First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) Straddle

Trading a DVOL straddle lets you take a pure volatility position on First Trust Dorsey Wright Momentum & Low Volatility ETF without committing to a direction. First Trust Dorsey Wright Momentum & Low Volatility 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 DVOL straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on DVOL 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 First Trust Dorsey Wright Momentum & Low Volatility 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 DVOL straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

The First Trust Dorsey Wright Momentum & Low Volatility ETF (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called the Dorsey Wright Momentum Plus Low Volatility Index (the "Index"). Under normal conditions, the Fund will invest at least 90% of its net assets (including investment borrowings) in the equity securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Fund's investment advisor seeks a correlation of 0.95 or better (before fees and expenses) between the Fund's performance and the performance of the Index; a figure of 1.00 would represent perfect correlation.

The Index is owned and was developed by Nasdaq, Inc. (the "Index Provider").

Earnings, product cycles, macro prints — any time volatility itself is the trade, the DVOL straddle is the cleanest expression of that view. Our scanner prices every DVOL 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 DVOL straddle into a catalyst or short a DVOL straddle to harvest decay, the options straddle setups that matter are all in one place.