First Trust Preferred Securities and Income ETF (FPE) Straddle

Trading a FPE straddle lets you take a pure volatility position on First Trust Preferred Securities and Income ETF without committing to a direction. First Trust Preferred Securities and Income 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 FPE straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on FPE 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 Preferred Securities and Income 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 FPE straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

The First Trust Preferred Securities and Income ETF is an actively managed exchange-traded fund. The fund's investment objective is to seek total return and to provide current income. Under normal market conditions, the fund invests at least 80% of its net assets (including investment borrowings) in preferred securities and income-producing debt securities including corporate bonds, high yield securities and convertible securities.

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