How are UFPT 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 UFPT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,147.01 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UFPT straddle?

The breakeven for the UFPT straddle priced on this page is roughly $198.00 and $242.00 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 UFPT market-implied 1-standard-deviation expected move is approximately 11.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UFPT implied volatility affect this straddle?

UFPT ATM IV is at 40.70% with IV rank near 39.77%, 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.

UFPT Straddle Strategy

UFPT (UFP Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

UFP Technologies, Inc. designs and custom manufactures components, subassemblies, products, and packaging utilizing specialized foams, films, and plastics primarily for the medical market. Its single-use and single-patient devices and components are used in a range of medical devices, disposable wound care products, infection prevention, minimally invasive surgery, wearables, orthopedic soft goods, and orthopedic implant packaging. The company also provides engineered products and components to customers in the automotive, aerospace and defense, consumer, electronics, and industrial markets, which are applied in military uniform and gear components, automotive interior trim, athletic padding, environmentally protective packaging, air filtration, abrasive nail files, and protective cases and inserts. It markets and sells its products in the United States principally through a direct sales force, as well as independent manufacturer representatives. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.

UFPT (UFP Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.70B, a trailing P/E of 24.67, a beta of 1.08 versus the broader market, a 52-week range of 173.86-274.93, average daily share volume of 224K, a public-listing history dating back to 1993, approximately 4K full-time employees. These structural characteristics shape how UFPT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places UFPT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on UFPT?

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 UFPT snapshot

As of May 15, 2026, spot at $215.12, ATM IV 40.70%, IV rank 39.77%, expected move 11.67%. The straddle on UFPT 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 UFPT specifically: UFPT IV at 40.70% 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 11.67% (roughly $25.10 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 UFPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFPT should anchor to the underlying notional of $215.12 per share and to the trader's directional view on UFPT stock.

UFPT straddle setup

The UFPT 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 UFPT near $215.12, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFPT 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 UFPT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$220.00	$9.00
Buy 1	Put	$220.00	$13.00

UFPT straddle risk and reward

Net Premium / Debit: -$2,200.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,147.01
Breakeven(s): $198.00, $242.00
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.

UFPT straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on UFPT. 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%	+$19,799.00
$47.57	-77.9%	+$15,042.69
$95.14	-55.8%	+$10,286.38
$142.70	-33.7%	+$5,530.07
$190.26	-11.6%	+$773.75
$237.83	+10.6%	-$417.44
$285.39	+32.7%	+$4,338.87
$332.95	+54.8%	+$9,095.18
$380.51	+76.9%	+$13,851.49
$428.08	+99.0%	+$18,607.80

When traders use straddle on UFPT

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

UFPT thesis for this straddle

The market-implied 1-standard-deviation range for UFPT extends from approximately $190.02 on the downside to $240.22 on the upside. A UFPT 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 UFPT IV rank near 39.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on UFPT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, UFPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFPT-specific events.

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

Frequently asked questions

What is a straddle on UFPT?: A straddle on UFPT is the straddle strategy applied to UFPT (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 UFPT stock trading near $215.12, the strikes shown on this page are snapped to the nearest listed UFPT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UFPT 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 UFPT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,147.01 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UFPT straddle?: The breakeven for the UFPT straddle priced on this page is roughly $198.00 and $242.00 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 UFPT market-implied 1-standard-deviation expected move is approximately 11.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on UFPT?: Straddles on UFPT are pure-volatility plays that profit from large moves in either direction; traders typically buy UFPT 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 UFPT implied volatility affect this straddle?: UFPT ATM IV is at 40.70% with IV rank near 39.77%, 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.