TSYY Straddle Strategy
TSYY (GraniteShares YieldBOOST TSLA ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
The Fund's primary aim is to double (200%) the income earned from writing options on Tesla Inc. (TSLA). This is achieved by selling options on leveraged exchange-traded funds (ETFs) that are designed to deliver two times the daily performance of TSLA. A secondary goal is to capture the performance of these underlying leveraged ETFs, though any potential investment gains are capped. Furthermore, the fund has the option to implement downside protection measures, which might affect the overall net income generated.
TSYY (GraniteShares YieldBOOST TSLA ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $78.8M, a beta of 1.50 versus the broader market, a 52-week range of 20.28-82.96, average daily share volume of 104K, a public-listing history dating back to 2024. These structural characteristics shape how TSYY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.50 indicates TSYY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TSYY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on TSYY?
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 TSYY snapshot
As of June 30, 2026, spot at $23.39, ATM IV 54.90%, IV rank 10.82%, expected move 15.74%. The straddle on TSYY 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 234-day expiry.
Why this straddle structure on TSYY specifically: TSYY IV at 54.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a TSYY straddle, with a market-implied 1-standard-deviation move of approximately 15.74% (roughly $3.68 on the underlying). The 234-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TSYY expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSYY should anchor to the underlying notional of $23.39 per share and to the trader's directional view on TSYY etf.
TSYY straddle setup
The TSYY 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 TSYY near $23.39, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSYY chain at a 234-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 TSYY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $23.00 | $2.97 |
| Buy 1 | Put | $23.00 | $5.85 |
TSYY straddle risk and reward
- Net Premium / Debit
- -$882.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$877.75
- Breakeven(s)
- $14.18, $31.82
- 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.
TSYY straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on TSYY. 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% | +$1,417.00 |
| $5.18 | -77.9% | +$899.94 |
| $10.35 | -55.7% | +$382.89 |
| $15.52 | -33.6% | -$134.17 |
| $20.69 | -11.5% | -$651.22 |
| $25.86 | +10.6% | -$595.72 |
| $31.03 | +32.7% | -$78.67 |
| $36.20 | +54.8% | +$438.39 |
| $41.37 | +76.9% | +$955.44 |
| $46.54 | +99.0% | +$1,472.50 |
When traders use straddle on TSYY
Straddles on TSYY are pure-volatility plays that profit from large moves in either direction; traders typically buy TSYY straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
TSYY thesis for this straddle
The market-implied 1-standard-deviation range for TSYY extends from approximately $19.71 on the downside to $27.07 on the upside. A TSYY 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 TSYY IV rank near 10.82% 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 TSYY at 54.90%. As a Financial Services name, TSYY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSYY-specific events.
TSYY 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. TSYY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSYY alongside the broader basket even when TSYY-specific fundamentals are unchanged. Always rebuild the position from current TSYY chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on TSYY?
- A straddle on TSYY is the straddle strategy applied to TSYY (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 TSYY etf trading near $23.39, the strikes shown on this page are snapped to the nearest listed TSYY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSYY 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 TSYY straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 54.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$877.75 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSYY straddle?
- The breakeven for the TSYY straddle priced on this page is roughly $14.18 and $31.82 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 TSYY market-implied 1-standard-deviation expected move is approximately 15.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on TSYY?
- Straddles on TSYY are pure-volatility plays that profit from large moves in either direction; traders typically buy TSYY 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 TSYY implied volatility affect this straddle?
- TSYY ATM IV is at 54.90% with IV rank near 10.82%, 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.