TSLT Straddle Strategy
TSLT (T-REX 2X Long Tesla Daily Target ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
This ETF aims to provide daily returns that are double the performance of Tesla (TSLA) stock. It primarily achieves this magnified exposure by allocating at least 80% of its net assets, along with any borrowed capital, to swap agreements. These financial contracts are established with prominent global financial institutions and are designed to exchange returns, effectively targeting a daily exposure to TSLA equivalent to 200% of the fund's net asset value. The fund operates as a non-diversified portfolio.
TSLT (T-REX 2X Long Tesla Daily Target ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $172.2M, a beta of 3.35 versus the broader market, a 52-week range of 13.09-33.03, average daily share volume of 3.2M, a public-listing history dating back to 2023. These structural characteristics shape how TSLT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.35 indicates TSLT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a straddle on TSLT?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current TSLT snapshot
As of June 29, 2026, spot at $19.13, ATM IV 93.30%, IV rank 34.59%, expected move 26.75%. The straddle on TSLT 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 straddle structure on TSLT specifically: TSLT IV at 93.30% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 26.75% (roughly $5.12 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 TSLT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLT should anchor to the underlying notional of $19.13 per share and to the trader's directional view on TSLT etf.
TSLT straddle setup
The TSLT straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TSLT near $19.13, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSLT 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 TSLT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $19.00 | $1.68 |
| Buy 1 | Put | $19.00 | $1.45 |
TSLT straddle risk and reward
- Net Premium / Debit
- -$312.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$308.61
- Breakeven(s)
- $15.88, $22.13
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
TSLT straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on TSLT. 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% | +$1,586.50 |
| $4.24 | -77.8% | +$1,163.64 |
| $8.47 | -55.7% | +$740.77 |
| $12.70 | -33.6% | +$317.91 |
| $16.92 | -11.5% | -$104.96 |
| $21.15 | +10.6% | -$97.18 |
| $25.38 | +32.7% | +$325.69 |
| $29.61 | +54.8% | +$748.55 |
| $33.84 | +76.9% | +$1,171.41 |
| $38.07 | +99.0% | +$1,594.28 |
When traders use straddle on TSLT
Straddles on TSLT are pure-volatility plays that profit from large moves in either direction; traders typically buy TSLT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
TSLT thesis for this straddle
The market-implied 1-standard-deviation range for TSLT extends from approximately $14.01 on the downside to $24.25 on the upside. A TSLT long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current TSLT IV rank near 34.59% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on TSLT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TSLT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSLT-specific events.
TSLT straddle positions are structurally neutral / high-volatility (long premium); 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. TSLT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSLT alongside the broader basket even when TSLT-specific fundamentals are unchanged. Always rebuild the position from current TSLT chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on TSLT?
- A straddle on TSLT is the straddle strategy applied to TSLT (etf). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With TSLT etf trading near $19.13, the strikes shown on this page are snapped to the nearest listed TSLT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSLT straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the TSLT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 93.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$308.61 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLT straddle?
- The breakeven for the TSLT straddle priced on this page is roughly $15.88 and $22.13 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 TSLT market-implied 1-standard-deviation expected move is approximately 26.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on TSLT?
- Straddles on TSLT are pure-volatility plays that profit from large moves in either direction; traders typically buy TSLT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current TSLT implied volatility affect this straddle?
- TSLT ATM IV is at 93.30% with IV rank near 34.59%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.