Straddle Break-Even Calculator
Find the upper and lower break-even prices and the move needed for a long straddle to pay off.
How it works
Total premium = call + put · Upper BE = strike + total · Lower BE = strike − total · Move % = total ÷ strike × 100
A long straddle buys a call and a put at the same strike, betting on a large move in either direction. It pays off only if the underlying moves far enough to recover the combined premium, so the break-evens sit one full premium above and below the strike. The worst case is both options expiring at the strike, losing the entire debit. Straddles are effectively a bet that realised volatility will exceed the volatility priced into the options.
Worked example
Buy the $100 straddle: $5 call + $4 put = $9 total. Upper break-even = 100 + 9 = $109; lower = 100 − 9 = $91. The stock must move at least 9 ÷ 100 = 9% for the trade to profit.
Frequently asked questions
Why buy a straddle instead of just a call or put?
A straddle profits from a big move without needing to guess the direction. That flexibility costs more — you pay two premiums — so the underlying has to move further than for a single option to break even.
What is the maximum loss?
The total premium paid, which occurs if the stock closes exactly at the strike so both options expire worthless. Losses shrink as the stock moves in either direction toward a break-even.
How does implied volatility affect a straddle?
Higher implied volatility raises both premiums, widening the break-evens. A straddle bought when volatility is cheap and sold after it rises can profit even without a large price move.
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Educational estimate, not investment advice. Options and leveraged positions carry substantial risk.