TMAT Strangle Strategy
TMAT (Main Thematic Innovation ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
TMAT is actively managed to diversify equity exposure across global market themes. The portfolio selection process combines both quantitative and qualitative criteria, aiming to surface companies offering disruptive technologies, with perceived significant market opportunity, and catalysts for long-term adoption. Allocations target economic growth forecasts and other macro-economic factors, identifying 50-100 equity positions that fit the selected themes. Holdings may include individual stocks or theme-based ETFs, which may include non-traditional asset classes. Theme and sector exposures are optimized, setting and revisiting price targets and growth forecasts. However, the fund may invest heavily in certain sectors and allows up to 15 percent of the assets to be invested in bitcoin ETFs.
TMAT (Main Thematic Innovation ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $202.7M, a beta of 1.84 versus the broader market, a 52-week range of 22.26-31.105, average daily share volume of 19K, a public-listing history dating back to 2021, approximately 165 full-time employees. These structural characteristics shape how TMAT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.84 indicates TMAT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TMAT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on TMAT?
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 TMAT snapshot
As of June 30, 2026, spot at $31.42, ATM IV 25.00%, IV rank 2.46%, expected move 7.17%. The strangle on TMAT 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 17-day expiry.
Why this strangle structure on TMAT specifically: TMAT IV at 25.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a TMAT strangle, with a market-implied 1-standard-deviation move of approximately 7.17% (roughly $2.25 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMAT should anchor to the underlying notional of $31.42 per share and to the trader's directional view on TMAT etf.
TMAT strangle setup
The TMAT 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 TMAT near $31.42, the first option leg uses a $32.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMAT chain at a 17-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 TMAT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $32.99 | N/A |
| Buy 1 | Put | $29.85 | N/A |
TMAT 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.
TMAT strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on TMAT. 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 TMAT
Strangles on TMAT 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 TMAT chain.
TMAT thesis for this strangle
The market-implied 1-standard-deviation range for TMAT extends from approximately $29.17 on the downside to $33.67 on the upside. A TMAT 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 TMAT IV rank near 2.46% 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 TMAT at 25.00%. As a Financial Services name, TMAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMAT-specific events.
TMAT 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. TMAT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMAT alongside the broader basket even when TMAT-specific fundamentals are unchanged. Always rebuild the position from current TMAT chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on TMAT?
- A strangle on TMAT is the strangle strategy applied to TMAT (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 TMAT etf trading near $31.42, the strikes shown on this page are snapped to the nearest listed TMAT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMAT 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 TMAT strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 25.00%), 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 TMAT strangle?
- The breakeven for the TMAT 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 TMAT market-implied 1-standard-deviation expected move is approximately 7.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on TMAT?
- Strangles on TMAT 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 TMAT chain.
- How does current TMAT implied volatility affect this strangle?
- TMAT ATM IV is at 25.00% with IV rank near 2.46%, 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.