UIS Straddle Strategy
UIS (Unisys Corporation), in the Technology sector, (Information Technology Services industry), listed on NYSE.
Unisys Corporation, together with its subsidiaries, operates as an information technology services company worldwide. It operates in Digital Workplace Solutions (DWS); Cloud and Infrastructure Solutions (C&I); and Enterprise Computing Solutions (ECS) segments. The DWS segment provides solutions that transform digital workplaces securely and create exceptional end-user experiences. The C&I segment offers solutions that drive modern IT service platforms, cloud applications development, intelligent services, and cybersecurity services. The ECS segment provides solutions that harness secure, continuous high-intensity computing, and enable digital services through software-defined operating environments. Its solutions include Unisys InteliServe, a service solution that transforms traditional service desk into an intelligent, user-centric experience aligned with the needs of the modern digital workplace; Unisys CloudForte, a comprehensive managed service offering to help accelerate the secure move of data and applications to the cloud; PowerSuite, a packaged software tool used by enterprise IT to monitor, analyze, troubleshoot and secure collaboration, and communications multi-platform environments; Unisys ClearPath Forward, a software operating environment for high-intensity enterprise computing; and Unisys Stealth security software, which enables trusted identities to access micro-segmented critical assets and safely communicate through secure and encrypted channels.
UIS (Unisys Corporation) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $226.0M, a beta of 1.61 versus the broader market, a 52-week range of 1.97-5.56, average daily share volume of 842K, a public-listing history dating back to 1972, approximately 16K full-time employees. These structural characteristics shape how UIS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.61 indicates UIS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a straddle on UIS?
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 UIS snapshot
As of May 15, 2026, spot at $2.98, ATM IV 81.30%, IV rank 9.20%, expected move 23.31%. The straddle on UIS 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 UIS specifically: UIS IV at 81.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a UIS straddle, with a market-implied 1-standard-deviation move of approximately 23.31% (roughly $0.69 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 UIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on UIS should anchor to the underlying notional of $2.98 per share and to the trader's directional view on UIS stock.
UIS straddle setup
The UIS 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 UIS near $2.98, the first option leg uses a $2.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UIS 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 UIS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.98 | N/A |
| Buy 1 | Put | $2.98 | N/A |
UIS 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.
UIS straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on UIS. 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 UIS
Straddles on UIS are pure-volatility plays that profit from large moves in either direction; traders typically buy UIS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
UIS thesis for this straddle
The market-implied 1-standard-deviation range for UIS extends from approximately $2.29 on the downside to $3.67 on the upside. A UIS 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 UIS IV rank near 9.20% 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 UIS at 81.30%. As a Technology name, UIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UIS-specific events.
UIS 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. UIS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UIS alongside the broader basket even when UIS-specific fundamentals are unchanged. Always rebuild the position from current UIS chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on UIS?
- A straddle on UIS is the straddle strategy applied to UIS (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 UIS stock trading near $2.98, the strikes shown on this page are snapped to the nearest listed UIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UIS 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 UIS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 81.30%), 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 UIS straddle?
- The breakeven for the UIS 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 UIS market-implied 1-standard-deviation expected move is approximately 23.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on UIS?
- Straddles on UIS are pure-volatility plays that profit from large moves in either direction; traders typically buy UIS 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 UIS implied volatility affect this straddle?
- UIS ATM IV is at 81.30% with IV rank near 9.20%, 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.