Trading a RDVY straddle lets you take a pure volatility position on First Trust Rising Dividend Achievers ETF without committing to a direction. First Trust Rising Dividend Achievers 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 RDVY straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on RDVY 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 Rising Dividend Achievers 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 RDVY straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Fund seeks investment results that correspond generally to the price and yield (before the fees and expenses) of the Nasdaq US Rising Dividend Achievers Index (the "Index"). The Fund will normally invest at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in securities that comprise the Index. The Index is comprised of a selection of companies with a history of raising their dividends and that exhibit the characteristics to potentially continue doing so in the future. The Index construction process considers a company's earnings growth, levels of cash compared to debt and the amount of earnings that are paid out as dividends.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the RDVY straddle is the cleanest expression of that view. Our scanner prices every RDVY 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 RDVY straddle into a catalyst or short a RDVY straddle to harvest decay, the options straddle setups that matter are all in one place.
