Straddle breakeven & implied move calculator
In short
What an event is priced to deliver.
Interactive: straddle breakeven & implied moveMedium
Buy the call and the put at the same strike and you own movement itself. The combined premium tells you exactly how much movement you paid for.
- Straddle cost
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- Upper breakeven
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- Lower breakeven
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- Implied move
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The "implied move" — straddle cost over strike — is how desks read what an event (election, central bank, earnings) is priced to deliver. Works identically for equity options.
The idea behind it
This calculator belongs to FX Derivatives, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.
Instruments it applies to
- FX Option — The right to exchange currencies at a set rate — hedging with the upside left open.
- FX Digital Option — All or nothing: a fixed payout if the rate ends (or trades) beyond a level. Probability, directly priced.
- FX Accumulator — Buy currency at a discount, week after week — until the market moves, and the contract quietly doubles your obligation at the worst moment.
- Target Redemption Forward — A hedge that pays a better rate than the market until it has paid enough — then it stops protecting you and starts multiplying against you.
- Quanto Option — An option on a foreign asset that pays in your own currency at a fixed rate. The FX risk vanishes from the payoff and reappears, priced, as a correlation term.
More calculators from FX Derivatives
- Garman–Kohlhagen FX option pricer — Black–Scholes with two interest rates.