Vanguard Ultra-Short Bond ETF (VUSB) Straddle

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

A long straddle on VUSB 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 Ultra-Short 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 VUSB straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

The fund’s investment objective is to seek to provide current income while maintaining limited price volatility. The fund invests in a diversified portfolio of high-quality and, to a lesser extent, medium-quality fixed income securities. The fund is expected to maintain a dollar-weighted average maturity of 0 to 2 years. Under normal circumstances, the fund will invest at least 80% of its assets in fixed income securities. The fund is designed to give investors low-cost exposure to money market instruments and short-term high-quality bonds, including asset-backed, government, and investment-grade corporate securities.

Although short-term bond funds tend to have a higher yield than money market funds, their share price fluctuates. Because the Ultra-Short Bond ETF will subject investors to principal risk, the fund shouldn’t be viewed as a substitute for a money market fund. Additionally, increases in interest rates can cause the prices of the bonds in the portfolio, and thus the fund’s share price, to decrease.The Ultra-Short Bond ETF is a stand alone product and is separate and distinct from the Vanguard Ultra-Short-Term Bond Fund (VUBFX and VUSFX). 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 VUSB straddle is the cleanest expression of that view. Our scanner prices every VUSB 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 VUSB straddle into a catalyst or short a VUSB straddle to harvest decay, the options straddle setups that matter are all in one place.