TTEK Straddle Strategy
TTEK (Tetra Tech, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NASDAQ.
Tetra Tech, Inc. provides consulting and engineering services worldwide. The company operates through two segments Government Services Group (GSG) and Commercial/International Services Group (CIG). The GSG segment offers early data collection and monitoring, data analysis and information management, science and engineering applied research, engineering design, project management, and operations and maintenance services; and climate change and energy management consulting, as well as greenhouse gas inventory assessment, certification, reduction, and management services. This segment serves federal, state, and local governments, and development agencies in water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management, and a range of civil infrastructure master planning and engineering design markets. The CIG segment provides early data collection and monitoring, data analysis and information management, feasibility studies and assessments, science and engineering applied research, engineering design, project management, and operations and maintenance services. This segment serves natural resources, energy, and utilities markets, as well as sustainable infrastructure master planning and engineering design markets.
TTEK (Tetra Tech, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $7.02B, a trailing P/E of 15.98, a beta of 1.00 versus the broader market, a 52-week range of 26.45-43.14, average daily share volume of 2.9M, a public-listing history dating back to 1991, approximately 30K full-time employees. These structural characteristics shape how TTEK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places TTEK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TTEK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on TTEK?
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 TTEK snapshot
As of May 15, 2026, spot at $26.12, ATM IV 44.40%, IV rank 6.17%, expected move 12.73%. The straddle on TTEK 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 TTEK specifically: TTEK IV at 44.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a TTEK straddle, with a market-implied 1-standard-deviation move of approximately 12.73% (roughly $3.32 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 TTEK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TTEK should anchor to the underlying notional of $26.12 per share and to the trader's directional view on TTEK stock.
TTEK straddle setup
The TTEK 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 TTEK near $26.12, the first option leg uses a $26.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TTEK 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 TTEK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $26.12 | N/A |
| Buy 1 | Put | $26.12 | N/A |
TTEK straddle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
TTEK straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on TTEK. 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.
When traders use straddle on TTEK
Straddles on TTEK are pure-volatility plays that profit from large moves in either direction; traders typically buy TTEK straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
TTEK thesis for this straddle
The market-implied 1-standard-deviation range for TTEK extends from approximately $22.80 on the downside to $29.44 on the upside. A TTEK 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 TTEK IV rank near 6.17% 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 TTEK at 44.40%. As a Industrials name, TTEK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TTEK-specific events.
TTEK 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. TTEK positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TTEK alongside the broader basket even when TTEK-specific fundamentals are unchanged. Always rebuild the position from current TTEK chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on TTEK?
- A straddle on TTEK is the straddle strategy applied to TTEK (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 TTEK stock trading near $26.12, the strikes shown on this page are snapped to the nearest listed TTEK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TTEK 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 TTEK straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 44.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TTEK straddle?
- The breakeven for the TTEK straddle priced on this page is no defined breakeven on the modeled curve 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 TTEK market-implied 1-standard-deviation expected move is approximately 12.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on TTEK?
- Straddles on TTEK are pure-volatility plays that profit from large moves in either direction; traders typically buy TTEK 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 TTEK implied volatility affect this straddle?
- TTEK ATM IV is at 44.40% with IV rank near 6.17%, 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.