NVDL Straddle Strategy
NVDL (GraniteShares 2x Long NVDA Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Fund seeks daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of the common stock of NVIDIA Corp, (NASDAQ: NVDA) There is no guarantee that the Fund will meet its stated objective. The fund should not be expected to provide 2 times the cumulative return of NVDA for periods greater than a day.
NVDL (GraniteShares 2x Long NVDA Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.01B, a beta of 3.62 versus the broader market, a 52-week range of 48.08-120.61, average daily share volume of 9.1M, a public-listing history dating back to 2022. These structural characteristics shape how NVDL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.62 indicates NVDL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. NVDL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on NVDL?
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 NVDL snapshot
As of May 15, 2026, spot at $119.27, ATM IV 94.74%, IV rank 72.22%, expected move 27.16%. The straddle on NVDL 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 straddle structure on NVDL specifically: NVDL IV at 94.74% is rich versus its 1-year range, which makes a premium-buying NVDL straddle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 27.16% (roughly $32.40 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 NVDL expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVDL should anchor to the underlying notional of $119.27 per share and to the trader's directional view on NVDL etf.
NVDL straddle setup
The NVDL 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 NVDL near $119.27, the first option leg uses a $119.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVDL 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 NVDL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $119.00 | $13.43 |
| Buy 1 | Put | $119.00 | $12.05 |
NVDL straddle risk and reward
- Net Premium / Debit
- -$2,547.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$2,515.07
- Breakeven(s)
- $93.53, $144.48
- 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.
NVDL straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on NVDL. 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% | +$9,351.50 |
| $26.38 | -77.9% | +$6,714.48 |
| $52.75 | -55.8% | +$4,077.47 |
| $79.12 | -33.7% | +$1,440.45 |
| $105.49 | -11.6% | -$1,196.56 |
| $131.86 | +10.6% | -$1,261.42 |
| $158.23 | +32.7% | +$1,375.59 |
| $184.60 | +54.8% | +$4,012.61 |
| $210.97 | +76.9% | +$6,649.62 |
| $237.34 | +99.0% | +$9,286.64 |
When traders use straddle on NVDL
Straddles on NVDL are pure-volatility plays that profit from large moves in either direction; traders typically buy NVDL straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
NVDL thesis for this straddle
The market-implied 1-standard-deviation range for NVDL extends from approximately $86.87 on the downside to $151.67 on the upside. A NVDL 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 NVDL IV rank near 72.22% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on NVDL at 94.74%. As a Financial Services name, NVDL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVDL-specific events.
NVDL 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. NVDL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVDL alongside the broader basket even when NVDL-specific fundamentals are unchanged. Always rebuild the position from current NVDL chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on NVDL?
- A straddle on NVDL is the straddle strategy applied to NVDL (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 NVDL etf trading near $119.27, the strikes shown on this page are snapped to the nearest listed NVDL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVDL 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 NVDL straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 94.74%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,515.07 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVDL straddle?
- The breakeven for the NVDL straddle priced on this page is roughly $93.53 and $144.48 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 NVDL market-implied 1-standard-deviation expected move is approximately 27.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on NVDL?
- Straddles on NVDL are pure-volatility plays that profit from large moves in either direction; traders typically buy NVDL 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 NVDL implied volatility affect this straddle?
- NVDL ATM IV is at 94.74% with IV rank near 72.22%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.