How are TRGP 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 TRGP straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 29.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,943.02 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TRGP straddle?

The breakeven for the TRGP straddle priced on this page is roughly $250.25 and $289.75 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 TRGP market-implied 1-standard-deviation expected move is approximately 8.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TRGP implied volatility affect this straddle?

TRGP ATM IV is at 29.40% with IV rank near 24.28%, 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.

TRGP Straddle Strategy

TRGP (Targa Resources Corp.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of midstream energy assets in North America. The company operates in two segments, Gathering and Processing, and Logistics and Transportation. It engages in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. The company is also involved in the purchase and resale of NGL products; and wholesale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, it offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. The company operates approximately 28,400 miles of natural gas pipelines, including 42 owned and operated processing plants; and owns or operates a total of 34 storage wells with a gross storage capacity of approximately 76 million barrels.

TRGP (Targa Resources Corp.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $56.51B, a trailing P/E of 26.64, a beta of 0.74 versus the broader market, a 52-week range of 144.14-263.38, average daily share volume of 1.5M, a public-listing history dating back to 2010, approximately 3K full-time employees. These structural characteristics shape how TRGP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.74 places TRGP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TRGP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on TRGP?

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 TRGP snapshot

As of May 15, 2026, spot at $271.68, ATM IV 29.40%, IV rank 24.28%, expected move 8.43%. The straddle on TRGP 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 TRGP specifically: TRGP IV at 29.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a TRGP straddle, with a market-implied 1-standard-deviation move of approximately 8.43% (roughly $22.90 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 TRGP expiries trade a higher absolute premium for lower per-day decay. Position sizing on TRGP should anchor to the underlying notional of $271.68 per share and to the trader's directional view on TRGP stock.

TRGP straddle setup

The TRGP 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 TRGP near $271.68, the first option leg uses a $270.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TRGP 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 TRGP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$270.00	$11.05
Buy 1	Put	$270.00	$8.70

TRGP straddle risk and reward

Net Premium / Debit: -$1,975.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,943.02
Breakeven(s): $250.25, $289.75
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.

TRGP straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on TRGP. 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%	+$25,024.00
$60.08	-77.9%	+$19,017.12
$120.15	-55.8%	+$13,010.23
$180.22	-33.7%	+$7,003.35
$240.29	-11.6%	+$996.46
$300.35	+10.6%	+$1,060.42
$360.42	+32.7%	+$7,067.31
$420.49	+54.8%	+$13,074.19
$480.56	+76.9%	+$19,081.08
$540.63	+99.0%	+$25,087.96

When traders use straddle on TRGP

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

TRGP thesis for this straddle

The market-implied 1-standard-deviation range for TRGP extends from approximately $248.78 on the downside to $294.58 on the upside. A TRGP 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 TRGP IV rank near 24.28% 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 TRGP at 29.40%. As a Energy name, TRGP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TRGP-specific events.

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

Frequently asked questions

What is a straddle on TRGP?: A straddle on TRGP is the straddle strategy applied to TRGP (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 TRGP stock trading near $271.68, the strikes shown on this page are snapped to the nearest listed TRGP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TRGP 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 TRGP straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 29.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,943.02 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TRGP straddle?: The breakeven for the TRGP straddle priced on this page is roughly $250.25 and $289.75 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 TRGP market-implied 1-standard-deviation expected move is approximately 8.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on TRGP?: Straddles on TRGP are pure-volatility plays that profit from large moves in either direction; traders typically buy TRGP 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 TRGP implied volatility affect this straddle?: TRGP ATM IV is at 29.40% with IV rank near 24.28%, 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.