AQWA Straddle Strategy
AQWA (Global X - Clean Water ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
The Global X Clean Water ETF (AQWA) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Clean Water Industry Index.
AQWA (Global X - Clean Water ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $13.2M, a beta of 0.96 versus the broader market, a 52-week range of 17.96-20.92, average daily share volume of 38K, a public-listing history dating back to 2021. These structural characteristics shape how AQWA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places AQWA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AQWA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on AQWA?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current AQWA snapshot
As of May 15, 2026, spot at $18.61, ATM IV 305.00%, IV rank 65.47%, expected move 5.66%. The straddle on AQWA below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this straddle structure on AQWA specifically: AQWA IV at 305.00% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 5.66% (roughly $1.05 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AQWA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AQWA should anchor to the underlying notional of $18.61 per share and to the trader's directional view on AQWA etf.
AQWA straddle setup
The AQWA straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AQWA near $18.61, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AQWA chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AQWA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $19.00 | $0.33 |
| Buy 1 | Put | $19.00 | $0.53 |
AQWA straddle risk and reward
- Net Premium / Debit
- -$85.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$77.25
- Breakeven(s)
- $18.15, $19.86
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
AQWA straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on AQWA. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | +$1,813.50 |
| $4.12 | -77.8% | +$1,402.13 |
| $8.24 | -55.7% | +$990.77 |
| $12.35 | -33.6% | +$579.40 |
| $16.46 | -11.5% | +$168.03 |
| $20.58 | +10.6% | +$72.33 |
| $24.69 | +32.7% | +$483.70 |
| $28.81 | +54.8% | +$895.07 |
| $32.92 | +76.9% | +$1,306.43 |
| $37.03 | +99.0% | +$1,717.80 |
When traders use straddle on AQWA
Straddles on AQWA are pure-volatility plays that profit from large moves in either direction; traders typically buy AQWA straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
AQWA thesis for this straddle
The market-implied 1-standard-deviation range for AQWA extends from approximately $17.56 on the downside to $19.66 on the upside. A AQWA long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current AQWA IV rank near 65.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on AQWA should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AQWA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AQWA-specific events.
AQWA straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AQWA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AQWA alongside the broader basket even when AQWA-specific fundamentals are unchanged. Always rebuild the position from current AQWA chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on AQWA?
- A straddle on AQWA is the straddle strategy applied to AQWA (etf). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With AQWA etf trading near $18.61, the strikes shown on this page are snapped to the nearest listed AQWA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AQWA straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the AQWA straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 305.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$77.25 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AQWA straddle?
- The breakeven for the AQWA straddle priced on this page is roughly $18.15 and $19.86 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AQWA market-implied 1-standard-deviation expected move is approximately 5.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on AQWA?
- Straddles on AQWA are pure-volatility plays that profit from large moves in either direction; traders typically buy AQWA straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current AQWA implied volatility affect this straddle?
- AQWA ATM IV is at 305.00% with IV rank near 65.47%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.