DPST Long Call Strategy
DPST (Direxion Daily Regional Banks Bull 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily Regional Banks Bull 3X ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the S&P Regional Banks Select Industry Index. There is no guarantee the fund will achieve its stated investment objective.
DPST (Direxion Daily Regional Banks Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $788.0M, a beta of 3.74 versus the broader market, a 52-week range of 70.64-146.09, average daily share volume of 582K, a public-listing history dating back to 2015. These structural characteristics shape how DPST etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.74 indicates DPST has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. DPST pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on DPST?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
Current DPST snapshot
As of May 15, 2026, spot at $102.42, ATM IV 69.88%, IV rank 7.94%, expected move 20.03%. The long call on DPST 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 28-day expiry.
Why this long call structure on DPST specifically: DPST IV at 69.88% is on the cheap side of its 1-year range, which favors premium-buying structures like a DPST long call, with a market-implied 1-standard-deviation move of approximately 20.03% (roughly $20.52 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DPST expiries trade a higher absolute premium for lower per-day decay. Position sizing on DPST should anchor to the underlying notional of $102.42 per share and to the trader's directional view on DPST etf.
DPST long call setup
The DPST long call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DPST near $102.42, the first option leg uses a $102.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DPST chain at a 28-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 DPST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $102.00 | $7.60 |
DPST long call risk and reward
- Net Premium / Debit
- -$760.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$760.00
- Breakeven(s)
- $109.60
- Risk / Reward Ratio
- Unbounded
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
DPST long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on DPST. 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% | -$760.00 |
| $22.65 | -77.9% | -$760.00 |
| $45.30 | -55.8% | -$760.00 |
| $67.94 | -33.7% | -$760.00 |
| $90.59 | -11.6% | -$760.00 |
| $113.23 | +10.6% | +$363.26 |
| $135.88 | +32.7% | +$2,627.71 |
| $158.52 | +54.8% | +$4,892.17 |
| $181.17 | +76.9% | +$7,156.62 |
| $203.81 | +99.0% | +$9,421.07 |
When traders use long call on DPST
Long calls on DPST express a bullish thesis with defined risk; traders use them ahead of DPST catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
DPST thesis for this long call
The market-implied 1-standard-deviation range for DPST extends from approximately $81.90 on the downside to $122.94 on the upside. A DPST long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current DPST IV rank near 7.94% 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 DPST at 69.88%. As a Financial Services name, DPST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DPST-specific events.
DPST long call positions are structurally bullish; 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. DPST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DPST alongside the broader basket even when DPST-specific fundamentals are unchanged. Long-premium structures like a long call on DPST are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current DPST chain quotes before placing a trade.
Frequently asked questions
- What is a long call on DPST?
- A long call on DPST is the long call strategy applied to DPST (etf). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With DPST etf trading near $102.42, the strikes shown on this page are snapped to the nearest listed DPST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DPST long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the DPST long call priced from the end-of-day chain at a 30-day expiry (ATM IV 69.88%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$760.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DPST long call?
- The breakeven for the DPST long call priced on this page is roughly $109.60 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 DPST market-implied 1-standard-deviation expected move is approximately 20.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long call on DPST?
- Long calls on DPST express a bullish thesis with defined risk; traders use them ahead of DPST catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current DPST implied volatility affect this long call?
- DPST ATM IV is at 69.88% with IV rank near 7.94%, 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.