FUTY Straddle Strategy
FUTY (Fidelity MSCI Utilities Index ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
This ETF is designed to mirror the financial performance of the MSCI USA IMI Utilities 25/50 Index.
FUTY (Fidelity MSCI Utilities Index ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $2.33B, a beta of 0.50 versus the broader market, a 52-week range of 53.23-61.51, average daily share volume of 378K, a public-listing history dating back to 2013. These structural characteristics shape how FUTY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.50 indicates FUTY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FUTY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on FUTY?
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.
FUTY snapshot
As of August 14, 2026, spot at $57.28, ATM IV 14.40%, IV rank 10.63%, expected move 4.13%. The straddle on FUTY below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this straddle structure on FUTY specifically: FUTY IV at 14.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a FUTY straddle, with a market-implied 1-standard-deviation move of approximately 4.13% (roughly $2.36 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FUTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on FUTY should anchor to the underlying notional of $57.28 per share and to the trader's directional view on FUTY etf.
FUTY straddle setup
The FUTY 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 FUTY at $57.28 on that close, the first option leg uses a $57.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FUTY chain at a 35-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 FUTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $57.28 | N/A |
| Buy 1 | Put | $57.28 | N/A |
FUTY straddle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
FUTY straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on FUTY. 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.
When traders use straddle on FUTY
Straddles on FUTY are pure-volatility plays that profit from large moves in either direction; traders typically buy FUTY straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
FUTY thesis for this straddle
The market-implied 1-standard-deviation range for FUTY extends from approximately $54.92 on the downside to $59.64 on the upside. A FUTY 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 FUTY IV rank near 10.63% 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 FUTY at 14.40%. As a Financial Services name, FUTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FUTY-specific events.
FUTY 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. FUTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FUTY alongside the broader basket even when FUTY-specific fundamentals are unchanged. Always rebuild the position from current FUTY chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on FUTY?
- A straddle on FUTY is the straddle strategy applied to FUTY (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 FUTY etf at $57.28 on the most recent close, the strikes shown on this page are snapped to the nearest listed FUTY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FUTY 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 FUTY straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 14.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FUTY straddle?
- The breakeven for the FUTY straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FUTY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on FUTY?
- Straddles on FUTY are pure-volatility plays that profit from large moves in either direction; traders typically buy FUTY 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 FUTY implied volatility affect this straddle?
- FUTY ATM IV is at 14.40% with IV rank near 10.63%, 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.