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DisclosuresTermsPrivacy

Research & education only — not financial advice.TENK is not a registered investment adviser; calls are impersonal, generated from SEC filings and a delayed/third-party price feed, and may be wrong or out of date. The operator and an affiliated trading operation may hold or trade the securities TENK rates — see Disclosures. Do your own research.

EDGAR® is a registered trademark of the U.S. Securities and Exchange Commission. TENK/calls is an independent service and is not affiliated with, endorsed by, or approved by the U.S. Securities and Exchange Commission.

TTENK/calls
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Home›Options calculator›Short straddle

Short straddle calculator

income

Sell a call and a put at the same at-the-money strike, collecting both premiums. It profits when the stock stays near the strike so both options decay. Losses are unbounded to the upside and very large to the downside — a position only for those who fully accept naked-short risk.

Underlying (optional)
Market inputs

Premiums start as Black-Scholes model values — overwrite them with your broker’s real quotes for exact numbers.

Legs
1 contract = 100 shares
Net credit
$685
Max profit
$680
Max loss
Unlimited
Breakevens
93.15 / 106.85
Profit / loss at expiry
at expiry today (model)
50spot 100.00160
Delta
-6.7
shares-equivalent
Gamma
-9.24
Δ per $1
Theta / day
$11.40
time decay
Vega / 1%
−$22.79
per vol point
P&L by price and date (Black-Scholes, IV 30%)
pricetoday+4d+8d+11d+15d+19d+23d+26dexpiry
130.0−2.4k−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k
125.0−1.9k−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k
120.0−1.4k−1.4k−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k
115.0-887-871-857-848-837-829-823-820-815
110.0-462-434-407-387-363-342-326-320-315
105.0-143-101-57-232677128164185
100.004798139200270354434685
95.0-83-46-82264107149176185
90.0-374-357-341-330-318-310-308-310-315
85.0-800-797-796-797-799-802-807-810-815
80.0−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k
75.0−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k
70.0−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k

Dollar P&L for the whole position. Pre-expiry cells are model values (constant IV); real marks will differ with volatility and skew.

Other strategies

  • Long call
  • Long put
  • Covered call
  • Cash-secured put
  • Bull call spread
  • Bear put spread
  • Iron condor
  • Long straddle
  • Long strangle
  • Collar
  • Bull put spread
  • Bear call spread
  • Butterfly spread (calls)
  • Iron butterfly
  • Protective put
  • Short strangle
  • Call condor
  • Butterfly spread (puts)
  • Call ratio backspread
  • Put ratio backspread
  • Jade lizard

Common questions

What is the maximum loss on a short straddle?
Unlimited. The short call has no upside cap, so a large rally produces theoretically unlimited losses; a crash toward zero produces a very large (though bounded) loss on the short put. This is among the highest-risk option structures.
What is the maximum profit on a short straddle?
The combined premium received, earned in full only if the stock pins the strike exactly at expiry. Profit shrinks as the stock moves either way past the breakevens (strike ± total credit).
Why is a short straddle so risky?
It is short volatility with no protective wings, so an unexpectedly large move — an earnings surprise, a takeover — can cause a loss many times the credit collected. Brokers require substantial margin for exactly this reason.

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Educational model, not trade advice. Options involve substantial risk and are not suitable for every investor — read the OCC’s Characteristics and Risks of Standardized Options. Model values use Black-Scholes with your inputs (constant volatility, European exercise, no dividends) and will differ from live market prices.

Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.