TELA Straddle Strategy
TELA (TELA Bio, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. It provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. The company markets its products through a single direct sales force, principally in the United States. TELA Bio, Inc. was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
TELA (TELA Bio, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $43.0M, a beta of 1.30 versus the broader market, a 52-week range of 0.501-2.2, average daily share volume of 184K, a public-listing history dating back to 2019, approximately 209 full-time employees. These structural characteristics shape how TELA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places TELA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on TELA?
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 TELA snapshot
As of May 15, 2026, spot at $0.90, ATM IV 17.50%, IV rank 0.00%, expected move 5.02%. The straddle on TELA 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 TELA specifically: TELA IV at 17.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a TELA straddle, with a market-implied 1-standard-deviation move of approximately 5.02% (roughly $0.05 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 TELA expiries trade a higher absolute premium for lower per-day decay. Position sizing on TELA should anchor to the underlying notional of $0.90 per share and to the trader's directional view on TELA stock.
TELA straddle setup
The TELA 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 TELA near $0.90, the first option leg uses a $0.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TELA 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 TELA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.90 | N/A |
| Buy 1 | Put | $0.90 | N/A |
TELA 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.
TELA straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on TELA. 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 TELA
Straddles on TELA are pure-volatility plays that profit from large moves in either direction; traders typically buy TELA straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
TELA thesis for this straddle
The market-implied 1-standard-deviation range for TELA extends from approximately $0.85 on the downside to $0.95 on the upside. A TELA 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 TELA IV rank near 0.00% 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 TELA at 17.50%. As a Healthcare name, TELA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TELA-specific events.
TELA 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. TELA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TELA alongside the broader basket even when TELA-specific fundamentals are unchanged. Always rebuild the position from current TELA chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on TELA?
- A straddle on TELA is the straddle strategy applied to TELA (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 TELA stock trading near $0.90, the strikes shown on this page are snapped to the nearest listed TELA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TELA 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 TELA straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 17.50%), 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 TELA straddle?
- The breakeven for the TELA 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 TELA market-implied 1-standard-deviation expected move is approximately 5.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on TELA?
- Straddles on TELA are pure-volatility plays that profit from large moves in either direction; traders typically buy TELA 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 TELA implied volatility affect this straddle?
- TELA ATM IV is at 17.50% with IV rank near 0.00%, 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.