Trading a DFSV straddle lets you take a pure volatility position on Dimensional US Small Cap Value ETF without committing to a direction. Dimensional US Small Cap Value 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 DFSV straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on DFSV 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 Small Cap Value 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 DFSV straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The portfolio, using a market capitalization weighted approach, is designed to purchase a broad and diverse group of the readily marketable securities of U.S. small cap companies that the Advisor determines to be value stocks. Under a market capitalization weighted approach, companies with higher market capitalizations generally represent a larger proportion of the portfolio than companies with relatively lower market capitalizations. As a non-fundamental policy, under normal circumstances, the portfolio will invest at least 80% of its net assets in securities of small cap U.S. companies.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the DFSV straddle is the cleanest expression of that view. Our scanner prices every DFSV 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 DFSV straddle into a catalyst or short a DFSV straddle to harvest decay, the options straddle setups that matter are all in one place.
