FMET Straddle Strategy
FMET (Fidelity Metaverse ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Invests in the tech leaders and emerging businesses helping to create the new digital world though digital content, infrastructure, and wearable technology.
FMET (Fidelity Metaverse ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $45.1M, a beta of 1.35 versus the broader market, a 52-week range of 30.08-39.44, average daily share volume of 4K, a public-listing history dating back to 2022. These structural characteristics shape how FMET etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates FMET has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FMET pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on FMET?
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 FMET snapshot
As of May 15, 2026, spot at $37.63, ATM IV 38.00%, IV rank 23.51%, expected move 10.89%. The straddle on FMET 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 189-day expiry.
Why this straddle structure on FMET specifically: FMET IV at 38.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a FMET straddle, with a market-implied 1-standard-deviation move of approximately 10.89% (roughly $4.10 on the underlying). The 189-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FMET expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMET should anchor to the underlying notional of $37.63 per share and to the trader's directional view on FMET etf.
FMET straddle setup
The FMET 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 FMET near $37.63, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMET chain at a 189-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 FMET shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $38.00 | $4.13 |
| Buy 1 | Put | $38.00 | $3.93 |
FMET straddle risk and reward
- Net Premium / Debit
- -$806.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$788.41
- Breakeven(s)
- $29.94, $46.06
- 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.
FMET straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on FMET. 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% | +$2,993.00 |
| $8.33 | -77.9% | +$2,161.09 |
| $16.65 | -55.8% | +$1,329.18 |
| $24.97 | -33.7% | +$497.27 |
| $33.29 | -11.5% | -$334.64 |
| $41.61 | +10.6% | -$445.45 |
| $49.92 | +32.7% | +$386.46 |
| $58.24 | +54.8% | +$1,218.37 |
| $66.56 | +76.9% | +$2,050.28 |
| $74.88 | +99.0% | +$2,882.19 |
When traders use straddle on FMET
Straddles on FMET are pure-volatility plays that profit from large moves in either direction; traders typically buy FMET straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
FMET thesis for this straddle
The market-implied 1-standard-deviation range for FMET extends from approximately $33.53 on the downside to $41.73 on the upside. A FMET 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 FMET IV rank near 23.51% 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 FMET at 38.00%. As a Financial Services name, FMET options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FMET-specific events.
FMET 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. FMET positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FMET alongside the broader basket even when FMET-specific fundamentals are unchanged. Always rebuild the position from current FMET chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on FMET?
- A straddle on FMET is the straddle strategy applied to FMET (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 FMET etf trading near $37.63, the strikes shown on this page are snapped to the nearest listed FMET chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FMET 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 FMET straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$788.41 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FMET straddle?
- The breakeven for the FMET straddle priced on this page is roughly $29.94 and $46.06 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 FMET market-implied 1-standard-deviation expected move is approximately 10.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on FMET?
- Straddles on FMET are pure-volatility plays that profit from large moves in either direction; traders typically buy FMET 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 FMET implied volatility affect this straddle?
- FMET ATM IV is at 38.00% with IV rank near 23.51%, 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.