Straddle Calculator (Options)
This Straddle Options Calculator analyzes long and short straddle positions (call and put at the same strike) and returns initial cost or credit, profit or loss at expiration, and breakeven prices. It is intended for scenario analysis and educational use, not as trading advice.
The tool separates position types (long vs short), shows explicit commissions, and reports breakeven points so you can understand both limited and unlimited risk profiles.
Governance
Record 87a3952ae2d2 • Reviewed by Fidamen Standards Committee
Buy one call and one put at the same strike. Calculates initial cost, profit/loss at expiration, and breakeven prices.
Inputs
Advanced inputs
Advanced inputs
Results
Initial cost (total)
$701.30
Profit / Loss at expiration
-$701.30
Lower breakeven
$93.00
Upper breakeven
$107.00
| Output | Value | Unit |
|---|---|---|
| Initial cost (total) | $701.30 | USD |
| Profit / Loss at expiration | -$701.30 | USD |
| Lower breakeven | $93.00 | USD |
| Upper breakeven | $107.00 | USD |
Visualization
Methodology
Calculations use elementary option payoff mathematics at expiration: payoff is the sum of call and put intrinsic values minus the net premium paid or plus the net premium received. For long positions the tool reports net cash outflow (cost). For short positions it reports net cash inflow (credit) and highlights downside/upside risk.
Numerical implementation and software quality follow established guidance: numerical formats adhere to IEEE 754 floating-point conventions; development and validation practices align with ISO 9001 quality management principles; cryptographic and secure handling recommendations reference NIST cybersecurity guidance; and user safety and warnings reference general workplace safety guidance principles. See citations for authoritative sources.
Worked examples
Example 1 — Long straddle: underlying price 100, strike 100, call premium 3.50, put premium 3.50, one contract. Total premium 7.00. Initial cost about 700 plus commissions. Breakeven levels 93.00 and 107.00. Profit occurs if the price ends below 93 or above 107 at expiration.
Example 2 — Short straddle: same inputs but sold. Initial credit about 700 minus commissions. Loss is potentially unlimited if the underlying rises above the upper breakeven or large if it falls below the lower breakeven.
F.A.Q.
Does this calculator price options using Black-Scholes or implied volatility?
No. This tool computes payoff at expiration from premiums you enter. It does not compute theoretical option prices from volatility. For model-derived Greeks or theoretical pricing, use a dedicated pricing calculator that models implied volatility and time value.
Are transaction costs and margin included?
Commission per leg is included in initial cost/credit. Margin requirements and pattern day-trading or broker margin rules are not modeled; consult your broker for margin specifics.
How accurate are numeric results?
Results are arithmetic calculations based on your inputs. Numerical rounding follows IEEE floating-point rules; display rounding is to two decimal places for currency. Validate significant decisions with your own risk checks and, if required, institution-grade pricing tools.
Is this a recommendation to trade?
No. This calculator is educational and analytical. It does not account for liquidity, slippage, execution risk, or tax consequences. Consult a licensed financial professional for personalized advice.
Sources & citations
- IEEE - Floating-Point Standard (IEEE 754) — https://www.ieee.org
- NIST - Computer Security and Validation Guidance — https://www.nist.gov
- ISO - Quality Management Systems (ISO 9001) — https://www.iso.org
- OSHA - Worker Safety Guidance — https://www.osha.gov
- OCC — Options Clearing Corporation — https://www.theocc.com/
- CBOE — Options Education — https://www.cboe.com/education/
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: 87a3952ae2d2What changed (latest)
v1.0.0 • 2025-11-21 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-21 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 21, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-21 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: f3dfdce6fab6