CGBD Straddle Strategy
CGBD (Carlyle Secured Lending, Inc.), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
TCG BDC, Inc. is business development company specializing in first lien debt, senior secured loans, second lien senior secured loan unsecured debt, mezzanine debt and investments in equities. It specializes in directly investing. It specializes in middle market. It targets healthcare and pharmaceutical, aerospace and defense, high tech industries, business services, software, beverage food and tobacco, hotel gamming and leisure, banking finance insurance and in real estate sector. The fund seeks to invest across United States of America, Luxembourg, Cayman Islands, Cyprus, and United Kingdom. It invests in companies with EBITDA between $25 million and $100 million.
CGBD (Carlyle Secured Lending, Inc.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $772.8M, a trailing P/E of 15.25, a beta of 0.72 versus the broader market, a 52-week range of 10.61-14.49, average daily share volume of 825K, a public-listing history dating back to 2017, approximately 2K full-time employees. These structural characteristics shape how CGBD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places CGBD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CGBD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on CGBD?
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 CGBD snapshot
As of May 15, 2026, spot at $11.22, ATM IV 18.50%, IV rank 4.30%, expected move 5.30%. The straddle on CGBD 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 CGBD specifically: CGBD IV at 18.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a CGBD straddle, with a market-implied 1-standard-deviation move of approximately 5.30% (roughly $0.60 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 CGBD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGBD should anchor to the underlying notional of $11.22 per share and to the trader's directional view on CGBD stock.
CGBD straddle setup
The CGBD 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 CGBD near $11.22, the first option leg uses a $11.22 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGBD 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 CGBD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $11.22 | N/A |
| Buy 1 | Put | $11.22 | N/A |
CGBD straddle 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 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.
CGBD straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on CGBD. 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 straddle on CGBD
Straddles on CGBD are pure-volatility plays that profit from large moves in either direction; traders typically buy CGBD straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CGBD thesis for this straddle
The market-implied 1-standard-deviation range for CGBD extends from approximately $10.62 on the downside to $11.82 on the upside. A CGBD 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 CGBD IV rank near 4.30% 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 CGBD at 18.50%. As a Financial Services name, CGBD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGBD-specific events.
CGBD 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. CGBD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGBD alongside the broader basket even when CGBD-specific fundamentals are unchanged. Always rebuild the position from current CGBD chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CGBD?
- A straddle on CGBD is the straddle strategy applied to CGBD (stock). 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 CGBD stock trading near $11.22, the strikes shown on this page are snapped to the nearest listed CGBD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CGBD 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 CGBD straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 18.50%), 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 CGBD straddle?
- The breakeven for the CGBD straddle 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 CGBD market-implied 1-standard-deviation expected move is approximately 5.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on CGBD?
- Straddles on CGBD are pure-volatility plays that profit from large moves in either direction; traders typically buy CGBD 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 CGBD implied volatility affect this straddle?
- CGBD ATM IV is at 18.50% with IV rank near 4.30%, 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.