DUHP Straddle Strategy
DUHP (Dimensional - US High Profitability ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The portfolio is designed to purchase a broad and diverse group of readily marketable securities of large U.S. companies that the Advisor determines to have high profitability relative to other U.S. large cap companies at the time of purchase. As a non-fundamental policy, under normal circumstances, the portfolio will invest at least 80% of its net assets in securities of U.S. companies.
DUHP (Dimensional - US High Profitability ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.40B, a beta of 0.92 versus the broader market, a 52-week range of 33.451-39.99, average daily share volume of 1.4M, a public-listing history dating back to 2022. These structural characteristics shape how DUHP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places DUHP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DUHP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on DUHP?
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 DUHP snapshot
As of May 15, 2026, spot at $39.94, ATM IV 9.80%, IV rank 0.46%, expected move 2.81%. The straddle on DUHP 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 DUHP specifically: DUHP IV at 9.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a DUHP straddle, with a market-implied 1-standard-deviation move of approximately 2.81% (roughly $1.12 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 DUHP expiries trade a higher absolute premium for lower per-day decay. Position sizing on DUHP should anchor to the underlying notional of $39.94 per share and to the trader's directional view on DUHP etf.
DUHP straddle setup
The DUHP 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 DUHP near $39.94, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DUHP 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 DUHP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $40.00 | $0.83 |
| Buy 1 | Put | $40.00 | $0.76 |
DUHP straddle risk and reward
- Net Premium / Debit
- -$158.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$143.93
- Breakeven(s)
- $38.42, $41.59
- 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.
DUHP straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on DUHP. 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 | -100.0% | +$3,840.50 |
| $8.84 | -77.9% | +$2,957.52 |
| $17.67 | -55.8% | +$2,074.53 |
| $26.50 | -33.7% | +$1,191.55 |
| $35.33 | -11.5% | +$308.56 |
| $44.16 | +10.6% | +$257.42 |
| $52.99 | +32.7% | +$1,140.41 |
| $61.82 | +54.8% | +$2,023.39 |
| $70.65 | +76.9% | +$2,906.38 |
| $79.48 | +99.0% | +$3,789.36 |
When traders use straddle on DUHP
Straddles on DUHP are pure-volatility plays that profit from large moves in either direction; traders typically buy DUHP straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
DUHP thesis for this straddle
The market-implied 1-standard-deviation range for DUHP extends from approximately $38.82 on the downside to $41.06 on the upside. A DUHP 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 DUHP IV rank near 0.46% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on DUHP at 9.80%. As a Financial Services name, DUHP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DUHP-specific events.
DUHP 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. DUHP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DUHP alongside the broader basket even when DUHP-specific fundamentals are unchanged. Always rebuild the position from current DUHP chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on DUHP?
- A straddle on DUHP is the straddle strategy applied to DUHP (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 DUHP etf trading near $39.94, the strikes shown on this page are snapped to the nearest listed DUHP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DUHP 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 DUHP straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 9.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$143.93 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DUHP straddle?
- The breakeven for the DUHP straddle priced on this page is roughly $38.42 and $41.59 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 DUHP market-implied 1-standard-deviation expected move is approximately 2.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on DUHP?
- Straddles on DUHP are pure-volatility plays that profit from large moves in either direction; traders typically buy DUHP 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 DUHP implied volatility affect this straddle?
- DUHP ATM IV is at 9.80% with IV rank near 0.46%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.