NVDQ P&L Curve
T-REX 2X Inverse NVIDIA Daily Target ETF (NVDQ) operates in the Financial Services sector, specifically the Asset Management industry, with a market capitalization near $18.4M, listed on CBOE, carrying a beta of -2.93 to the broader market. The fund, under normal circumstances, invests in swap agreements that provide 200% inverse (opposite) daily exposure to NVDA equal to at least 80% of the fund’s net assets. public since 2023-10-19.
A profit/loss curve charts the theoretical gain or loss of an options position across a range of underlying prices. It helps traders visualize risk, identify breakeven points, and compare strategies before committing capital.
- Exchange
- CBOE
- Sector
- Financial Services
- Industry
- Asset Management
- Market Cap
- $18.4M
- IPO Date
- 2023-10-19
- Beta
- -2.93
At the current $9.82 spot price with 98.5% ATM implied volatility and 34 days to the front expiration, an at-the-money long straddle carries an approximate combined premium near $2.36, producing breakevens at roughly $7.46 and $12.18. Market-implied 1-standard-deviation range extends from $7.05 to $12.59, which sets the relevant P&L evaluation window for most near-term strategies. Payoff diagrams should be rebuilt from the live options chain; the preceding values are illustrative and assume a single at-the-money straddle for reference.
Frequently asked NVDQ pl curve questions
- What does a NVDQ ATM straddle cost today?
- Using current NVDQ pricing (98.5% ATM IV, 34-day front expiration, $9.82 spot), an at-the-money long straddle (long call + long put at the same strike) carries an approximate combined premium near $2.36 per spread. Breakevens land at roughly $12.18 on the upside and $7.46 on the downside. The estimate uses the Brenner-Subrahmanyam approximation for at-the-money options under Black-Scholes.
- How do I read an options P&L curve?
- An options P&L curve plots theoretical position value at expiration (or at any chosen evaluation date) against the underlying price. The X-axis is the underlying price scenario, the Y-axis is position dollar P&L. The shape of the curve tells you the strategy's directional sensitivity, breakeven points, maximum profit and loss levels, and where time decay or volatility shifts will be most impactful. Multi-leg structures combine the curves of the individual legs to produce composite payoff diagrams.
- What's the difference between a P&L curve and a payoff diagram?
- Strictly: a payoff diagram shows option value at expiration (no time premium left), while a P&L curve typically shows position value at any evaluation date (with remaining time premium). The expiration payoff diagram has kinks at the strikes; the early P&L curve is smooth. For directional-vega trades, the early P&L curve also responds to IV shifts that the expiration payoff diagram does not capture - which is why options traders often look at both views.
- Why are illustrative NVDQ P&L numbers approximate?
- The numbers above use Black-Scholes assumptions (lognormal returns, constant volatility, no early exercise, no dividends). Real-world option prices reflect skew, term structure, jump risk, and (for US-style options) early exercise premium. Use the live options chain for actual quoted bid/ask prices when sizing trades; the values here illustrate magnitude only.