FJP Long Call Strategy
FJP (First Trust Japan AlphaDEX Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The First Trust Japan AlphaDEX Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the Nasdaq AlphaDEX Japan Index.
FJP (First Trust Japan AlphaDEX Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $254.5M, a beta of 0.83 versus the broader market, a 52-week range of 56.36-82.45, average daily share volume of 13K, a public-listing history dating back to 2011. These structural characteristics shape how FJP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places FJP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FJP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on FJP?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
Current FJP snapshot
As of May 15, 2026, spot at $77.85, ATM IV 25.20%, IV rank 1.40%, expected move 7.22%. The long call on FJP 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 98-day expiry.
Why this long call structure on FJP specifically: FJP IV at 25.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a FJP long call, with a market-implied 1-standard-deviation move of approximately 7.22% (roughly $5.62 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FJP expiries trade a higher absolute premium for lower per-day decay. Position sizing on FJP should anchor to the underlying notional of $77.85 per share and to the trader's directional view on FJP etf.
FJP long call setup
The FJP long call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FJP near $77.85, the first option leg uses a $78.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FJP chain at a 98-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 FJP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $78.00 | $4.42 |
FJP long call risk and reward
- Net Premium / Debit
- -$442.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$442.00
- Breakeven(s)
- $82.42
- Risk / Reward Ratio
- Unbounded
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
FJP long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on FJP. 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% | -$442.00 |
| $17.22 | -77.9% | -$442.00 |
| $34.43 | -55.8% | -$442.00 |
| $51.65 | -33.7% | -$442.00 |
| $68.86 | -11.6% | -$442.00 |
| $86.07 | +10.6% | +$364.98 |
| $103.28 | +32.7% | +$2,086.18 |
| $120.49 | +54.8% | +$3,807.37 |
| $137.71 | +76.9% | +$5,528.57 |
| $154.92 | +99.0% | +$7,249.76 |
When traders use long call on FJP
Long calls on FJP express a bullish thesis with defined risk; traders use them ahead of FJP catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
FJP thesis for this long call
The market-implied 1-standard-deviation range for FJP extends from approximately $72.23 on the downside to $83.47 on the upside. A FJP long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current FJP IV rank near 1.40% 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 FJP at 25.20%. As a Financial Services name, FJP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FJP-specific events.
FJP long call positions are structurally bullish; 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. FJP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FJP alongside the broader basket even when FJP-specific fundamentals are unchanged. Long-premium structures like a long call on FJP are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current FJP chain quotes before placing a trade.
Frequently asked questions
- What is a long call on FJP?
- A long call on FJP is the long call strategy applied to FJP (etf). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With FJP etf trading near $77.85, the strikes shown on this page are snapped to the nearest listed FJP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FJP long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the FJP long call priced from the end-of-day chain at a 30-day expiry (ATM IV 25.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$442.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FJP long call?
- The breakeven for the FJP long call priced on this page is roughly $82.42 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 FJP market-implied 1-standard-deviation expected move is approximately 7.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long call on FJP?
- Long calls on FJP express a bullish thesis with defined risk; traders use them ahead of FJP catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current FJP implied volatility affect this long call?
- FJP ATM IV is at 25.20% with IV rank near 1.40%, 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.