Ellington Credit Co (EARN) Straddle

Trading a EARN straddle lets you take a pure volatility position on Ellington Credit Co without committing to a direction. Ellington Credit Co'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 EARN straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on EARN 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 Ellington Credit Co 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 EARN straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS comprising non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders.

Ellington Residential Mortgage REIT was incorporated in 2012 and is based in Old Greenwich, Connecticut.

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