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Short Straddle Option Calculator
Sell ATM call and put. Profits if price stays near strike; high risk.
How this Short Straddle calculator works
This free Short Straddle profit calculator estimates profit and loss across stock prices and dates. Use live quotes and the option chain (via the local data proxy), then review max profit, max loss, breakevens, ROI on risk, probability of profit, and a date × price heatmap or numerical matrix.
- At expiration: intrinsic payoff for each option leg (and stock, if included).
- Before expiration: Black–Scholes theoretical value using each leg’s IV and DTE.
- Multi-expiry: near-term legs settle first; longer-dated legs keep remaining time value.
Typical legs for a Short Straddle
Default template legs (edit freely or replace from the option chain):
- Leg 1: sell call @ strike template 100
- Leg 2: sell put @ strike template 100
When traders use a Short Straddle
Market outlook: neutral. Use the calculator to stress-test strikes and premiums before placing an order. Options involve substantial risk of loss and are not suitable for every investor.
Frequently asked questions
What is a Short Straddle options strategy?
Sell ATM call and put. Profits if price stays near strike; high risk.
How do I calculate profit and loss for a Short Straddle?
Enter the underlying price, strikes, premiums, and contracts in the Short Straddle calculator. The tool shows max profit, max loss, breakeven points, and a P/L heatmap from now until expiration using Black–Scholes before expiry and intrinsic value at expiration.
Is the Short Straddle strategy neutral?
This strategy is generally considered neutral in market outlook. Always confirm risk, margin, and assignment rules with your broker before trading.
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