How are WGS 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 WGS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 82.98%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,376.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WGS straddle?

The breakeven for the WGS straddle priced on this page is roughly $55.95 and $84.05 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 WGS market-implied 1-standard-deviation expected move is approximately 23.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WGS implied volatility affect this straddle?

WGS ATM IV is at 82.98% with IV rank near 34.66%, 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.

WGS Straddle Strategy

WGS (GeneDx Holdings Corp.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.

GeneDx Holdings Corp. functions as a health intelligence firm singularly focused on the individual patient. It aims to revolutionize healthcare delivery by deploying advanced artificial intelligence and machine learning capabilities. These sophisticated algorithms are applied to vast, longitudinal clinical and genomic datasets to construct comprehensive, dynamic models of human health, ultimately defining personalized, optimal pathways for each person's well-being. Through its exclusive Centrellis health intelligence platform, the company gains profound insights into both disease states and overall wellness, enabling it to furnish evidence-based solutions for the most critical medical challenges. Eric Schadt established the corporation in October 2015, and its principal offices are located in Stamford, Connecticut.

WGS (GeneDx Holdings Corp.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $2.07B, a beta of 1.97 versus the broader market, a 52-week range of 32.21-170.87, average daily share volume of 1.3M, a public-listing history dating back to 2020, approximately 1K full-time employees. These structural characteristics shape how WGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.97 indicates WGS 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 WGS?

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 WGS snapshot

As of June 29, 2026, spot at $69.93, ATM IV 82.98%, IV rank 34.66%, expected move 23.79%. The straddle on WGS 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 32-day expiry.

Why this straddle structure on WGS specifically: WGS IV at 82.98% 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 23.79% (roughly $16.64 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on WGS should anchor to the underlying notional of $69.93 per share and to the trader's directional view on WGS stock.

WGS straddle setup

The WGS 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 WGS near $69.93, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WGS chain at a 32-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 WGS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$70.00	$6.70
Buy 1	Put	$70.00	$7.35

WGS straddle risk and reward

Net Premium / Debit: -$1,405.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,376.36
Breakeven(s): $55.95, $84.05
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.

WGS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on WGS. 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%	+$5,594.00
$15.47	-77.9%	+$4,047.92
$30.93	-55.8%	+$2,501.84
$46.39	-33.7%	+$955.76
$61.85	-11.5%	-$590.32
$77.31	+10.6%	-$673.60
$92.77	+32.7%	+$872.48
$108.24	+54.8%	+$2,418.56
$123.70	+76.9%	+$3,964.64
$139.16	+99.0%	+$5,510.72

When traders use straddle on WGS

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

WGS thesis for this straddle

The market-implied 1-standard-deviation range for WGS extends from approximately $53.29 on the downside to $86.57 on the upside. A WGS 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 WGS IV rank near 34.66% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on WGS should anchor more to the directional view and the expected-move geometry. As a Healthcare name, WGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WGS-specific events.

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

Frequently asked questions

What is a straddle on WGS?: A straddle on WGS is the straddle strategy applied to WGS (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 WGS stock trading near $69.93, the strikes shown on this page are snapped to the nearest listed WGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WGS 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 WGS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 82.98%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,376.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WGS straddle?: The breakeven for the WGS straddle priced on this page is roughly $55.95 and $84.05 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 WGS market-implied 1-standard-deviation expected move is approximately 23.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on WGS?: Straddles on WGS are pure-volatility plays that profit from large moves in either direction; traders typically buy WGS 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 WGS implied volatility affect this straddle?: WGS ATM IV is at 82.98% with IV rank near 34.66%, 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.