How are VAC 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 VAC 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 -$790.25 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VAC straddle?

The breakeven for the VAC straddle priced on this page is roughly $96.93 and $113.08 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 VAC 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 VAC implied volatility affect this straddle?

VAC ATM IV is at 44.30% with IV rank near 33.33%, 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.

VAC Straddle Strategy

VAC (Marriott Vacations Worldwide Corporation), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NYSE.

Marriott Vacations Worldwide Corporation is a prominent global leisure company specializing in the development, marketing, sale, and management of vacation ownership products and associated offerings. Its business operations are structured around two core divisions: Vacation Ownership, and Exchange & Third-Party Management. The corporation oversees numerous vacation ownership brands, including Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Residence Club, and Marriott Vacation Club Pulse. Additionally, it is engaged in the creation, promotion, and sale of timeshare products under The Ritz-Carlton Destination Club brand, and holds the rights to develop, market, and sell luxury residential ownership properties bearing The Ritz-Carlton Residences name. Beyond its core ventures, the enterprise provides exchange networks and membership programs, alongside offering management services to external resorts and lodging facilities through various affiliated brands, such as Interval International, Trading Places International, Vacation Resorts International, and Aqua-Aston. As of December 31, 2021, Marriott Vacations Worldwide maintained a portfolio of approximately 120 properties located across the United States and thirteen other international territories.

VAC (Marriott Vacations Worldwide Corporation) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $3.48B, a beta of 1.26 versus the broader market, a 52-week range of 44.58-102, average daily share volume of 514K, a public-listing history dating back to 2011, approximately 22K full-time employees. These structural characteristics shape how VAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.26 places VAC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VAC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on VAC?

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 VAC snapshot

As of June 30, 2026, spot at $102.59, ATM IV 44.30%, IV rank 33.33%, expected move 12.70%. The straddle on VAC 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 VAC specifically: VAC IV at 44.30% 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 12.70% (roughly $13.03 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 VAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on VAC should anchor to the underlying notional of $102.59 per share and to the trader's directional view on VAC stock.

VAC straddle setup

The VAC 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 VAC near $102.59, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VAC 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 VAC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$2.88
Buy 1	Put	$105.00	$5.20

VAC straddle risk and reward

Net Premium / Debit: -$807.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$790.25
Breakeven(s): $96.93, $113.08
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.

VAC straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on VAC. 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%	+$9,691.50
$22.69	-77.9%	+$7,423.29
$45.37	-55.8%	+$5,155.08
$68.06	-33.7%	+$2,886.87
$90.74	-11.6%	+$618.66
$113.42	+10.6%	+$34.56
$136.10	+32.7%	+$2,302.77
$158.78	+54.8%	+$4,570.98
$181.47	+76.9%	+$6,839.19
$204.15	+99.0%	+$9,107.40

When traders use straddle on VAC

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

VAC thesis for this straddle

The market-implied 1-standard-deviation range for VAC extends from approximately $89.56 on the downside to $115.62 on the upside. A VAC 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 VAC IV rank near 33.33% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on VAC should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, VAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VAC-specific events.

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

Frequently asked questions

What is a straddle on VAC?: A straddle on VAC is the straddle strategy applied to VAC (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 VAC stock trading near $102.59, the strikes shown on this page are snapped to the nearest listed VAC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VAC 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 VAC 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 -$790.25 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VAC straddle?: The breakeven for the VAC straddle priced on this page is roughly $96.93 and $113.08 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 VAC 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 VAC?: Straddles on VAC are pure-volatility plays that profit from large moves in either direction; traders typically buy VAC 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 VAC implied volatility affect this straddle?: VAC ATM IV is at 44.30% with IV rank near 33.33%, 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.