TSLS Collar Strategy
TSLS (Direxion Daily TSLA Bear 1X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
The Direxion Daily TSLA Bull 2X ETF and Direxion Daily TSLA Bear 1X ETF are designed to achieve particular daily returns based on the performance of Tesla, Inc. (NASDAQ: TSLA) common stock. The Bull 2X ETF targets daily investment outcomes that are double (200%) the stock's performance, before deducting fees and expenses. In contrast, the Bear 1X ETF strives for daily results equal to the inverse (or opposite) movement of Tesla's shares, prior to any associated costs.
TSLS (Direxion Daily TSLA Bear 1X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $83.8M, a beta of -1.46 versus the broader market, a 52-week range of 48.71-853, average daily share volume of 710K, a public-listing history dating back to 2022. These structural characteristics shape how TSLS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.46 indicates TSLS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TSLS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TSLS?
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 TSLS snapshot
As of June 29, 2026, spot at $52.13, ATM IV 44.00%, IV rank 5.81%, expected move 12.61%. The collar on TSLS 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 18-day expiry.
Why this collar structure on TSLS specifically: IV regime affects collar pricing on both sides; compressed TSLS IV at 44.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.61% (roughly $6.58 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TSLS expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLS should anchor to the underlying notional of $52.13 per share and to the trader's directional view on TSLS etf.
TSLS collar setup
The TSLS 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 TSLS near $52.13, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSLS chain at a 18-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 TSLS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $52.13 | long |
| Sell 1 | Call | $55.00 | $1.18 |
| Buy 1 | Put | $50.00 | $0.88 |
TSLS collar risk and reward
- Net Premium / Debit
- -$5,183.00
- Max Profit (per contract)
- $317.00
- Max Loss (per contract)
- -$183.00
- Breakeven(s)
- $51.83
- Risk / Reward Ratio
- 1.732
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.
TSLS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TSLS. 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% | -$183.00 |
| $11.54 | -77.9% | -$183.00 |
| $23.06 | -55.8% | -$183.00 |
| $34.59 | -33.7% | -$183.00 |
| $46.11 | -11.5% | -$183.00 |
| $57.64 | +10.6% | +$317.00 |
| $69.16 | +32.7% | +$317.00 |
| $80.69 | +54.8% | +$317.00 |
| $92.21 | +76.9% | +$317.00 |
| $103.74 | +99.0% | +$317.00 |
When traders use collar on TSLS
Collars on TSLS hedge an existing long TSLS 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.
TSLS thesis for this collar
The market-implied 1-standard-deviation range for TSLS extends from approximately $45.55 on the downside to $58.71 on the upside. A TSLS collar hedges an existing long TSLS 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 TSLS IV rank near 5.81% 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 TSLS at 44.00%. As a Financial Services name, TSLS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSLS-specific events.
TSLS 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. TSLS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSLS alongside the broader basket even when TSLS-specific fundamentals are unchanged. Always rebuild the position from current TSLS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TSLS?
- A collar on TSLS is the collar strategy applied to TSLS (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 TSLS etf trading near $52.13, the strikes shown on this page are snapped to the nearest listed TSLS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSLS 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 TSLS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 44.00%), the computed maximum profit is $317.00 per contract and the computed maximum loss is -$183.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLS collar?
- The breakeven for the TSLS collar priced on this page is roughly $51.83 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 TSLS market-implied 1-standard-deviation expected move is approximately 12.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TSLS?
- Collars on TSLS hedge an existing long TSLS 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 TSLS implied volatility affect this collar?
- TSLS ATM IV is at 44.00% with IV rank near 5.81%, 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.