What is the max profit of a short straddle?

Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.

What is the max loss of a short straddle?

Unlimited: the loss keeps growing the further the price moves against it. The calculator gives the figure for your strikes and expiration.

How do I calculate a short straddle's profit and loss?

Open the short straddle in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.

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Short straddle calculator

Neutral. Sell the ATM call and put. Profit if the stock stays near A.

Open in the calculator All strategies

OutlookNeutral

Max profitLimited

Max lossUnlimited

LevelAdvanced

What is a short straddle?

A short straddle collects both premiums and wants a pin at A. A large move either way is undefined risk. Only use it if you accept naked short-option risk.

Legs

Sell a call at A
Sell a put at A

Payoff at expiration, sketched. The live example below has the real prices.

Live example on SPY

Net credit$3,574.00

Max lossUnlimited

Max profit$3,574.00

Chance of profitLocked: ProUpgrade

BreakevensBetween $720.26 − $791.74At expiration

Est. margin$147,626.00

756C−112/18 · $19.20
756P−112/18 · $16.54

SPY · Oct 30, 2026, 3:59 PM ET

With SPY at 755.53, on the Dec 18 expiration (49 days out): sell 1 756 call and sell 1 756 put. Net credit $3,574. Max profit $3,574; max loss unlimited. Breakevens at expiration: Between $720.26 − $791.74.

Open this short straddle in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.

Questions

What is a short straddle?: A short straddle collects both premiums and wants a pin at A. A large move either way is undefined risk. Only use it if you accept naked short-option risk.
When does a short straddle make money?: Neutral. Sell the ATM call and put. Profit if the stock stays near A.
What is the max profit of a short straddle?: Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.
What is the max loss of a short straddle?: Unlimited: the loss keeps growing the further the price moves against it. The calculator gives the figure for your strikes and expiration.
How do I calculate a short straddle's profit and loss?: Open the short straddle in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.