NEMG Straddle Strategy
NEMG (Leverage Shares 2x Long NEM Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Leverage Shares 2x Long NEM Daily ETF (NEMG) is a 2x Daily Leveraged (Bull) ETF designed for active traders seeking to magnify short-term results. The NEMG ETF aims to achieve two times (200%) the daily performance of NEM stock, minus fees and expenses.
NEMG (Leverage Shares 2x Long NEM Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $437,679, a beta of 1.13 versus the broader market, a 52-week range of 13.01-33.47, average daily share volume of 15K, a public-listing history dating back to 2025. These structural characteristics shape how NEMG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places NEMG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on NEMG?
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 NEMG snapshot
As of May 15, 2026, spot at $19.28, ATM IV 89.70%, expected move 25.72%. The straddle on NEMG 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 34-day expiry.
Why this straddle structure on NEMG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for NEMG is inferred from ATM IV at 89.70% alone, with a market-implied 1-standard-deviation move of approximately 25.72% (roughly $4.96 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NEMG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEMG should anchor to the underlying notional of $19.28 per share and to the trader's directional view on NEMG etf.
NEMG straddle setup
The NEMG 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 NEMG near $19.28, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEMG chain at a 34-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 NEMG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $19.00 | $2.28 |
| Buy 1 | Put | $19.00 | $1.90 |
NEMG straddle risk and reward
- Net Premium / Debit
- -$417.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$416.94
- Breakeven(s)
- $14.83, $23.18
- 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.
NEMG straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on NEMG. 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% | +$1,481.50 |
| $4.27 | -77.8% | +$1,055.32 |
| $8.53 | -55.7% | +$629.14 |
| $12.80 | -33.6% | +$202.96 |
| $17.06 | -11.5% | -$223.22 |
| $21.32 | +10.6% | -$185.60 |
| $25.58 | +32.7% | +$240.59 |
| $29.84 | +54.8% | +$666.77 |
| $34.10 | +76.9% | +$1,092.95 |
| $38.37 | +99.0% | +$1,519.13 |
When traders use straddle on NEMG
Straddles on NEMG are pure-volatility plays that profit from large moves in either direction; traders typically buy NEMG straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
NEMG thesis for this straddle
The market-implied 1-standard-deviation range for NEMG extends from approximately $14.32 on the downside to $24.24 on the upside. A NEMG 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. As a Financial Services name, NEMG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEMG-specific events.
NEMG 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. NEMG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEMG alongside the broader basket even when NEMG-specific fundamentals are unchanged. Always rebuild the position from current NEMG chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on NEMG?
- A straddle on NEMG is the straddle strategy applied to NEMG (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 NEMG etf trading near $19.28, the strikes shown on this page are snapped to the nearest listed NEMG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEMG 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 NEMG straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 89.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$416.94 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NEMG straddle?
- The breakeven for the NEMG straddle priced on this page is roughly $14.83 and $23.18 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 NEMG market-implied 1-standard-deviation expected move is approximately 25.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on NEMG?
- Straddles on NEMG are pure-volatility plays that profit from large moves in either direction; traders typically buy NEMG 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 NEMG implied volatility affect this straddle?
- Current NEMG ATM IV is 89.70%; IV rank context is unavailable in the current snapshot.