TSLZ Straddle 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 straddle on TSLZ?
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 TSLZ snapshot
As of May 15, 2026, spot at $11.36, ATM IV 94.00%, IV rank 12.46%, expected move 26.95%. The straddle 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 straddle 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 straddle, 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 straddle setup
The TSLZ 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 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 | Call | $11.00 | $1.45 |
| Buy 1 | Put | $11.00 | $1.20 |
TSLZ straddle risk and reward
- Net Premium / Debit
- -$265.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$261.56
- Breakeven(s)
- $8.35, $13.65
- 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.
TSLZ straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle 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% | +$834.00 |
| $2.52 | -77.8% | +$582.93 |
| $5.03 | -55.7% | +$331.87 |
| $7.54 | -33.6% | +$80.80 |
| $10.05 | -11.5% | -$170.26 |
| $12.56 | +10.6% | -$108.67 |
| $15.07 | +32.7% | +$142.39 |
| $17.58 | +54.8% | +$393.46 |
| $20.10 | +76.9% | +$644.52 |
| $22.61 | +99.0% | +$895.59 |
When traders use straddle on TSLZ
Straddles on TSLZ are pure-volatility plays that profit from large moves in either direction; traders typically buy TSLZ straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
TSLZ thesis for this straddle
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 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 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 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. 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. Always rebuild the position from current TSLZ chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on TSLZ?
- A straddle on TSLZ is the straddle strategy applied to TSLZ (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 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 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 TSLZ straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 94.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$261.56 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLZ straddle?
- The breakeven for the TSLZ straddle priced on this page is roughly $8.35 and $13.65 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 straddle on TSLZ?
- Straddles on TSLZ are pure-volatility plays that profit from large moves in either direction; traders typically buy TSLZ 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 TSLZ implied volatility affect this straddle?
- 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.