straddle calculator

Straddle Calculator

The Straddle Calculator can be used to chart theoretical profit and loss (P&L) for straddle positions. Clicking on the chart icon on the Straddle Screener loads the calculator with a selected straddle position.

A straddle consists of a call and a put with the same strike. They are either both long or both short. A long straddle profits when the underlying security moves in either direction, but the move must be significant. A short straddle profits when the underlying security stays relatively stable.

The black line shows the P&L, which is the sum of the P&L for the call and put positions. The green triangle displays the approximate break-even point. General Help with the calculator can be found here.