TSLS Iron Condor 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 iron condor on TSLS?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
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 iron condor 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 iron condor structure on TSLS specifically: TSLS IV at 45.00% is on the cheap side of its 1-year range, which means a premium-selling TSLS iron condor collects less credit per unit of strike-width risk, 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 iron condor setup
The TSLS iron condor 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) |
|---|---|---|---|
| Sell 1 | Call | $55.00 | $1.63 |
| Buy 1 | Call | $57.00 | $1.05 |
| Sell 1 | Put | $50.00 | $2.00 |
| Buy 1 | Put | $45.00 | $0.72 |
TSLS iron condor risk and reward
- Net Premium / Debit
- +$185.50
- Max Profit (per contract)
- $185.50
- Max Loss (per contract)
- -$314.50
- Breakeven(s)
- $48.15, $56.89
- Risk / Reward Ratio
- 0.590
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
TSLS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor 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% | -$314.50 |
| $11.52 | -77.9% | -$314.50 |
| $23.04 | -55.8% | -$314.50 |
| $34.55 | -33.7% | -$314.50 |
| $46.07 | -11.5% | -$207.87 |
| $57.58 | +10.6% | -$14.50 |
| $69.09 | +32.7% | -$14.50 |
| $80.61 | +54.8% | -$14.50 |
| $92.12 | +76.9% | -$14.50 |
| $103.64 | +99.0% | -$14.50 |
When traders use iron condor on TSLS
Iron condors on TSLS are a delta-neutral premium-collection structure that profits if TSLS etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
TSLS thesis for this iron condor
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 iron condor is a delta-neutral premium-collection structure that pays off when TSLS stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. 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 iron condor positions are structurally neutral / range-bound; 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. Short-premium structures like a iron condor on TSLS carry tail risk when realized volatility exceeds the implied move; review historical TSLS earnings reactions and macro stress periods before sizing. Always rebuild the position from current TSLS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on TSLS?
- A iron condor on TSLS is the iron condor strategy applied to TSLS (etf). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. 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 iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the TSLS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 45.00%), the computed maximum profit is $185.50 per contract and the computed maximum loss is -$314.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLS iron condor?
- The breakeven for the TSLS iron condor priced on this page is roughly $48.15 and $56.89 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 iron condor on TSLS?
- Iron condors on TSLS are a delta-neutral premium-collection structure that profits if TSLS etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current TSLS implied volatility affect this iron condor?
- 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.