TSDD Collar Strategy
TSDD (GraniteShares 2x Short TSLA Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Fund seeks daily investment results, before fees and expenses, of -2 times (-200%) the daily percentage change of the common stock of Tesla Inc, (NASDAQ: TSLA) There is no guarantee that the Fund will meet its stated objective. The fund should not be expected to provide -2 times the cumulative return of TSLA for periods greater than a day.
TSDD (GraniteShares 2x Short TSLA Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $30.0M, a beta of -2.13 versus the broader market, a 52-week range of 6.57-31.65, average daily share volume of 33.3M, a public-listing history dating back to 2023. These structural characteristics shape how TSDD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.13 indicates TSDD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TSDD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TSDD?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current TSDD snapshot
As of May 15, 2026, spot at $7.50, ATM IV 91.40%, IV rank 16.59%, expected move 26.20%. The collar on TSDD 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 collar structure on TSDD specifically: IV regime affects collar pricing on both sides; compressed TSDD IV at 91.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.20% (roughly $1.97 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 TSDD expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSDD should anchor to the underlying notional of $7.50 per share and to the trader's directional view on TSDD etf.
TSDD collar setup
The TSDD collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TSDD near $7.50, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSDD 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 TSDD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.50 | long |
| Sell 1 | Call | $8.00 | $0.53 |
| Buy 1 | Put | $7.00 | $0.68 |
TSDD collar risk and reward
- Net Premium / Debit
- -$765.00
- Max Profit (per contract)
- $35.00
- Max Loss (per contract)
- -$65.00
- Breakeven(s)
- $7.65
- Risk / Reward Ratio
- 0.538
Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
TSDD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TSDD. 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 | -99.9% | -$65.00 |
| $1.67 | -77.8% | -$65.00 |
| $3.32 | -55.7% | -$65.00 |
| $4.98 | -33.6% | -$65.00 |
| $6.64 | -11.5% | -$65.00 |
| $8.30 | +10.6% | +$35.00 |
| $9.95 | +32.7% | +$35.00 |
| $11.61 | +54.8% | +$35.00 |
| $13.27 | +76.9% | +$35.00 |
| $14.92 | +99.0% | +$35.00 |
When traders use collar on TSDD
Collars on TSDD hedge an existing long TSDD etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
TSDD thesis for this collar
The market-implied 1-standard-deviation range for TSDD extends from approximately $5.53 on the downside to $9.47 on the upside. A TSDD collar hedges an existing long TSDD position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current TSDD IV rank near 16.59% 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 TSDD at 91.40%. As a Financial Services name, TSDD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSDD-specific events.
TSDD collar positions are structurally neutral (protective); 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. TSDD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSDD alongside the broader basket even when TSDD-specific fundamentals are unchanged. Always rebuild the position from current TSDD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TSDD?
- A collar on TSDD is the collar strategy applied to TSDD (etf). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With TSDD etf trading near $7.50, the strikes shown on this page are snapped to the nearest listed TSDD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSDD collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the TSDD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 91.40%), the computed maximum profit is $35.00 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSDD collar?
- The breakeven for the TSDD collar priced on this page is roughly $7.65 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 TSDD market-implied 1-standard-deviation expected move is approximately 26.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TSDD?
- Collars on TSDD hedge an existing long TSDD etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current TSDD implied volatility affect this collar?
- TSDD ATM IV is at 91.40% with IV rank near 16.59%, 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.