CNBS Straddle Strategy
CNBS (Amplify Seymour Cannabis ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
CNBS is an actively managed exchange-traded fund designed to offer broad U.S. market access to the cannabis sector. It invests across the diverse landscape of this industry, encompassing companies involved in cannabis cultivation (plants), essential operational support, and various ancillary businesses. The primary aim of CNBS is to generate capital appreciation for its investors.
CNBS (Amplify Seymour Cannabis ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $91.8M, a beta of 0.86 versus the broader market, a 52-week range of 14.6-43.94, average daily share volume of 13K, a public-listing history dating back to 2019. These structural characteristics shape how CNBS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places CNBS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CNBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on CNBS?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current CNBS snapshot
As of June 30, 2026, spot at $28.43, ATM IV 69.90%, IV rank 24.76%, expected move 20.04%. The straddle on CNBS below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.
Why this straddle structure on CNBS specifically: CNBS IV at 69.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CNBS straddle, with a market-implied 1-standard-deviation move of approximately 20.04% (roughly $5.70 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CNBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNBS should anchor to the underlying notional of $28.43 per share and to the trader's directional view on CNBS etf.
CNBS straddle setup
The CNBS straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CNBS near $28.43, the first option leg uses a $28.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNBS chain at a 52-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 CNBS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $28.00 | $3.50 |
| Buy 1 | Put | $28.00 | $2.80 |
CNBS straddle risk and reward
- Net Premium / Debit
- -$630.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$629.35
- Breakeven(s)
- $21.70, $34.30
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
CNBS straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on CNBS. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$2,169.00 |
| $6.29 | -77.9% | +$1,540.51 |
| $12.58 | -55.8% | +$912.02 |
| $18.86 | -33.6% | +$283.52 |
| $25.15 | -11.5% | -$344.97 |
| $31.43 | +10.6% | -$286.54 |
| $37.72 | +32.7% | +$341.95 |
| $44.00 | +54.8% | +$970.45 |
| $50.29 | +76.9% | +$1,598.94 |
| $56.57 | +99.0% | +$2,227.43 |
When traders use straddle on CNBS
Straddles on CNBS are pure-volatility plays that profit from large moves in either direction; traders typically buy CNBS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CNBS thesis for this straddle
The market-implied 1-standard-deviation range for CNBS extends from approximately $22.73 on the downside to $34.13 on the upside. A CNBS long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current CNBS IV rank near 24.76% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on CNBS at 69.90%. As a Financial Services name, CNBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNBS-specific events.
CNBS straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. CNBS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNBS alongside the broader basket even when CNBS-specific fundamentals are unchanged. Always rebuild the position from current CNBS chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CNBS?
- A straddle on CNBS is the straddle strategy applied to CNBS (etf). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With CNBS etf trading near $28.43, the strikes shown on this page are snapped to the nearest listed CNBS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CNBS straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the CNBS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 69.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$629.35 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CNBS straddle?
- The breakeven for the CNBS straddle priced on this page is roughly $21.70 and $34.30 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CNBS market-implied 1-standard-deviation expected move is approximately 20.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on CNBS?
- Straddles on CNBS are pure-volatility plays that profit from large moves in either direction; traders typically buy CNBS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current CNBS implied volatility affect this straddle?
- CNBS ATM IV is at 69.90% with IV rank near 24.76%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.