How are URI 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 URI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 44.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$11,348.20 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a URI straddle?

The breakeven for the URI straddle priced on this page is roughly $1,023.90 and $1,256.10 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 URI market-implied 1-standard-deviation expected move is approximately 12.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current URI implied volatility affect this straddle?

URI ATM IV is at 44.30% with IV rank near 80.24%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

URI Straddle Strategy

URI (United Rentals, Inc.), in the Industrials sector, (Rental & Leasing Services industry), listed on NYSE.

United Rentals, Inc., founded in 1997 and headquartered in Stamford, Connecticut, functions as a prominent equipment rental firm through its various subsidiaries. The company's operations are divided into two main divisions: General Rentals and Specialty. The General Rentals segment offers a broad selection of construction and industrial machinery, including heavy equipment like backhoes, skid-steer loaders, earthmoving machinery, and forklifts, alongside aerial work platforms such as boom and scissor lifts. This division also provides general tools and lighter equipment, ranging from pressure washers to power tools. Its client base is diverse, encompassing construction and industrial enterprises, manufacturers, utility companies, municipalities, government bodies, and individual homeowners. Conversely, the Specialty segment focuses on more specialized construction products.

URI (United Rentals, Inc.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $70.27B, a trailing P/E of 28.37, a beta of 1.82 versus the broader market, a 52-week range of 701.59-1143.69, average daily share volume of 555K, a public-listing history dating back to 1997, approximately 28K full-time employees. These structural characteristics shape how URI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.82 indicates URI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. URI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on URI?

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 URI snapshot

As of June 30, 2026, spot at $1,136.90, ATM IV 44.30%, IV rank 80.24%, expected move 12.70%. The straddle on URI 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 31-day expiry.

Why this straddle structure on URI specifically: URI IV at 44.30% is rich versus its 1-year range, which makes a premium-buying URI straddle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 12.70% (roughly $144.38 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated URI expiries trade a higher absolute premium for lower per-day decay. Position sizing on URI should anchor to the underlying notional of $1,136.90 per share and to the trader's directional view on URI stock.

URI straddle setup

The URI 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 URI near $1,136.90, the first option leg uses a $1,140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URI chain at a 31-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 URI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$1,140.00	$57.55
Buy 1	Put	$1,140.00	$58.55

URI straddle risk and reward

Net Premium / Debit: -$11,610.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$11,348.20
Breakeven(s): $1,023.90, $1,256.10
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.

URI straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on URI. 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%	+$102,389.00
$251.38	-77.9%	+$77,251.62
$502.76	-55.8%	+$52,114.25
$754.13	-33.7%	+$26,976.87
$1,005.51	-11.6%	+$1,839.49
$1,256.88	+10.6%	+$77.88
$1,508.25	+32.7%	+$25,215.26
$1,759.63	+54.8%	+$50,352.64
$2,011.00	+76.9%	+$75,490.02
$2,262.37	+99.0%	+$100,627.39

When traders use straddle on URI

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

URI thesis for this straddle

The market-implied 1-standard-deviation range for URI extends from approximately $992.52 on the downside to $1,281.28 on the upside. A URI 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 URI IV rank near 80.24% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on URI at 44.30%. As a Industrials name, URI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URI-specific events.

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

Frequently asked questions

What is a straddle on URI?: A straddle on URI is the straddle strategy applied to URI (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 URI stock trading near $1,136.90, the strikes shown on this page are snapped to the nearest listed URI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are URI 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 URI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 44.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$11,348.20 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a URI straddle?: The breakeven for the URI straddle priced on this page is roughly $1,023.90 and $1,256.10 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 URI market-implied 1-standard-deviation expected move is approximately 12.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on URI?: Straddles on URI are pure-volatility plays that profit from large moves in either direction; traders typically buy URI 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 URI implied volatility affect this straddle?: URI ATM IV is at 44.30% with IV rank near 80.24%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.