TSLZ Bear Put Spread Strategy
TSLZ (T-REX 2X Inverse Tesla Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund, under normal circumstances, invests in swap agreements that provide 200% inverse (opposite) daily exposure to TSLA equal to at least 80% of the fund’s net assets. The fund will enter into one or more swap agreements with major global financial institutions whereby the fund and the global financial institution will agree to exchange the return earned on an investment by the fund in TSLA that is equal, on a daily basis, to -200% of the value of the fund’s net assets. The fund is non-diversified.
TSLZ (T-REX 2X Inverse Tesla Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $68.8M, a beta of -1.99 versus the broader market, a 52-week range of 9.735-45.8, average daily share volume of 6.3M, a public-listing history dating back to 2023. These structural characteristics shape how TSLZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.99 indicates TSLZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TSLZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bear put spread on TSLZ?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current TSLZ snapshot
As of May 15, 2026, spot at $11.36, ATM IV 94.00%, IV rank 12.46%, expected move 26.95%. The bear put spread on TSLZ 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 bear put spread structure on TSLZ specifically: TSLZ IV at 94.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a TSLZ bear put spread, with a market-implied 1-standard-deviation move of approximately 26.95% (roughly $3.06 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 TSLZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLZ should anchor to the underlying notional of $11.36 per share and to the trader's directional view on TSLZ etf.
TSLZ bear put spread setup
The TSLZ bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TSLZ near $11.36, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSLZ 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 TSLZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $11.00 | $1.20 |
| Sell 1 | Put | $11.00 | $1.20 |
TSLZ bear put spread risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
TSLZ bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on TSLZ. 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% | $0.00 |
| $2.52 | -77.8% | $0.00 |
| $5.03 | -55.7% | $0.00 |
| $7.54 | -33.6% | $0.00 |
| $10.05 | -11.5% | $0.00 |
| $12.56 | +10.6% | $0.00 |
| $15.07 | +32.7% | $0.00 |
| $17.58 | +54.8% | $0.00 |
| $20.10 | +76.9% | $0.00 |
| $22.61 | +99.0% | $0.00 |
When traders use bear put spread on TSLZ
Bear put spreads on TSLZ reduce the cost of a bearish TSLZ etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
TSLZ thesis for this bear put spread
The market-implied 1-standard-deviation range for TSLZ extends from approximately $8.30 on the downside to $14.42 on the upside. A TSLZ bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TSLZ, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TSLZ IV rank near 12.46% 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 TSLZ at 94.00%. As a Financial Services name, TSLZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSLZ-specific events.
TSLZ bear put spread positions are structurally moderately bearish; 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. TSLZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSLZ alongside the broader basket even when TSLZ-specific fundamentals are unchanged. Long-premium structures like a bear put spread on TSLZ are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current TSLZ chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on TSLZ?
- A bear put spread on TSLZ is the bear put spread strategy applied to TSLZ (etf). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With TSLZ etf trading near $11.36, the strikes shown on this page are snapped to the nearest listed TSLZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSLZ bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the TSLZ bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 94.00%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLZ bear put spread?
- The breakeven for the TSLZ bear put spread priced on this page is no defined breakeven on the modeled curve 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 TSLZ market-implied 1-standard-deviation expected move is approximately 26.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on TSLZ?
- Bear put spreads on TSLZ reduce the cost of a bearish TSLZ etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current TSLZ implied volatility affect this bear put spread?
- TSLZ ATM IV is at 94.00% with IV rank near 12.46%, 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.