Trading a FDIQ straddle lets you take a pure volatility position on Invesco Bloomberg Financial Data Providers ETF without committing to a direction. Invesco Bloomberg Financial Data Providers 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 FDIQ straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on FDIQ 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 Bloomberg Financial Data Providers 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 FDIQ straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Fund generally will invest at least 90% of its total assets in securities that comprise the New Underlying Index. The Index Provider compiles, maintains and calculates the New Underlying Index, which is designed to track the companies that, in the view of the Index Provider, provide essential services and technologies to the global financial system utilizing research from Bloomberg Intelligence (BI) (an affiliate of the Index Provider) and industry classifications pursuant to the Bloomberg Industry Classification Standard (BICS). To be eligible for inclusion in the New Underlying Index, a security must (i) be part of the Bloomberg developed markets universe (which as of the date of this document, consists of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Switzerland, Sweden, the United Kingdom and the United States), (ii) be classified by the Index Provider pursuant to BICS as a financial information services company or a security & commodity exchanges company, or be classified by BI as a enterprise fintech company within BIs capital markets category, (iii) qualify as a large-, mid-, or small-capitalization company based on metrics developed by the Index Provider, (iv) have minimum free float market capitalization of $500 million, and (v) have a minimum 90-day average daily value traded of $5 million.
Each security is weighted based on its modified market capitalization. The maximum weight of each security is generally capped at 4.5% of the New Underlying Index. The New Underlying Index is rebalanced quarterly after the close of trading on the third Friday of January, April, July and October.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the FDIQ straddle is the cleanest expression of that view. Our scanner prices every FDIQ 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 FDIQ straddle into a catalyst or short a FDIQ straddle to harvest decay, the options straddle setups that matter are all in one place.
