Trading a TMFC straddle lets you take a pure volatility position on Motley Fool 100 Index ETF without committing to a direction. Motley Fool 100 Index 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 TMFC straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on TMFC 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 Motley Fool 100 Index 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 TMFC straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
Under normal circumstances, at least 80% of the fund's total assets (exclusive of any collateral held from securities lending) will be invested in the component securities of the index. The index was established by TMF in 2017 and is a proprietary, rules-based index designed to track the performance of the 100 largest, most liquid U.S. companies that have been recommended by TMF’s analysts and newsletters. The fund is non-diversified.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the TMFC straddle is the cleanest expression of that view. Our scanner prices every TMFC 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 TMFC straddle into a catalyst or short a TMFC straddle to harvest decay, the options straddle setups that matter are all in one place.
