TDV Straddle Strategy
TDV (ProShares - S&P Technology Dividend Aristocrats ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
This ProShares fund is designed to mirror an underlying index, which is meticulously developed and overseen by S&P Dow Jones Indices LLC. The index primarily comprises companies from the U.S. technology sector, with a focused selection of technology-oriented businesses also drawn from the communication services and consumer discretionary sectors. Typically, the fund commits a minimum of 80% of its total capital to the securities that make up this index. Investors should be aware that it operates as a non-diversified fund.
TDV (ProShares - S&P Technology Dividend Aristocrats ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $298.4M, a beta of 1.12 versus the broader market, a 52-week range of 81.52-106.7, average daily share volume of 7K, a public-listing history dating back to 2019. These structural characteristics shape how TDV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places TDV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TDV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on TDV?
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.
TDV snapshot
As of August 14, 2026, spot at $103.39, ATM IV 11.80%, IV rank 6.23%, expected move 3.38%. The straddle on TDV below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this straddle structure on TDV specifically: TDV IV at 11.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a TDV straddle, with a market-implied 1-standard-deviation move of approximately 3.38% (roughly $3.50 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TDV expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDV should anchor to the underlying notional of $103.39 per share and to the trader's directional view on TDV etf.
TDV straddle setup
The TDV straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TDV at $103.39 on that close, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDV chain at a 35-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 TDV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $105.00 | $2.45 |
| Buy 1 | Put | $105.00 | $3.60 |
TDV straddle risk and reward
- Net Premium / Debit
- -$605.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$600.36
- Breakeven(s)
- $98.95, $111.05
- 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.
TDV straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on TDV. 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 | -100.0% | +$9,894.00 |
| $22.87 | -77.9% | +$7,608.10 |
| $45.73 | -55.8% | +$5,322.20 |
| $68.59 | -33.7% | +$3,036.30 |
| $91.45 | -11.6% | +$750.40 |
| $114.30 | +10.6% | +$325.50 |
| $137.16 | +32.7% | +$2,611.40 |
| $160.02 | +54.8% | +$4,897.30 |
| $182.88 | +76.9% | +$7,183.20 |
| $205.74 | +99.0% | +$9,469.10 |
When traders use straddle on TDV
Straddles on TDV are pure-volatility plays that profit from large moves in either direction; traders typically buy TDV straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
TDV thesis for this straddle
The market-implied 1-standard-deviation range for TDV extends from approximately $99.89 on the downside to $106.89 on the upside. A TDV 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 TDV IV rank near 6.23% 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 TDV at 11.80%. As a Financial Services name, TDV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDV-specific events.
TDV 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. TDV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TDV alongside the broader basket even when TDV-specific fundamentals are unchanged. Always rebuild the position from current TDV chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on TDV?
- A straddle on TDV is the straddle strategy applied to TDV (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 TDV etf at $103.39 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TDV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TDV 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 TDV straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 11.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$600.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TDV straddle?
- The breakeven for the TDV straddle priced on this page is roughly $98.95 and $111.05 at expiration, derived from the August 14, 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 TDV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on TDV?
- Straddles on TDV are pure-volatility plays that profit from large moves in either direction; traders typically buy TDV 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 TDV implied volatility affect this straddle?
- TDV ATM IV is at 11.80% with IV rank near 6.23%, 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.