How are UBS 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 UBS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$821.38 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UBS straddle?

The breakeven for the UBS straddle priced on this page is roughly $41.55 and $58.45 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 UBS market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UBS implied volatility affect this straddle?

UBS ATM IV is at 24.10% with IV rank near 16.41%, 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.

UBS Straddle Strategy

UBS (UBS Group AG), in the Financial Services sector, (Banks - Diversified industry), listed on NYSE.

UBS Group AG, a financial services giant headquartered in Zurich, Switzerland, since its founding in 1862 (and known as UBS AG until its name change in December 2014), delivers a comprehensive range of financial advice and solutions to a global clientele of private individuals, institutions, and corporations. The firm structures its operations across four primary business segments: The Global Wealth Management division caters specifically to affluent and ultra-high-net-worth clients. It provides sophisticated investment guidance, various lending products, including mortgages and securities-based loans, and extensive planning services encompassing estate and wealth management, philanthropy, corporate and banking services, and family advisory. Through its Personal & Corporate Banking arm, UBS supports individual clients with essential banking services like deposits, cards, and digital platforms, alongside financing, investment opportunities, and retirement solutions. For corporate and institutional clients, this division furnishes a wide array of solutions, spanning equity and debt capital market activities, syndicated and structured credit facilities, private placements, leasing, traditional financing, international trade and export finance, global custody, and transactional banking for payments and liquidity management. The Asset Management division specializes in a broad spectrum of investment strategies, encompassing equities, fixed income, hedge funds, real estate, and private market assets.

UBS (UBS Group AG) trades in the Financial Services sector, specifically Banks - Diversified, with a market capitalization of approximately $160.91B, a trailing P/E of 19.56, a beta of 0.84 versus the broader market, a 52-week range of 33.48-51.24, average daily share volume of 2.4M, a public-listing history dating back to 2000, approximately 107K full-time employees. These structural characteristics shape how UBS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.84 places UBS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on UBS?

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 UBS snapshot

As of June 30, 2026, spot at $49.51, ATM IV 24.10%, IV rank 16.41%, expected move 6.91%. The straddle on UBS 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 199-day expiry.

Why this straddle structure on UBS specifically: UBS IV at 24.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a UBS straddle, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $3.42 on the underlying). The 199-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBS should anchor to the underlying notional of $49.51 per share and to the trader's directional view on UBS stock.

UBS straddle setup

The UBS 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 UBS near $49.51, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UBS chain at a 199-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 UBS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$50.00	$4.55
Buy 1	Put	$50.00	$3.90

UBS straddle risk and reward

Net Premium / Debit: -$845.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$821.38
Breakeven(s): $41.55, $58.45
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.

UBS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on UBS. 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%	+$4,154.00
$10.96	-77.9%	+$3,059.42
$21.90	-55.8%	+$1,964.83
$32.85	-33.7%	+$870.25
$43.79	-11.5%	-$224.33
$54.74	+10.6%	-$371.09
$65.68	+32.7%	+$723.50
$76.63	+54.8%	+$1,818.08
$87.58	+76.9%	+$2,912.66
$98.52	+99.0%	+$4,007.25

When traders use straddle on UBS

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

UBS thesis for this straddle

The market-implied 1-standard-deviation range for UBS extends from approximately $46.09 on the downside to $52.93 on the upside. A UBS 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 UBS IV rank near 16.41% 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 UBS at 24.10%. As a Financial Services name, UBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBS-specific events.

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

Frequently asked questions

What is a straddle on UBS?: A straddle on UBS is the straddle strategy applied to UBS (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 UBS stock trading near $49.51, the strikes shown on this page are snapped to the nearest listed UBS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UBS 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 UBS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$821.38 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UBS straddle?: The breakeven for the UBS straddle priced on this page is roughly $41.55 and $58.45 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 UBS market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on UBS?: Straddles on UBS are pure-volatility plays that profit from large moves in either direction; traders typically buy UBS 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 UBS implied volatility affect this straddle?: UBS ATM IV is at 24.10% with IV rank near 16.41%, 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.