NBIG Straddle Strategy
NBIG (Leverage Shares 2x Long NBIS Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
The NBIG, or Leverage Shares 2x Long NBIS Daily ETF, is a daily-resetting, 2x leveraged bull exchange-traded fund. Its primary objective is to appeal to sophisticated investors or active traders who aim to amplify their returns over very brief periods. Specifically, this ETF endeavours to deliver twice (200%) the positive daily movement of the underlying NBIS stock, before accounting for associated management fees and operational expenses.
NBIG (Leverage Shares 2x Long NBIS Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $32.8M, a beta of 7.87 versus the broader market, a 52-week range of 4.51-47.81, average daily share volume of 1.1M, a public-listing history dating back to 2025. These structural characteristics shape how NBIG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 7.87 indicates NBIG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a straddle on NBIG?
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 NBIG snapshot
As of June 30, 2026, spot at $40.27, ATM IV 222.30%, IV rank 48.69%, expected move 63.73%. The straddle on NBIG 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 17-day expiry.
Why this straddle structure on NBIG specifically: NBIG IV at 222.30% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 63.73% (roughly $25.66 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NBIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NBIG should anchor to the underlying notional of $40.27 per share and to the trader's directional view on NBIG etf.
NBIG straddle setup
The NBIG 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 NBIG near $40.27, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NBIG chain at a 17-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 NBIG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $40.00 | $7.65 |
| Buy 1 | Put | $40.00 | $7.55 |
NBIG straddle risk and reward
- Net Premium / Debit
- -$1,520.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,512.73
- Breakeven(s)
- $24.80, $55.20
- 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.
NBIG straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on NBIG. 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% | +$2,479.00 |
| $8.91 | -77.9% | +$1,588.72 |
| $17.82 | -55.8% | +$698.44 |
| $26.72 | -33.7% | -$191.84 |
| $35.62 | -11.5% | -$1,082.13 |
| $44.52 | +10.6% | -$1,067.59 |
| $53.43 | +32.7% | -$177.31 |
| $62.33 | +54.8% | +$712.97 |
| $71.23 | +76.9% | +$1,603.25 |
| $80.14 | +99.0% | +$2,493.53 |
When traders use straddle on NBIG
Straddles on NBIG are pure-volatility plays that profit from large moves in either direction; traders typically buy NBIG straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
NBIG thesis for this straddle
The market-implied 1-standard-deviation range for NBIG extends from approximately $14.61 on the downside to $65.93 on the upside. A NBIG 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 NBIG IV rank near 48.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on NBIG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, NBIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NBIG-specific events.
NBIG 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. NBIG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NBIG alongside the broader basket even when NBIG-specific fundamentals are unchanged. Always rebuild the position from current NBIG chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on NBIG?
- A straddle on NBIG is the straddle strategy applied to NBIG (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 NBIG etf trading near $40.27, the strikes shown on this page are snapped to the nearest listed NBIG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NBIG 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 NBIG straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 222.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,512.73 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NBIG straddle?
- The breakeven for the NBIG straddle priced on this page is roughly $24.80 and $55.20 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 NBIG market-implied 1-standard-deviation expected move is approximately 63.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on NBIG?
- Straddles on NBIG are pure-volatility plays that profit from large moves in either direction; traders typically buy NBIG 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 NBIG implied volatility affect this straddle?
- NBIG ATM IV is at 222.30% with IV rank near 48.69%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.