WTTR Straddle Strategy
WTTR (Select Water Solutions, Inc.), in the Utilities sector, (Regulated Water industry), listed on NYSE.
Select Water Solutions, Inc. engages in the provision of water management and chemical solutions. It operates through the following business segments: Water Infrastructure, Water Services, and Chemical Technologies. The Water Infrastructure segment develops, builds, and operates permanent and semi-permanent infrastructure solutions to support full life cycle water management and waste treatment solutions. The Water Services segment consists of services businesses, including water transfer, flowback and well testing, fluids hauling, water containment and water network automation, primarily serving E&P companies. The Chemical Technologies segment includes logistics and provides a full suite of chemicals used in hydraulic fracturing, stimulation, cementing, pipelines and well completions. The company was founded on November 21, 2016 and is headquartered in Gainesville, TX.
WTTR (Select Water Solutions, Inc.) trades in the Utilities sector, specifically Regulated Water, with a market capitalization of approximately $1.91B, a trailing P/E of 93.57, a beta of 0.98 versus the broader market, a 52-week range of 7.815-18.5, average daily share volume of 2.0M, a public-listing history dating back to 2017, approximately 4K full-time employees. These structural characteristics shape how WTTR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places WTTR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 93.57 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. WTTR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on WTTR?
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 WTTR snapshot
As of May 15, 2026, spot at $18.91, ATM IV 49.90%, IV rank 25.48%, expected move 14.31%. The straddle on WTTR 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 WTTR specifically: WTTR IV at 49.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a WTTR straddle, with a market-implied 1-standard-deviation move of approximately 14.31% (roughly $2.71 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 WTTR expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTTR should anchor to the underlying notional of $18.91 per share and to the trader's directional view on WTTR stock.
WTTR straddle setup
The WTTR 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 WTTR near $18.91, the first option leg uses a $18.91 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTTR 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 WTTR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $18.91 | N/A |
| Buy 1 | Put | $18.91 | N/A |
WTTR 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.
WTTR straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on WTTR. 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 WTTR
Straddles on WTTR are pure-volatility plays that profit from large moves in either direction; traders typically buy WTTR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
WTTR thesis for this straddle
The market-implied 1-standard-deviation range for WTTR extends from approximately $16.20 on the downside to $21.62 on the upside. A WTTR 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 WTTR IV rank near 25.48% 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 WTTR at 49.90%. As a Utilities name, WTTR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTTR-specific events.
WTTR 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. WTTR positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WTTR alongside the broader basket even when WTTR-specific fundamentals are unchanged. Always rebuild the position from current WTTR chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on WTTR?
- A straddle on WTTR is the straddle strategy applied to WTTR (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 WTTR stock trading near $18.91, the strikes shown on this page are snapped to the nearest listed WTTR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WTTR 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 WTTR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 49.90%), 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 WTTR straddle?
- The breakeven for the WTTR 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 WTTR market-implied 1-standard-deviation expected move is approximately 14.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on WTTR?
- Straddles on WTTR are pure-volatility plays that profit from large moves in either direction; traders typically buy WTTR 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 WTTR implied volatility affect this straddle?
- WTTR ATM IV is at 49.90% with IV rank near 25.48%, 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.