Trading a SVOL straddle lets you take a pure volatility position on Simplify Volatility Premium ETF without committing to a direction. Simplify Volatility Premium 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 SVOL straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on SVOL 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 Simplify Volatility Premium 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 SVOL straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Simplify Volatility Premium ETF (SVOL) seeks to provide investment results, before fees and expenses, that correspond to approximately one-fifth to three-tenths (-0.2x to -0.3x) the inverse of the performance of the Cboe Volatility Index (VIX) short-term futures index while also seeking to mitigate extreme volatility. We believe many traditional sources of income are failing to meet investor needs in today’s low yield environment. SVOL aims to provide an attractive income stream and source of diversification while seeking to avoid risks inherent in other income-producing asset classes. The fund’s short VIX position provides investors an optimized exposure for monetizing the premium in the VIX futures market.
A modest option overlay budget is then deployed into VIX call options to help protect against adverse moves in VIX.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the SVOL straddle is the cleanest expression of that view. Our scanner prices every SVOL 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 SVOL straddle into a catalyst or short a SVOL straddle to harvest decay, the options straddle setups that matter are all in one place.
