TUSK Straddle Strategy
TUSK (Mammoth Energy Services, Inc.), in the Industrials sector, (Conglomerates industry), listed on NASDAQ.
Mammoth Energy Services, Inc. operates as a company providing a variety of services to the energy sector. Its operations are divided into four main business units: Infrastructure Services, Well Completion Services, Natural Sand Proppant Services, and Drilling Services. The Infrastructure Services division delivers a full spectrum of solutions for electrical power grids, including transmission, distribution, and substation facilities. This encompasses engineering, design, construction, system upgrades, routine maintenance, and repair work for high-voltage transmission lines, substations, and both overhead and subterranean lower-voltage distribution networks. Additionally, the segment is vital for emergency storm restoration efforts and provides commercial electrical services, such as wiring installation, upkeep, and repair. Well Completion Services specializes in high-pressure hydraulic fracturing (fracking) techniques designed to optimize the extraction of oil and natural gas from geological formations with low permeability.
TUSK (Mammoth Energy Services, Inc.) trades in the Industrials sector, specifically Conglomerates, with a market capitalization of approximately $141.6M, a beta of 1.11 versus the broader market, a 52-week range of 1.715-3.92, average daily share volume of 391K, a public-listing history dating back to 2016, approximately 639 full-time employees. These structural characteristics shape how TUSK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places TUSK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on TUSK?
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 TUSK snapshot
As of June 29, 2026, spot at $2.92, ATM IV 168.70%, IV rank 41.28%, expected move 48.36%. The straddle on TUSK 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 18-day expiry.
Why this straddle structure on TUSK specifically: TUSK IV at 168.70% 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 48.36% (roughly $1.41 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TUSK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TUSK should anchor to the underlying notional of $2.92 per share and to the trader's directional view on TUSK stock.
TUSK straddle setup
The TUSK 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 TUSK near $2.92, the first option leg uses a $2.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TUSK chain at a 18-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 TUSK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.92 | N/A |
| Buy 1 | Put | $2.92 | N/A |
TUSK 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.
TUSK straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on TUSK. 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 TUSK
Straddles on TUSK are pure-volatility plays that profit from large moves in either direction; traders typically buy TUSK straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
TUSK thesis for this straddle
The market-implied 1-standard-deviation range for TUSK extends from approximately $1.51 on the downside to $4.33 on the upside. A TUSK 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 TUSK IV rank near 41.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on TUSK should anchor more to the directional view and the expected-move geometry. As a Industrials name, TUSK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TUSK-specific events.
TUSK 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. TUSK positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TUSK alongside the broader basket even when TUSK-specific fundamentals are unchanged. Always rebuild the position from current TUSK chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on TUSK?
- A straddle on TUSK is the straddle strategy applied to TUSK (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 TUSK stock trading near $2.92, the strikes shown on this page are snapped to the nearest listed TUSK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TUSK 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 TUSK straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 168.70%), 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 TUSK straddle?
- The breakeven for the TUSK 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 TUSK market-implied 1-standard-deviation expected move is approximately 48.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on TUSK?
- Straddles on TUSK are pure-volatility plays that profit from large moves in either direction; traders typically buy TUSK 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 TUSK implied volatility affect this straddle?
- TUSK ATM IV is at 168.70% with IV rank near 41.28%, 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.