MAGC Straddle Strategy
MAGC (Roundhill Investments - China Magnificent Seven ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The Roundhill China Magnificent Seven ETF (“MAGC”) seeks to offer equal weight exposure to the largest and most innovative Chinese companies (the “China Magnificent Seven”). MAGC currently includes Tencent, PDD Holdings, Alibaba, Meituan, BYD, Xiaomi, and NetEase. MAGC is the first-ever ETF to provide precise exposure to China’s tech leaders.
MAGC (Roundhill Investments - China Magnificent Seven ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $15.3M, a beta of 0.05 versus the broader market, a 52-week range of 19.959-30, average daily share volume of 6K, a public-listing history dating back to 2024. These structural characteristics shape how MAGC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.05 indicates MAGC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. MAGC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on MAGC?
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 MAGC snapshot
As of May 15, 2026, spot at $20.29, ATM IV 41.10%, IV rank 10.61%, expected move 11.78%. The straddle on MAGC 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 126-day expiry.
Why this straddle structure on MAGC specifically: MAGC IV at 41.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a MAGC straddle, with a market-implied 1-standard-deviation move of approximately 11.78% (roughly $2.39 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAGC expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGC should anchor to the underlying notional of $20.29 per share and to the trader's directional view on MAGC etf.
MAGC straddle setup
The MAGC 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 MAGC near $20.29, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGC chain at a 126-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 MAGC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $20.00 | $1.88 |
| Buy 1 | Put | $20.00 | $1.62 |
MAGC straddle risk and reward
- Net Premium / Debit
- -$349.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$348.42
- Breakeven(s)
- $16.51, $23.50
- 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.
MAGC straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on MAGC. 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% | +$1,649.50 |
| $4.50 | -77.8% | +$1,200.99 |
| $8.98 | -55.7% | +$752.47 |
| $13.47 | -33.6% | +$303.96 |
| $17.95 | -11.5% | -$144.55 |
| $22.44 | +10.6% | -$105.94 |
| $26.92 | +32.7% | +$342.58 |
| $31.41 | +54.8% | +$791.09 |
| $35.89 | +76.9% | +$1,239.60 |
| $40.38 | +99.0% | +$1,688.11 |
When traders use straddle on MAGC
Straddles on MAGC are pure-volatility plays that profit from large moves in either direction; traders typically buy MAGC straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
MAGC thesis for this straddle
The market-implied 1-standard-deviation range for MAGC extends from approximately $17.90 on the downside to $22.68 on the upside. A MAGC 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 MAGC IV rank near 10.61% 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 MAGC at 41.10%. As a Financial Services name, MAGC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGC-specific events.
MAGC 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. MAGC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAGC alongside the broader basket even when MAGC-specific fundamentals are unchanged. Always rebuild the position from current MAGC chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on MAGC?
- A straddle on MAGC is the straddle strategy applied to MAGC (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 MAGC etf trading near $20.29, the strikes shown on this page are snapped to the nearest listed MAGC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MAGC 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 MAGC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 41.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$348.42 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MAGC straddle?
- The breakeven for the MAGC straddle priced on this page is roughly $16.51 and $23.50 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 MAGC market-implied 1-standard-deviation expected move is approximately 11.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on MAGC?
- Straddles on MAGC are pure-volatility plays that profit from large moves in either direction; traders typically buy MAGC 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 MAGC implied volatility affect this straddle?
- MAGC ATM IV is at 41.10% with IV rank near 10.61%, 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.