Trading a ARR straddle lets you take a pure volatility position on ARMOUR Residential REIT Inc without committing to a direction. ARMOUR Residential REIT Inc'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 ARR straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on ARR 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 ARMOUR Residential REIT Inc 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 ARR straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
ARMOUR Residential REIT, Inc. invests in residential mortgage-backed securities (MBS) in the United States. The company's securities portfolio primarily consists of the United States Government-sponsored entity's (GSE) and the Government National Mortgage Administration's issued or guaranteed securities backed by fixed rate, hybrid adjustable rate, and adjustable-rate home loans, as well as unsecured notes and bonds issued by the GSE and the United States treasuries, as well as money market instruments. It also invests in other securities backed by residential mortgages for which the payment of principal and interest is not guaranteed by a GSE or government agency.
The company has elected to be taxed as a real estate investment trust under the Internal Revenue Code. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. ARMOUR Residential REIT, Inc. was incorporated in 2008 and is based in Vero Beach, Florida.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the ARR straddle is the cleanest expression of that view. Our scanner prices every ARR 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 ARR straddle into a catalyst or short a ARR straddle to harvest decay, the options straddle setups that matter are all in one place.
