Measure the debit, break-even range, and maximum loss for a same-strike call and put.
Position inputs
Manual values work without a market-data connection.
Strategy summary
Expiration payoff metrics.
Total debit per share
$8.00
Total debit
$800.00
Lower break-even
$92.00
Upper break-even
$108.00
Maximum loss
$800.00
Profit potential
Unlimited
Methodology
Potential profit is theoretically unlimited on the upside and substantial on the downside. This expiration payoff does not model time value or volatility changes before expiration.
How this calculator works
A long straddle buys a call and put at the same strike and expiration to position for a large move in either direction.
How to use it
Start with the shared strike and both premiums, then use the price-and-time scenarios to see how much movement is needed. Treat the two break-evens as expiration references, not as a guarantee that an early exit will be profitable.
Formula, payoff, and assumptions
Total debit is call premium plus put premium; break-evens are strike minus debit and strike plus debit.
The break-even range is an expiration calculation. Before expiry, the call and put retain time value, so a price inside the range can still produce a different mark-to-market result.
Practical example
A $100 call and $100 put bought for $4 each cost $8 per share and break even near $92 and $108 at expiration.
Reading this result
The two break-evens frame the expiration move needed to recover the combined debit. Before expiration, changes in implied volatility can matter as much as the underlying’s direction.
Common planning mistake
Do not compare a straddle’s cost only with its single strike. Its cost reflects buying two options, so a small move in either direction may still be insufficient.
Risk and limitations
The combined debit can be lost if the underlying finishes near the shared strike. Time decay and IV changes matter before expiration.
