ODDS Straddle Strategy

ODDS (Pacer BlueStar Digital Entertainment ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

ODDS is designed to provide thematic exposure to an index of digital entertainment companies around the world. To be eligible, firms must generate at least half of their revenue from relevant segments, such as online gambling, content streaming, iGaming, and eSports, in addition to meeting several investability requirements including market-cap and liquidity. The fund assigns the constituents into two separate tiers, both holding 50% of the portfolios weighting. The first tier is composed of the companies involved with online gambling and betting, while the second tier comprises those tied to the development, operation, and utilization of video games, streaming services, and eSports events. Each component then is market cap-weighted in its own tier with an 8% capping to ensure diversification. The index is reconstituted and rebalanced quarterly.

ODDS (Pacer BlueStar Digital Entertainment ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.9M, a beta of 1.04 versus the broader market, a 52-week range of 22.61-35.52, average daily share volume of 1K, a public-listing history dating back to 2022, approximately 3K full-time employees. These structural characteristics shape how ODDS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places ODDS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ODDS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on ODDS?

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 ODDS snapshot

As of June 29, 2026, spot at $24.44, ATM IV 42.60%, IV rank 18.58%, expected move 12.21%. The straddle on ODDS 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 ODDS specifically: ODDS IV at 42.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a ODDS straddle, with a market-implied 1-standard-deviation move of approximately 12.21% (roughly $2.98 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 ODDS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ODDS should anchor to the underlying notional of $24.44 per share and to the trader's directional view on ODDS etf.

ODDS straddle setup

The ODDS 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 ODDS near $24.44, the first option leg uses a $24.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ODDS 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 ODDS shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$24.44N/A
Buy 1Put$24.44N/A

ODDS straddle risk and reward

Net Premium / Debit
N/A
Max Profit (per contract)
Unbounded
Max Loss (per contract)
Unbounded
Breakeven(s)
None on modeled curve
Risk / Reward Ratio
N/A

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.

ODDS straddle payoff curve

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

When traders use straddle on ODDS

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

ODDS thesis for this straddle

The market-implied 1-standard-deviation range for ODDS extends from approximately $21.46 on the downside to $27.42 on the upside. A ODDS 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 ODDS IV rank near 18.58% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on ODDS at 42.60%. As a Financial Services name, ODDS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ODDS-specific events.

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

Frequently asked questions

What is a straddle on ODDS?
A straddle on ODDS is the straddle strategy applied to ODDS (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 ODDS etf trading near $24.44, the strikes shown on this page are snapped to the nearest listed ODDS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ODDS 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 ODDS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 42.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ODDS straddle?
The breakeven for the ODDS straddle priced on this page is no defined breakeven on the modeled curve 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 ODDS market-implied 1-standard-deviation expected move is approximately 12.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on ODDS?
Straddles on ODDS are pure-volatility plays that profit from large moves in either direction; traders typically buy ODDS 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 ODDS implied volatility affect this straddle?
ODDS ATM IV is at 42.60% with IV rank near 18.58%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

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