WDNA Strangle Strategy
WDNA (WisdomTree BioRevolution Fund), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of the securities in the index whose risk, return and other characteristics resemble the risk, return and other characteristics of the Index as a whole. The index is designed to provide exposure to equity securities of exchange listed companies globally that will be significantly transformed by advancements in genetics and biotechnology. The fund is non-diversified.
WDNA (WisdomTree BioRevolution Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.3M, a beta of 1.30 versus the broader market, a 52-week range of 11.986-18.878, average daily share volume of 1K, a public-listing history dating back to 2021. These structural characteristics shape how WDNA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places WDNA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WDNA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on WDNA?
A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.
Current WDNA snapshot
As of May 15, 2026, spot at $13.68, ATM IV 169.90%, IV rank 42.75%, expected move 48.71%. The strangle on WDNA 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 strangle structure on WDNA specifically: WDNA IV at 169.90% 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 48.71% (roughly $6.66 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 WDNA expiries trade a higher absolute premium for lower per-day decay. Position sizing on WDNA should anchor to the underlying notional of $13.68 per share and to the trader's directional view on WDNA etf.
WDNA strangle setup
The WDNA strangle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WDNA near $13.68, the first option leg uses a $14.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WDNA 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 WDNA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.36 | N/A |
| Buy 1 | Put | $13.00 | N/A |
WDNA strangle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.
WDNA strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on WDNA. 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.
When traders use strangle on WDNA
Strangles on WDNA are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the WDNA chain.
WDNA thesis for this strangle
The market-implied 1-standard-deviation range for WDNA extends from approximately $7.02 on the downside to $20.34 on the upside. A WDNA long strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. Current WDNA IV rank near 42.75% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on WDNA should anchor more to the directional view and the expected-move geometry. As a Financial Services name, WDNA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WDNA-specific events.
WDNA strangle positions are structurally neutral / high-volatility (long premium, OTM); 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. WDNA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WDNA alongside the broader basket even when WDNA-specific fundamentals are unchanged. Always rebuild the position from current WDNA chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on WDNA?
- A strangle on WDNA is the strangle strategy applied to WDNA (etf). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. With WDNA etf trading near $13.68, the strikes shown on this page are snapped to the nearest listed WDNA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WDNA strangle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the WDNA strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 169.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WDNA strangle?
- The breakeven for the WDNA strangle 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 WDNA market-implied 1-standard-deviation expected move is approximately 48.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on WDNA?
- Strangles on WDNA are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the WDNA chain.
- How does current WDNA implied volatility affect this strangle?
- WDNA ATM IV is at 169.90% with IV rank near 42.75%, 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.