FDTX Straddle Strategy
FDTX (Fidelity Disruptive Technology ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Invests in new technologies such as companies delivering cloud computing, harnessing big data, and transforming consumer experiences through internet and mobile platforms.
FDTX (Fidelity Disruptive Technology ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $186.4M, a beta of 1.51 versus the broader market, a 52-week range of 34.66-50.52, average daily share volume of 19K, a public-listing history dating back to 2023. These structural characteristics shape how FDTX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.51 indicates FDTX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FDTX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on FDTX?
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 FDTX snapshot
As of May 15, 2026, spot at $49.88, ATM IV 32.80%, expected move 9.40%. The straddle on FDTX 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 FDTX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FDTX is inferred from ATM IV at 32.80% alone, with a market-implied 1-standard-deviation move of approximately 9.40% (roughly $4.69 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 FDTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDTX should anchor to the underlying notional of $49.88 per share and to the trader's directional view on FDTX etf.
FDTX straddle setup
The FDTX 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 FDTX near $49.88, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDTX 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 FDTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $50.00 | $2.03 |
| Buy 1 | Put | $50.00 | $1.99 |
FDTX straddle risk and reward
- Net Premium / Debit
- -$402.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$388.44
- Breakeven(s)
- $45.98, $54.02
- 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.
FDTX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on FDTX. 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% | +$4,597.00 |
| $11.04 | -77.9% | +$3,494.24 |
| $22.07 | -55.8% | +$2,391.47 |
| $33.09 | -33.7% | +$1,288.71 |
| $44.12 | -11.5% | +$185.94 |
| $55.15 | +10.6% | +$112.82 |
| $66.18 | +32.7% | +$1,215.58 |
| $77.20 | +54.8% | +$2,318.35 |
| $88.23 | +76.9% | +$3,421.11 |
| $99.26 | +99.0% | +$4,523.87 |
When traders use straddle on FDTX
Straddles on FDTX are pure-volatility plays that profit from large moves in either direction; traders typically buy FDTX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
FDTX thesis for this straddle
The market-implied 1-standard-deviation range for FDTX extends from approximately $45.19 on the downside to $54.57 on the upside. A FDTX 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. As a Financial Services name, FDTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDTX-specific events.
FDTX 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. FDTX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FDTX alongside the broader basket even when FDTX-specific fundamentals are unchanged. Always rebuild the position from current FDTX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on FDTX?
- A straddle on FDTX is the straddle strategy applied to FDTX (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 FDTX etf trading near $49.88, the strikes shown on this page are snapped to the nearest listed FDTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FDTX 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 FDTX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 32.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$388.44 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDTX straddle?
- The breakeven for the FDTX straddle priced on this page is roughly $45.98 and $54.02 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 FDTX market-implied 1-standard-deviation expected move is approximately 9.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on FDTX?
- Straddles on FDTX are pure-volatility plays that profit from large moves in either direction; traders typically buy FDTX 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 FDTX implied volatility affect this straddle?
- Current FDTX ATM IV is 32.80%; IV rank context is unavailable in the current snapshot.