Cato Corp (CATO) Straddle

Trading a CATO straddle lets you take a pure volatility position on Cato Corp without committing to a direction. Cato Corp's straddle involves buying (or selling) a call and a put at the same strike and expiration, profiting when the stock moves more (or less) than the combined premium implies. Use our scanner to evaluate CATO straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on CATO profits from large moves in either direction and is a classic play into binary events like earnings, product announcements, or macro releases. A short straddle profits when Cato Corp stays range-bound and implied volatility contracts. The breakeven points are simple: strike plus total premium on the upside, strike minus total premium on the downside. Comparing the CATO straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit. The company's stores and e-commerce websites offer a range of apparel and accessories, including dressy, career, and casual sportswear; and dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as men's wear, and lines for kids and infants. It operates its stores and e-commerce websites under the Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro, and Versona names.

As of January 29, 2022, the company operated 1,311 stores in 32 states. It also provides credit card services to its customers, as well as layaway plans for customers who agree to make periodic payments. The company was incorporated in 1946 and is headquartered in Charlotte, North Carolina.

Earnings, product cycles, macro prints — any time volatility itself is the trade, the CATO straddle is the cleanest expression of that view. Our scanner prices every CATO straddle against historical realized moves, flags expirations where the market is overpaying or underpaying for vol, and ranks setups by breakeven width and IV rank. Whether you're long a CATO straddle into a catalyst or short a CATO straddle to harvest decay, the options straddle setups that matter are all in one place.