How are WTS 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 WTS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 26.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$4,411.70 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WTS straddle?

The breakeven for the WTS straddle priced on this page is roughly $345.55 and $434.45 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 WTS market-implied 1-standard-deviation expected move is approximately 7.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WTS implied volatility affect this straddle?

WTS ATM IV is at 26.50% with IV rank near 3.22%, 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.

WTS Straddle Strategy

WTS (Watts Water Technologies, Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

Watts Water Technologies, Inc. is a global enterprise that creates, produces, and distributes a comprehensive range of products and systems designed to regulate and optimize the movement and conservation of liquids and energy within and around both commercial and residential structures. Their operations span across the Americas, Europe, Asia-Pacific, the Middle East, and Africa. Their core offerings include various residential and commercial fluid control devices, such as backflow prevention devices, water pressure regulation units, safety valves for temperature and pressure, and thermostatic mixing valves. Additionally, Watts manufactures heating, ventilation, air conditioning (HVAC), and gas-related equipment. This extensive category encompasses boilers, water heating units, customized heating and hot water solutions, and both hydronic and electric underfloor radiant heating systems. They also supply hydronic pump assemblies for boiler producers and alternative energy control systems, alongside flexible stainless steel connectors for natural and LP gas used in commercial kitchens and homes.

WTS (Watts Water Technologies, Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $12.00B, a trailing P/E of 32.85, a beta of 1.18 versus the broader market, a 52-week range of 242.77-375.89, average daily share volume of 378K, a public-listing history dating back to 1986, approximately 5K full-time employees. These structural characteristics shape how WTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places WTS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WTS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on WTS?

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 WTS snapshot

As of June 30, 2026, spot at $391.63, ATM IV 26.50%, IV rank 3.22%, expected move 7.60%. The straddle on WTS 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 80-day expiry.

Why this straddle structure on WTS specifically: WTS IV at 26.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a WTS straddle, with a market-implied 1-standard-deviation move of approximately 7.60% (roughly $29.75 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTS should anchor to the underlying notional of $391.63 per share and to the trader's directional view on WTS stock.

WTS straddle setup

The WTS 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 WTS near $391.63, the first option leg uses a $390.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTS chain at a 80-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 WTS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$390.00	$24.90
Buy 1	Put	$390.00	$19.55

WTS straddle risk and reward

Net Premium / Debit: -$4,445.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$4,411.70
Breakeven(s): $345.55, $434.45
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.

WTS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on WTS. 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%	+$34,554.00
$86.60	-77.9%	+$25,894.95
$173.19	-55.8%	+$17,235.91
$259.78	-33.7%	+$8,576.86
$346.37	-11.6%	-$82.18
$432.96	+10.6%	-$148.77
$519.55	+32.7%	+$8,510.27
$606.14	+54.8%	+$17,169.32
$692.73	+76.9%	+$25,828.36
$779.32	+99.0%	+$34,487.41

When traders use straddle on WTS

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

WTS thesis for this straddle

The market-implied 1-standard-deviation range for WTS extends from approximately $361.88 on the downside to $421.38 on the upside. A WTS 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 WTS IV rank near 3.22% 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 WTS at 26.50%. As a Industrials name, WTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTS-specific events.

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

Frequently asked questions

What is a straddle on WTS?: A straddle on WTS is the straddle strategy applied to WTS (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 WTS stock trading near $391.63, the strikes shown on this page are snapped to the nearest listed WTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WTS 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 WTS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 26.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$4,411.70 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WTS straddle?: The breakeven for the WTS straddle priced on this page is roughly $345.55 and $434.45 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 WTS market-implied 1-standard-deviation expected move is approximately 7.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on WTS?: Straddles on WTS are pure-volatility plays that profit from large moves in either direction; traders typically buy WTS 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 WTS implied volatility affect this straddle?: WTS ATM IV is at 26.50% with IV rank near 3.22%, 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.