Trading a DFAU straddle lets you take a pure volatility position on Dimensional US Core Equity Market ETF without committing to a direction. Dimensional US Core Equity Market ETF'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 DFAU straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on DFAU 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 Dimensional US Core Equity Market ETF 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 DFAU straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The fund will invest in companies of all sizes, with increased exposure to smaller capitalization, lower relative price, and higher profitability companies as compared to their representation in the U.S. Universe. As a non-fundamental policy, under normal circumstances, it will invest at least 80% of its net assets in equity securities of U.S. companies. The Advisor may also increase or reduce the fund's exposure to an eligible company, or exclude a company, based on shorter-term considerations, such as a company's price momentum and investment characteristics.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the DFAU straddle is the cleanest expression of that view. Our scanner prices every DFAU 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 DFAU straddle into a catalyst or short a DFAU straddle to harvest decay, the options straddle setups that matter are all in one place.
