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 seek daily investment results, before fees and expenses, of 200% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Tesla, Inc. (NASDAQ: TSLA).
TSLS (Direxion Daily TSLA Bear 1X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $74.2M, a beta of -1.38 versus the broader market, a 52-week range of 48.71-918, average daily share volume of 1.0M, 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 -1.38 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 May 15, 2026, spot at $52.08, ATM IV 45.00%, IV rank 6.17%, expected move 12.90%. 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 34-day expiry.
Why this collar structure on TSLS specifically: IV regime affects collar pricing on both sides; compressed TSLS IV at 45.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.90% (roughly $6.72 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 TSLS expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLS should anchor to the underlying notional of $52.08 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 $52.08, 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 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 TSLS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $52.08 | long |
| Sell 1 | Call | $55.00 | $1.63 |
| Buy 1 | Put | $50.00 | $2.00 |
TSLS collar risk and reward
- Net Premium / Debit
- -$5,245.50
- Max Profit (per contract)
- $254.50
- Max Loss (per contract)
- -$245.50
- Breakeven(s)
- $52.46
- Risk / Reward Ratio
- 1.037
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% | -$245.50 |
| $11.52 | -77.9% | -$245.50 |
| $23.04 | -55.8% | -$245.50 |
| $34.55 | -33.7% | -$245.50 |
| $46.07 | -11.5% | -$245.50 |
| $57.58 | +10.6% | +$254.50 |
| $69.09 | +32.7% | +$254.50 |
| $80.61 | +54.8% | +$254.50 |
| $92.12 | +76.9% | +$254.50 |
| $103.64 | +99.0% | +$254.50 |
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 $45.36 on the downside to $58.80 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 6.17% 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 45.00%. 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 $52.08, 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 45.00%), the computed maximum profit is $254.50 per contract and the computed maximum loss is -$245.50 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 $52.46 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 12.90%; 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 45.00% with IV rank near 6.17%, 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.