders use straddle on TPB

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

TPB thesis for this straddle

The market-implied 1-standard-deviation range for TPB extends from approximately $76.99 on the downside to $102.27 on the upside. A TPB 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 TPB IV rank near 28.74% 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 TPB at 49.20%. As a Consumer Defensive name, TPB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TPB-specific events.

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

Frequently asked questions

What is a straddle on TPB?: A straddle on TPB is the straddle strategy applied to TPB (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 TPB stock trading near $89.63, the strikes shown on this page are snapped to the nearest listed TPB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TPB 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 TPB straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 49.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,456.46 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TPB straddle?: The breakeven for the TPB straddle priced on this page is roughly $75.35 and $104.65 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 TPB market-implied 1-standard-deviation expected move is approximately 14.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on TPB?: Straddles on TPB are pure-volatility plays that profit from large moves in either direction; traders typically buy TPB 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 TPB implied volatility affect this straddle?: TPB ATM IV is at 49.20% with IV rank near 28.74%, 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.