Long Straddle Payoff Calculator
Calculate dual breakevens and unlimited volatility expansion payoffs on ATM Call + Put combinations.
Strategy Position Legs (2)
Expiry P&L Visualization
How the Calculation Works
Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.
Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.
Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.
Calculation Formula
Example Calculation
Buy 24,500 Call at ₹180 and 24,500 Put at ₹170 with 50 units.
Combined cost is ₹350 per unit. The trade generates net profit if the underlying finishes either below 24,150 or above 24,850 at expiration.
Assumptions & Parameters
- Both call and put legs are opened at the exact same strike price and expiration date.
Frequently Asked Questions
What is a long straddle?
A long straddle is a market-neutral, high-volatility strategy created by purchasing an equal number of calls and puts at the exact same strike and expiration.
What is the maximum risk on a long straddle?
The maximum loss is 100% of the combined premium paid for both legs. It occurs if the price closes exactly at the strike on expiry.
How are the dual breakeven points calculated?
Lower Breakeven = Strike Price - Total Premium; Upper Breakeven = Strike Price + Total Premium.
When should a trader execute a long straddle?
When expecting explosive market volatility before a major event (earnings, budget, elections) regardless of direction.
What is the biggest risk with a straddle?
Theta (time decay) and volatility crush. If the price moves sideways, both legs decay rapidly towards zero.
Can a long straddle have unlimited profit?
Yes, on the upside there is no ceiling, while on the downside profit is capped only if the asset drops to zero.