ONDL Strangle Strategy
ONDL (Daily Target 2X Long ONDS ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
This fund aims to generate daily returns, before fees and expenses, that are double (200%) the daily percentage change observed in the share price of Ondas Holdings Inc. (Nasdaq: ONDS). It is critical to understand that this investment objective applies strictly to a single trading day and is not designed to achieve similar results over longer periods.
ONDL (Daily Target 2X Long ONDS ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $497,440, a beta of 4.89 versus the broader market, a 52-week range of 4.7-59.29, average daily share volume of 1.6M, a public-listing history dating back to 2025. These structural characteristics shape how ONDL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.89 indicates ONDL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a strangle on ONDL?
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.
ONDL snapshot
As of September 29, 2026, spot at $5.50, ATM IV 189.40%, expected move 54.30%. The strangle on ONDL below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.
Why this strangle structure on ONDL specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ONDL is inferred from ATM IV at 189.40% alone, with a market-implied 1-standard-deviation move of approximately 54.30% (roughly $2.99 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ONDL expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONDL should anchor to the underlying notional of $5.50 per share and to the trader's directional view on ONDL etf.
ONDL strangle setup
The ONDL strangle below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ONDL at $5.50 on that close, the first option leg uses a $6.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONDL chain at a 52-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 ONDL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.00 | $1.23 |
| Buy 1 | Put | $5.00 | $1.13 |
ONDL strangle risk and reward
- Net Premium / Debit
- -$235.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$235.00
- Breakeven(s)
- $2.65, $8.35
- Risk / Reward Ratio
- Unbounded
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.
ONDL strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on ONDL. 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 | -99.8% | +$264.00 |
| $1.22 | -77.7% | +$142.50 |
| $2.44 | -55.6% | +$21.01 |
| $3.65 | -33.5% | -$100.49 |
| $4.87 | -11.5% | -$221.99 |
| $6.08 | +10.6% | -$226.51 |
| $7.30 | +32.7% | -$105.02 |
| $8.51 | +54.8% | +$16.48 |
| $9.73 | +76.9% | +$137.98 |
| $10.94 | +99.0% | +$259.48 |
When traders use strangle on ONDL
Strangles on ONDL 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 ONDL chain.
ONDL thesis for this strangle
The market-implied 1-standard-deviation range for ONDL extends from approximately $2.51 on the downside to $8.49 on the upside. A ONDL 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. As a Financial Services name, ONDL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONDL-specific events.
ONDL 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. ONDL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ONDL alongside the broader basket even when ONDL-specific fundamentals are unchanged. Always rebuild the position from current ONDL chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on ONDL?
- A strangle on ONDL is the strangle strategy applied to ONDL (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 ONDL etf at $5.50 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed ONDL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ONDL 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 ONDL strangle priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 189.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$235.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ONDL strangle?
- The breakeven for the ONDL strangle priced on this page is roughly $2.65 and $8.35 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ONDL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 54.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on ONDL?
- Strangles on ONDL 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 ONDL chain.
- How does current ONDL implied volatility affect this strangle?
- Current ONDL ATM IV is 189.40%; IV rank context is unavailable in the current snapshot.