KURE Straddle Strategy
KURE (KraneShares MSCI All China Health Care Index ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
This exchange-traded fund will allocate at least 80% of its net assets, including any capital acquired through borrowing for investment purposes, to financial instruments that are components of its underlying index or exhibit similar economic characteristics. The reference index is a market capitalization-weighted measure, adjusted for free float, and applies a 10/40 Constraint. Its objective is to gauge the equity market performance of Chinese enterprises within the healthcare sector. This fund does not maintain a diversified portfolio.
KURE (KraneShares MSCI All China Health Care Index ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $107.1M, a beta of 0.43 versus the broader market, a 52-week range of 14.38-21.875, average daily share volume of 42K, a public-listing history dating back to 2018. These structural characteristics shape how KURE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.43 indicates KURE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KURE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on KURE?
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.
KURE snapshot
As of August 14, 2026, spot at $18.34, ATM IV 39.80%, IV rank 11.81%, expected move 11.41%. The straddle on KURE 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 KURE specifically: KURE IV at 39.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a KURE straddle, with a market-implied 1-standard-deviation move of approximately 11.41% (roughly $2.09 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 KURE expiries trade a higher absolute premium for lower per-day decay. Position sizing on KURE should anchor to the underlying notional of $18.34 per share and to the trader's directional view on KURE etf.
KURE straddle setup
The KURE 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 KURE at $18.34 on that close, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KURE 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 KURE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $18.00 | $1.19 |
| Buy 1 | Put | $18.00 | $0.84 |
KURE straddle risk and reward
- Net Premium / Debit
- -$203.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$196.14
- Breakeven(s)
- $15.97, $20.03
- 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.
KURE straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on KURE. 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 | -99.9% | +$1,596.00 |
| $4.06 | -77.8% | +$1,190.60 |
| $8.12 | -55.7% | +$785.21 |
| $12.17 | -33.6% | +$379.81 |
| $16.23 | -11.5% | -$25.59 |
| $20.28 | +10.6% | +$24.98 |
| $24.33 | +32.7% | +$430.38 |
| $28.39 | +54.8% | +$835.78 |
| $32.44 | +76.9% | +$1,241.18 |
| $36.50 | +99.0% | +$1,646.57 |
When traders use straddle on KURE
Straddles on KURE are pure-volatility plays that profit from large moves in either direction; traders typically buy KURE straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
KURE thesis for this straddle
The market-implied 1-standard-deviation range for KURE extends from approximately $16.25 on the downside to $20.43 on the upside. A KURE 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 KURE IV rank near 11.81% 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 KURE at 39.80%. As a Financial Services name, KURE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KURE-specific events.
KURE 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. KURE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KURE alongside the broader basket even when KURE-specific fundamentals are unchanged. Always rebuild the position from current KURE chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on KURE?
- A straddle on KURE is the straddle strategy applied to KURE (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 KURE etf at $18.34 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KURE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KURE 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 KURE straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$196.14 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KURE straddle?
- The breakeven for the KURE straddle priced on this page is roughly $15.97 and $20.03 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 KURE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on KURE?
- Straddles on KURE are pure-volatility plays that profit from large moves in either direction; traders typically buy KURE 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 KURE implied volatility affect this straddle?
- KURE ATM IV is at 39.80% with IV rank near 11.81%, 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.