Vanguard Core Plus Bond ETF (VPLS) Straddle

Trading a VPLS straddle lets you take a pure volatility position on Vanguard Core Plus Bond ETF without committing to a direction. Vanguard Core Plus Bond 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 VPLS straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on VPLS 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 Vanguard Core Plus Bond 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 VPLS straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

This actively managed fund seeks to provide broadly diversified exposure primarily to the U.S. investment-grade bond market, with selective exposure to below-investment-grade bonds and debt from other countries, including emerging markets. The low-cost fund invests in U.S. Treasury, mortgage-backed, and corporate securities, and emerging markets debt of varying yields, maturities, and credit qualities. Using a disciplined, risk-controlled approach, the fund seeks to outperform its benchmark through security selection, sector allocation, and duration decisions. Like other bond funds, the fund is subject to interest rate risk; increases in interest rates may cause the price of the bonds in the portfolio to decrease, reducing the fund’s net asset value.

This fund is expected to have a moderate allocation to lower-credit-quality securities, so it is also subject to credit risk; negative perceptions about an issuer’s ability to make its interest or principal payments in a timely manner may cause the price of that bond to decrease. Since the fund invests in all major segments, maturities, and qualities of the fixed income market, investors willing to accept additional risk in their fixed income allocation may consider the fund as a core bond holding.The Vanguard Core-Plus Bond ETF is a stand alone product and is separate and distinct from the Vanguard Core-Plus Bond Index ETF (BNDP) and the Vanguard Core-Plus Bond Fund (VCPIX and VCPAX). Differences in scale, certain investment processes, and underlying holdings are expected to produce different investment returns by the funds.

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