How are ZTS 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 ZTS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$454.12 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ZTS straddle?

The breakeven for the ZTS straddle priced on this page is roughly $65.18 and $74.83 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 ZTS market-implied 1-standard-deviation expected move is approximately 10.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ZTS implied volatility affect this straddle?

ZTS ATM IV is at 36.20% with IV rank near 26.86%, 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.

ZTS Straddle Strategy

ZTS (Zoetis Inc.), in the Healthcare sector, (Drug Manufacturers - General industry), listed on NYSE.

Zoetis Inc. stands as a global leader in animal health, focusing on the research, development, manufacturing, and commercialization of veterinary pharmaceuticals, vaccines, and diagnostic tools. Its comprehensive portfolio serves a broad spectrum of species, encompassing both livestock, including cattle, swine, poultry, fish, and sheep, and beloved companion animals such as dogs, cats, and horses. Among its pharmaceutical offerings are various therapeutic agents. This includes vaccines, vital for preventing respiratory, gastrointestinal, and reproductive diseases by stimulating a targeted immune response; anti-infectives that combat or inhibit the proliferation of bacterial, fungal, or protozoal pathogens; and parasiticides aimed at eradicating both internal and external pests such as fleas, ticks, and various worms. Additional pharmaceuticals address areas such as pain management and sedation, anti-emesis, reproductive health, and oncology. The portfolio also features dermatological solutions for allergic skin conditions and atopic dermatitis, alongside medicated feed additives specifically designed for livestock.

ZTS (Zoetis Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - General, with a market capitalization of approximately $31.88B, a trailing P/E of 12.15, a beta of 0.74 versus the broader market, a 52-week range of 72.38-161.77, average daily share volume of 6.4M, a public-listing history dating back to 2013, approximately 14K full-time employees. These structural characteristics shape how ZTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.74 places ZTS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ZTS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on ZTS?

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 ZTS snapshot

As of June 30, 2026, spot at $72.09, ATM IV 36.20%, IV rank 26.86%, expected move 10.38%. The straddle on ZTS 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 17-day expiry.

Why this straddle structure on ZTS specifically: ZTS IV at 36.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ZTS straddle, with a market-implied 1-standard-deviation move of approximately 10.38% (roughly $7.48 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ZTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZTS should anchor to the underlying notional of $72.09 per share and to the trader's directional view on ZTS stock.

ZTS straddle setup

The ZTS 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 ZTS near $72.09, 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 ZTS chain at a 17-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 ZTS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$70.00	$3.60
Buy 1	Put	$70.00	$1.23

ZTS straddle risk and reward

Net Premium / Debit: -$482.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$454.12
Breakeven(s): $65.18, $74.83
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.

ZTS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on ZTS. 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%	+$6,516.50
$15.95	-77.9%	+$4,922.66
$31.89	-55.8%	+$3,328.82
$47.83	-33.7%	+$1,734.98
$63.76	-11.6%	+$141.14
$79.70	+10.6%	+$487.70
$95.64	+32.7%	+$2,081.54
$111.58	+54.8%	+$3,675.37
$127.52	+76.9%	+$5,269.21
$143.46	+99.0%	+$6,863.05

When traders use straddle on ZTS

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

ZTS thesis for this straddle

The market-implied 1-standard-deviation range for ZTS extends from approximately $64.61 on the downside to $79.57 on the upside. A ZTS 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 ZTS IV rank near 26.86% 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 ZTS at 36.20%. As a Healthcare name, ZTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZTS-specific events.

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

Frequently asked questions

What is a straddle on ZTS?: A straddle on ZTS is the straddle strategy applied to ZTS (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 ZTS stock trading near $72.09, the strikes shown on this page are snapped to the nearest listed ZTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ZTS 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 ZTS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$454.12 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ZTS straddle?: The breakeven for the ZTS straddle priced on this page is roughly $65.18 and $74.83 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 ZTS market-implied 1-standard-deviation expected move is approximately 10.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on ZTS?: Straddles on ZTS are pure-volatility plays that profit from large moves in either direction; traders typically buy ZTS 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 ZTS implied volatility affect this straddle?: ZTS ATM IV is at 36.20% with IV rank near 26.86%, 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.