CTEX Straddle Strategy
CTEX (ProShares - S&P Kensho Cleantech ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This exchange-traded fund is managed by ProShare Advisors with the goal of replicating the performance of its benchmark index. The index itself is composed of companies that are actively developing technologies and products vital for clean energy production, such as solar, wind, geothermal, hydrogen, and hydroelectric power. To achieve its objective, the fund invests directly in all the constituent securities of the index, typically maintaining their approximate weightings. It is categorized as a non-diversified fund.
CTEX (ProShares - S&P Kensho Cleantech ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $5.3M, a beta of 2.17 versus the broader market, a 52-week range of 24.06-51.5, average daily share volume of 2K, a public-listing history dating back to 2021. These structural characteristics shape how CTEX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.17 indicates CTEX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CTEX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on CTEX?
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.
CTEX snapshot
As of August 14, 2026, spot at $35.25, ATM IV 41.70%, IV rank 5.58%, expected move 11.96%. The straddle on CTEX below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this straddle structure on CTEX specifically: CTEX IV at 41.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a CTEX straddle, with a market-implied 1-standard-deviation move of approximately 11.96% (roughly $4.21 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CTEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTEX should anchor to the underlying notional of $35.25 per share and to the trader's directional view on CTEX etf.
CTEX straddle setup
The CTEX straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CTEX at $35.25 on that close, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTEX chain at a 7-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 CTEX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $0.95 |
| Buy 1 | Put | $35.00 | $0.68 |
CTEX straddle risk and reward
- Net Premium / Debit
- -$163.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$155.21
- Breakeven(s)
- $33.37, $36.63
- 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.
CTEX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on CTEX. 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% | +$3,336.00 |
| $7.80 | -77.9% | +$2,556.71 |
| $15.60 | -55.8% | +$1,777.43 |
| $23.39 | -33.6% | +$998.14 |
| $31.18 | -11.5% | +$218.85 |
| $38.97 | +10.6% | +$234.43 |
| $46.77 | +32.7% | +$1,013.72 |
| $54.56 | +54.8% | +$1,793.01 |
| $62.35 | +76.9% | +$2,572.29 |
| $70.15 | +99.0% | +$3,351.58 |
When traders use straddle on CTEX
Straddles on CTEX are pure-volatility plays that profit from large moves in either direction; traders typically buy CTEX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CTEX thesis for this straddle
The market-implied 1-standard-deviation range for CTEX extends from approximately $31.04 on the downside to $39.46 on the upside. A CTEX 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 CTEX IV rank near 5.58% 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 CTEX at 41.70%. As a Financial Services name, CTEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTEX-specific events.
CTEX 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. CTEX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTEX alongside the broader basket even when CTEX-specific fundamentals are unchanged. Always rebuild the position from current CTEX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CTEX?
- A straddle on CTEX is the straddle strategy applied to CTEX (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 CTEX etf at $35.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CTEX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CTEX 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 CTEX straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 41.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$155.21 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CTEX straddle?
- The breakeven for the CTEX straddle priced on this page is roughly $33.37 and $36.63 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CTEX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on CTEX?
- Straddles on CTEX are pure-volatility plays that profit from large moves in either direction; traders typically buy CTEX 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 CTEX implied volatility affect this straddle?
- CTEX ATM IV is at 41.70% with IV rank near 5.58%, 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.