How are NVDS 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 NVDS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 56.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$236.28 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NVDS straddle?

The breakeven for the NVDS straddle priced on this page is roughly $21.58 and $26.43 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 NVDS market-implied 1-standard-deviation expected move is approximately 16.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NVDS implied volatility affect this straddle?

NVDS ATM IV is at 56.30% with IV rank near 31.61%, 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.

NVDS Straddle Strategy

NVDS (Tradr 1.5X Short NVDA Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

This actively managed Exchange Traded Fund (ETF) aims to deliver, on a daily basis and prior to any charges or expenses, a return that is negative 125% of NVIDIA (NVDA) stock's daily performance. Its primary method for achieving this objective is through entering into one or more daily swap contracts linked to NVDA. It is paramount to note that this performance target is strictly for a single trading day and is not intended to apply to any periods exceeding one day. In typical market environments, the fund's manager commits a minimum of 80% of its assets to financial instruments engineered to provide this inverse 1.25x leveraged exposure to NVDA's daily fluctuations. The fund operates with a concentrated, non-diversified investment approach.

NVDS (Tradr 1.5X Short NVDA Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $28.9M, a beta of -2.22 versus the broader market, a 52-week range of 18.291-46.02, average daily share volume of 395K, a public-listing history dating back to 2022. These structural characteristics shape how NVDS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -2.22 indicates NVDS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NVDS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on NVDS?

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 NVDS snapshot

As of June 29, 2026, spot at $23.70, ATM IV 56.30%, IV rank 31.61%, expected move 16.14%. The straddle on NVDS 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 18-day expiry.

Why this straddle structure on NVDS specifically: NVDS IV at 56.30% 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 16.14% (roughly $3.83 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NVDS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVDS should anchor to the underlying notional of $23.70 per share and to the trader's directional view on NVDS etf.

NVDS straddle setup

The NVDS 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 NVDS near $23.70, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVDS chain at a 18-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 NVDS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$24.00	$1.20
Buy 1	Put	$24.00	$1.23

NVDS straddle risk and reward

Net Premium / Debit: -$242.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$236.28
Breakeven(s): $21.58, $26.43
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.

NVDS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on NVDS. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$2,156.50
$5.25	-77.9%	+$1,632.59
$10.49	-55.7%	+$1,108.68
$15.73	-33.6%	+$584.77
$20.97	-11.5%	+$60.86
$26.21	+10.6%	-$21.95
$31.44	+32.7%	+$501.96
$36.68	+54.8%	+$1,025.87
$41.92	+76.9%	+$1,549.78
$47.16	+99.0%	+$2,073.69

When traders use straddle on NVDS

Straddles on NVDS are pure-volatility plays that profit from large moves in either direction; traders typically buy NVDS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.

NVDS thesis for this straddle

The market-implied 1-standard-deviation range for NVDS extends from approximately $19.87 on the downside to $27.53 on the upside. A NVDS 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 NVDS IV rank near 31.61% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on NVDS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, NVDS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVDS-specific events.

NVDS 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. NVDS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVDS alongside the broader basket even when NVDS-specific fundamentals are unchanged. Always rebuild the position from current NVDS chain quotes before placing a trade.

Frequently asked questions

What is a straddle on NVDS?: A straddle on NVDS is the straddle strategy applied to NVDS (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 NVDS etf trading near $23.70, the strikes shown on this page are snapped to the nearest listed NVDS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NVDS 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 NVDS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 56.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$236.28 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NVDS straddle?: The breakeven for the NVDS straddle priced on this page is roughly $21.58 and $26.43 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 NVDS market-implied 1-standard-deviation expected move is approximately 16.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on NVDS?: Straddles on NVDS are pure-volatility plays that profit from large moves in either direction; traders typically buy NVDS 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 NVDS implied volatility affect this straddle?: NVDS ATM IV is at 56.30% with IV rank near 31.61%, 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.