Oaktree Specialty Lending Corp (OCSL) Straddle

Trading a OCSL straddle lets you take a pure volatility position on Oaktree Specialty Lending Corp without committing to a direction. Oaktree Specialty Lending Corp's straddle involves buying (or selling) a call and a put at the same strike and expiration, profiting when the stock moves more (or less) than the combined premium implies. Use our scanner to evaluate OCSL straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on OCSL profits from large moves in either direction and is a classic play into binary events like earnings, product announcements, or macro releases. A short straddle profits when Oaktree Specialty Lending Corp stays range-bound and implied volatility contracts. The breakeven points are simple: strike plus total premium on the upside, strike minus total premium on the downside. Comparing the OCSL straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

Oaktree Specialty Lending Corporation is a business development company specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity and management buyouts in small and mid-sized companies. It seeks to invest in education services, business services, retail and consumer, healthcare, manufacturing, food and restaurants, construction and engineering, and media and advertising sectors. It invests between $5 million to $75 million principally in the form of one-stop, first lien, and second lien debt investments, which may include an equity co-investment component in companies with enterprise value between $20 million and $150 million and EBITDA between $3 million and $50 million.

The fund has a hold size of up to $75 million and may underwrite transactions up to $100 million. It primarily invests in North America. The fund seeks to be a lead investor in its portfolio companies.

Earnings, product cycles, macro prints — any time volatility itself is the trade, the OCSL straddle is the cleanest expression of that view. Our scanner prices every OCSL straddle against historical realized moves, flags expirations where the market is overpaying or underpaying for vol, and ranks setups by breakeven width and IV rank. Whether you're long a OCSL straddle into a catalyst or short a OCSL straddle to harvest decay, the options straddle setups that matter are all in one place.