Trading a QMOM straddle lets you take a pure volatility position on Alpha Architect U.S. Quantitative Momentum ETF without committing to a direction. Alpha Architect U.S. Quantitative Momentum 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 QMOM straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on QMOM 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 Alpha Architect U.S. Quantitative Momentum 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 QMOM straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Adviser employs a multi-step, quantitative, rules-based methodology to identify a portfolio of approximately 50 to 100 equity securities with the highest relative momentum. A “momentum” style of investing emphasizes investing in securities that have had higher recent total return performance compared to other securities. The Adviser then employs proprietary screens to eliminate companies with issues that may negatively impact their momentum. The fund may also invest up to 20% of its assets in cash and cash equivalents, other investment companies, as well as securities and other instruments.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the QMOM straddle is the cleanest expression of that view. Our scanner prices every QMOM 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 QMOM straddle into a catalyst or short a QMOM straddle to harvest decay, the options straddle setups that matter are all in one place.
