ODDS Strangle Strategy
ODDS (Pacer BlueStar Digital Entertainment ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
A rules-based exchange traded fund (ETF) that aims to offer investors exposure to globally listed companies and depositary receipts that generate the majority of their revenue from online gambling, video game development or eSports.
ODDS (Pacer BlueStar Digital Entertainment ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.0M, a beta of 1.08 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. These structural characteristics shape how ODDS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.08 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 strangle on ODDS?
A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.
Current ODDS snapshot
As of May 15, 2026, spot at $23.93, ATM IV 36.40%, IV rank 13.80%, expected move 10.44%. The strangle 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 34-day expiry.
Why this strangle structure on ODDS specifically: ODDS IV at 36.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a ODDS strangle, with a market-implied 1-standard-deviation move of approximately 10.44% (roughly $2.50 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 ODDS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ODDS should anchor to the underlying notional of $23.93 per share and to the trader's directional view on ODDS etf.
ODDS strangle setup
The ODDS strangle 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 $23.93, the first option leg uses a $25.13 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 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 ODDS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $25.13 | N/A |
| Buy 1 | Put | $22.73 | N/A |
ODDS strangle 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 put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.
ODDS strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle 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 strangle on ODDS
Strangles on ODDS are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the ODDS chain.
ODDS thesis for this strangle
The market-implied 1-standard-deviation range for ODDS extends from approximately $21.43 on the downside to $26.43 on the upside. A ODDS long strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. Current ODDS IV rank near 13.80% 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 36.40%. 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 strangle positions are structurally neutral / high-volatility (long premium, OTM); 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 strangle on ODDS?
- A strangle on ODDS is the strangle strategy applied to ODDS (etf). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. With ODDS etf trading near $23.93, 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 strangle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the ODDS strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.40%), 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 strangle?
- The breakeven for the ODDS strangle 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 10.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on ODDS?
- Strangles on ODDS are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the ODDS chain.
- How does current ODDS implied volatility affect this strangle?
- ODDS ATM IV is at 36.40% with IV rank near 13.80%, 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.