How are WBS 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 WBS straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 299.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$258.61 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WBS straddle?

The breakeven for the WBS straddle priced on this page is roughly $77.35 and $82.65 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The WBS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WBS implied volatility affect this straddle?

WBS ATM IV is at 299.30% with IV rank near 59.64%, 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.

WBS Straddle Strategy

WBS (Webster Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.

Webster Financial Corporation functions as the parent entity for Webster Bank, National Association, providing a comprehensive suite of banking, investment, and financial services throughout the United States. Its offerings cater to a diverse clientele, including individual consumers, families, and businesses. The company's operations are divided into three primary divisions: 1. Commercial Banking: This segment delivers core services such as lending, deposit management, and advanced cash management solutions. Its specialized financial products include commercial and industrial loans and leasing, commercial real estate financing, equipment and asset-based lending, along with treasury and payment services. Additionally, it offers extensive wealth management options, including trust services, asset management, financial planning, insurance, retirement solutions, and investment products for business owners, operators, and individual clients. 2.

WBS (Webster Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $12.80B, a trailing P/E of 12.39, a beta of 1.01 versus the broader market, a 52-week range of 52.69-79.74, average daily share volume of 3.7M, a public-listing history dating back to 1986, approximately 5K full-time employees. These structural characteristics shape how WBS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places WBS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on WBS?

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.

WBS snapshot

As of August 14, 2026, spot at $78.87, ATM IV 299.30%, IV rank 59.64%, expected move 3.72%. The straddle on WBS below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this straddle structure on WBS specifically: WBS IV at 299.30% 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 3.72% (roughly $2.93 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on WBS should anchor to the underlying notional of $78.87 per share and to the trader's directional view on WBS stock.

WBS straddle setup

The WBS straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WBS at $78.87 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WBS chain at a 35-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 WBS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$80.00	$1.05
Buy 1	Put	$80.00	$1.60

WBS straddle risk and reward

Net Premium / Debit: -$265.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$258.61
Breakeven(s): $77.35, $82.65
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.

WBS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on WBS. 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%	+$7,734.00
$17.45	-77.9%	+$5,990.25
$34.88	-55.8%	+$4,246.50
$52.32	-33.7%	+$2,502.75
$69.76	-11.6%	+$759.01
$87.20	+10.6%	+$454.74
$104.63	+32.7%	+$2,198.49
$122.07	+54.8%	+$3,942.24
$139.51	+76.9%	+$5,685.99
$156.95	+99.0%	+$7,429.74

When traders use straddle on WBS

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

WBS thesis for this straddle

The market-implied 1-standard-deviation range for WBS extends from approximately $75.94 on the downside to $81.80 on the upside. A WBS 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 WBS IV rank near 59.64% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on WBS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, WBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WBS-specific events.

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

Frequently asked questions

What is a straddle on WBS?: A straddle on WBS is the straddle strategy applied to WBS (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 WBS stock at $78.87 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WBS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are WBS 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 WBS straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 299.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$258.61 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WBS straddle?: The breakeven for the WBS straddle priced on this page is roughly $77.35 and $82.65 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The WBS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on WBS?: Straddles on WBS are pure-volatility plays that profit from large moves in either direction; traders typically buy WBS 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 WBS implied volatility affect this straddle?: WBS ATM IV is at 299.30% with IV rank near 59.64%, 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.