WOR Straddle Strategy
WOR (Worthington Industries, Inc.), in the Industrials sector, (Manufacturing - Metal Fabrication industry), listed on NYSE.
Worthington Industries, Inc. is an industrial manufacturing firm operating internationally, with a strong foothold in North America. The company's primary focus areas include value-added steel processing, the production of various consumer goods, building materials, and innovative sustainable mobility solutions. Its operations are organized into four distinct divisions: Steel Processing, Consumer Products, Building Products, and Sustainable Energy Solutions. The Steel Processing division specializes in refining flat-rolled steel, supplying it to a diverse range of sectors such as automotive, aerospace, agriculture, appliance manufacturing, construction, energy, and heavy-truck industries. This segment also provides contract steel processing services to steel mills, major industrial consumers, and distribution centers. Through its Consumer Products segment, Worthington offers a variety of tools, outdoor living accessories, and celebration-themed items.
WOR (Worthington Industries, Inc.) trades in the Industrials sector, specifically Manufacturing - Metal Fabrication, with a market capitalization of approximately $2.78B, a trailing P/E of 17.79, a beta of 1.21 versus the broader market, a 52-week range of 45.01-67.8, average daily share volume of 226K, a public-listing history dating back to 1980, approximately 4K full-time employees. These structural characteristics shape how WOR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.21 places WOR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WOR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on WOR?
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.
WOR snapshot
As of August 14, 2026, spot at $58.70, ATM IV 27.70%, IV rank 6.46%, expected move 7.94%. The straddle on WOR below is built from the 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 WOR specifically: WOR IV at 27.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a WOR straddle, with a market-implied 1-standard-deviation move of approximately 7.94% (roughly $4.66 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 WOR expiries trade a higher absolute premium for lower per-day decay. Position sizing on WOR should anchor to the underlying notional of $58.70 per share and to the trader's directional view on WOR stock.
WOR straddle setup
The WOR 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 WOR at $58.70 on that close, the first option leg uses a $58.70 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WOR 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 WOR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $58.70 | N/A |
| Buy 1 | Put | $58.70 | N/A |
WOR straddle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
WOR straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on WOR. 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.
When traders use straddle on WOR
Straddles on WOR are pure-volatility plays that profit from large moves in either direction; traders typically buy WOR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
WOR thesis for this straddle
The market-implied 1-standard-deviation range for WOR extends from approximately $54.04 on the downside to $63.36 on the upside. A WOR 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 WOR IV rank near 6.46% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on WOR at 27.70%. As a Industrials name, WOR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WOR-specific events.
WOR 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. WOR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WOR alongside the broader basket even when WOR-specific fundamentals are unchanged. Always rebuild the position from current WOR chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on WOR?
- A straddle on WOR is the straddle strategy applied to WOR (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 WOR stock at $58.70 on the most recent close, the strikes shown on this page are snapped to the nearest listed WOR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WOR 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 WOR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 27.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WOR straddle?
- The breakeven for the WOR straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 WOR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on WOR?
- Straddles on WOR are pure-volatility plays that profit from large moves in either direction; traders typically buy WOR 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 WOR implied volatility affect this straddle?
- WOR ATM IV is at 27.70% with IV rank near 6.46%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.