WPRT Straddle Strategy
WPRT (Westport Fuel Systems Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications worldwide. The company operates through Original Equipment Manufacturer and Independent Aftermarket segments. It offers alternative fuel systems and components, which include a range of alternative fuels, such as liquefied petroleum gas, compressed natural gas, liquefied natural gas, renewable natural gas, and hydrogen; and independent aftermarket, light and heavy-duty original equipment manufacturers (OEMs) and delayed OEMs, electronics, hydrogen, and fuel storage activities. The company also provides Westport High Pressure Direct Injection 2.0, a fully integrated fuel systems that enables diesel engines using primarily natural gas fuel to match the power, torque, and fuel economy benefits found in traditional compression ignition diesel engines, which reduces greenhouse gas emissions. Its products and services are used for passenger cars; light-, medium-, and heavy-duty trucks; and cryogenics and hydrogen applications under the Cummins Westport, BRC Gas Equipment, Westport, OMVL, Prins, GFi Control systems, Emer, Zavoli, TA Gas Technology, Valtek, and AFS brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016.
WPRT (Westport Fuel Systems Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $34.2M, a beta of 2.19 versus the broader market, a 52-week range of 1.54-4.15, average daily share volume of 38K, a public-listing history dating back to 2008, approximately 2K full-time employees. These structural characteristics shape how WPRT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.19 indicates WPRT 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 WPRT?
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 WPRT snapshot
As of May 15, 2026, spot at $1.98, ATM IV 118.60%, IV rank 22.43%, expected move 34.00%. The straddle on WPRT 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 34-day expiry.
Why this straddle structure on WPRT specifically: WPRT IV at 118.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a WPRT straddle, with a market-implied 1-standard-deviation move of approximately 34.00% (roughly $0.67 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WPRT expiries trade a higher absolute premium for lower per-day decay. Position sizing on WPRT should anchor to the underlying notional of $1.98 per share and to the trader's directional view on WPRT stock.
WPRT straddle setup
The WPRT 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 WPRT near $1.98, the first option leg uses a $1.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WPRT chain at a 34-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 WPRT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.98 | N/A |
| Buy 1 | Put | $1.98 | N/A |
WPRT 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.
WPRT straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on WPRT. 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 WPRT
Straddles on WPRT are pure-volatility plays that profit from large moves in either direction; traders typically buy WPRT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
WPRT thesis for this straddle
The market-implied 1-standard-deviation range for WPRT extends from approximately $1.31 on the downside to $2.65 on the upside. A WPRT 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 WPRT IV rank near 22.43% 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 WPRT at 118.60%. As a Consumer Cyclical name, WPRT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WPRT-specific events.
WPRT 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. WPRT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WPRT alongside the broader basket even when WPRT-specific fundamentals are unchanged. Always rebuild the position from current WPRT chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on WPRT?
- A straddle on WPRT is the straddle strategy applied to WPRT (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 WPRT stock trading near $1.98, the strikes shown on this page are snapped to the nearest listed WPRT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WPRT 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 WPRT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 118.60%), 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 WPRT straddle?
- The breakeven for the WPRT straddle priced on this page is no defined breakeven on the modeled curve 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 WPRT market-implied 1-standard-deviation expected move is approximately 34.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on WPRT?
- Straddles on WPRT are pure-volatility plays that profit from large moves in either direction; traders typically buy WPRT 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 WPRT implied volatility affect this straddle?
- WPRT ATM IV is at 118.60% with IV rank near 22.43%, 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.