How are WFRD 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 WFRD straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$466.99 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WFRD straddle?

The breakeven for the WFRD straddle priced on this page is roughly $90.30 and $99.70 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 WFRD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WFRD implied volatility affect this straddle?

WFRD ATM IV is at 39.10% with IV rank near 60.61%, 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.

WFRD Straddle Strategy

WFRD (Weatherford International plc), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.

Weatherford International plc is a prominent energy services enterprise that supplies an extensive range of equipment and specialized services on a global scale. The company supports the full lifecycle of oil, geothermal, and natural gas wells, covering initial drilling, thorough evaluation, well completion, ongoing production, and crucial intervention activities. Its operations are organized into two main geographical divisions: the Western Hemisphere and the Eastern Hemisphere. Weatherford's diverse offerings include numerous artificial lift systems, such as reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid configurations, alongside their associated automation and control systems. They also deliver pressure pumping and reservoir stimulation solutions, encompassing acidizing, hydraulic fracturing, cementing, and coiled-tubing interventions. For well assessment, the company provides drill stem testing tools, surface well testing, and multiphase flow measurement services.

WFRD (Weatherford International plc) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $6.65B, a trailing P/E of 18.21, a beta of 0.89 versus the broader market, a 52-week range of 54.685-113.15, average daily share volume of 1.3M, a public-listing history dating back to 2021, approximately 17K full-time employees. These structural characteristics shape how WFRD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.89 places WFRD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WFRD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on WFRD?

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.

WFRD snapshot

As of August 14, 2026, spot at $94.55, ATM IV 39.10%, IV rank 60.61%, expected move 11.21%. The straddle on WFRD 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 7-day expiry.

Why this straddle structure on WFRD specifically: WFRD IV at 39.10% 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 11.21% (roughly $10.60 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WFRD expiries trade a higher absolute premium for lower per-day decay. Position sizing on WFRD should anchor to the underlying notional of $94.55 per share and to the trader's directional view on WFRD stock.

WFRD straddle setup

The WFRD 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 WFRD at $94.55 on that close, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WFRD chain at a 7-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 WFRD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$95.00	$1.88
Buy 1	Put	$95.00	$2.83

WFRD straddle risk and reward

Net Premium / Debit: -$470.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$466.99
Breakeven(s): $90.30, $99.70
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.

WFRD straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on WFRD. 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%	+$9,029.00
$20.91	-77.9%	+$6,938.56
$41.82	-55.8%	+$4,848.12
$62.72	-33.7%	+$2,757.67
$83.63	-11.6%	+$667.23
$104.53	+10.6%	+$483.21
$125.44	+32.7%	+$2,573.65
$146.34	+54.8%	+$4,664.10
$167.25	+76.9%	+$6,754.54
$188.15	+99.0%	+$8,844.98

When traders use straddle on WFRD

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

WFRD thesis for this straddle

The market-implied 1-standard-deviation range for WFRD extends from approximately $83.95 on the downside to $105.15 on the upside. A WFRD 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 WFRD IV rank near 60.61% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on WFRD should anchor more to the directional view and the expected-move geometry. As a Energy name, WFRD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WFRD-specific events.

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

Frequently asked questions

What is a straddle on WFRD?: A straddle on WFRD is the straddle strategy applied to WFRD (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 WFRD stock at $94.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WFRD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are WFRD 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 WFRD straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$466.99 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WFRD straddle?: The breakeven for the WFRD straddle priced on this page is roughly $90.30 and $99.70 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 WFRD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on WFRD?: Straddles on WFRD are pure-volatility plays that profit from large moves in either direction; traders typically buy WFRD 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 WFRD implied volatility affect this straddle?: WFRD ATM IV is at 39.10% with IV rank near 60.61%, 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.