Trading a DBO straddle lets you take a pure volatility position on Invesco DB Oil Fund without committing to a direction. Invesco DB Oil Fund'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 DBO straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on DBO 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 Invesco DB Oil Fund 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 DBO straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Invesco DB Oil (Fund) seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ Opt Yield Crude Oil Index ER or Index) plus the interest income from the Fund's holdings of primarily US Treasury securities and money market income less the Fund's expenses. The Fund is designed for investors who want a cost-effective and convenient way to invest in commodity futures. The Index is a rules-based index composed of futures contracts on light sweet crude oil (WTI). You cannot invest directly in the Index. The Fund and the Index are rebalanced and reconstituted annually in November.This Fund is not suitable for all investors due to the speculative nature of an investment based upon the Fund's trading which takes place in very volatile markets.
Because an investment in futures contracts is volatile, such frequency in the movement in market prices of the underlying futures contracts could cause large losses. Please see "Risk and Other Information" and the Prospectus for additional risk disclosures.For this fund's qualified notices for IRS Section 1446(f) Rule regarding Publicly Traded Partnerships (PTPs), please visit our ETF tax centerForm 1065 Schedule K-3 FAQ for Invesco DB Funds (Securities Act of 1933)
Earnings, product cycles, macro prints — any time volatility itself is the trade, the DBO straddle is the cleanest expression of that view. Our scanner prices every DBO 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 DBO straddle into a catalyst or short a DBO straddle to harvest decay, the options straddle setups that matter are all in one place.
