How are TXT 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 TXT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$395.01 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TXT straddle?

The breakeven for the TXT straddle priced on this page is roughly $88.13 and $96.88 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 TXT market-implied 1-standard-deviation expected move is approximately 7.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TXT implied volatility affect this straddle?

TXT ATM IV is at 27.10% with IV rank near 47.85%, 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.

TXT Straddle Strategy

TXT (Textron Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

Textron Inc. (TXT) is a diverse global enterprise with significant involvement in the aerospace, defense, industrial, and financial sectors. Its Textron Aviation division is responsible for the production, sale, and maintenance of a variety of aircraft, including corporate jets, turboprop and piston-engine planes, and military trainer and defense aircraft. This segment also delivers extensive maintenance, inspection, and repair services, alongside selling commercial aircraft components. The Bell segment stands as a primary provider of military and civilian helicopters, in addition to tiltrotor aircraft, supported by related spare parts and services. Textron Systems focuses on developing and supplying advanced unmanned aerial platforms, sophisticated electronic systems and solutions, specialized marine vessels, piston aircraft engines, realistic live military air-to-air and air-to-ship training systems, weaponry and associated components, and a range of armored and specialty vehicles. Within its Industrial segment, Textron creates specialized plastic fuel containment systems, including innovative pressurized versions designed for hybrid vehicles, clear-vision systems, and plastic tanks for catalytic reduction systems, primarily serving original equipment manufacturers (OEMs) in the automotive sector.

TXT (Textron Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $15.86B, a trailing P/E of 17.21, a beta of 0.91 versus the broader market, a 52-week range of 75.8-101.57, average daily share volume of 1.4M, a public-listing history dating back to 1947, approximately 34K full-time employees. These structural characteristics shape how TXT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places TXT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TXT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on TXT?

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 TXT snapshot

As of June 30, 2026, spot at $91.54, ATM IV 27.10%, IV rank 47.85%, expected move 7.77%. The straddle on TXT 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 17-day expiry.

Why this straddle structure on TXT specifically: TXT IV at 27.10% 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 7.77% (roughly $7.11 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TXT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TXT should anchor to the underlying notional of $91.54 per share and to the trader's directional view on TXT stock.

TXT straddle setup

The TXT 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 TXT near $91.54, the first option leg uses a $92.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TXT chain at a 17-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 TXT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$92.50	$1.78
Buy 1	Put	$92.50	$2.60

TXT straddle risk and reward

Net Premium / Debit: -$437.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$395.01
Breakeven(s): $88.13, $96.88
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.

TXT straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on TXT. 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%	+$8,811.50
$20.25	-77.9%	+$6,787.61
$40.49	-55.8%	+$4,763.72
$60.73	-33.7%	+$2,739.83
$80.97	-11.6%	+$715.94
$101.20	+10.6%	+$432.95
$121.44	+32.7%	+$2,456.84
$141.68	+54.8%	+$4,480.73
$161.92	+76.9%	+$6,504.62
$182.16	+99.0%	+$8,528.51

When traders use straddle on TXT

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

TXT thesis for this straddle

The market-implied 1-standard-deviation range for TXT extends from approximately $84.43 on the downside to $98.65 on the upside. A TXT 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 TXT IV rank near 47.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on TXT should anchor more to the directional view and the expected-move geometry. As a Industrials name, TXT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TXT-specific events.

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

Frequently asked questions

What is a straddle on TXT?: A straddle on TXT is the straddle strategy applied to TXT (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 TXT stock trading near $91.54, the strikes shown on this page are snapped to the nearest listed TXT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TXT 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 TXT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$395.01 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TXT straddle?: The breakeven for the TXT straddle priced on this page is roughly $88.13 and $96.88 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 TXT market-implied 1-standard-deviation expected move is approximately 7.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on TXT?: Straddles on TXT are pure-volatility plays that profit from large moves in either direction; traders typically buy TXT 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 TXT implied volatility affect this straddle?: TXT ATM IV is at 27.10% with IV rank near 47.85%, 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.