First Trust Dorsey Wright Focus 5 ETF (FV) Volatility Skew
Implied volatility skew shows how IV varies across strike prices for a given expiration. Steeper skews indicate higher demand for downside protection relative to upside speculation.
First Trust Dorsey Wright Focus 5 ETF (FV) operates in the Financial Services sector, specifically the Asset Management industry, with a market capitalization near $3.55B, listed on NASDAQ, carrying a beta of 1.28 to the broader market. This exchange-traded fund seeks investment results that correspond generally to the price and yield (before the fund's fees and expenses) of an equity index called the Dorsey Wright Focus Five Index. public since 2014-03-06.
Snapshot as of May 14, 2026.
- Spot Price
- $70.38
- ATM IV
- 17.4%
- IV Skew 25Δ
- 0.033
- IV Rank
- 1.5%
- IV Percentile
- 34.5%
- Term Structure Slope
- 0.008
As of May 14, 2026, First Trust Dorsey Wright Focus 5 ETF (FV) at-the-money implied volatility is 17.4%. IV rank is 1.5% (where 0% is the 52-week low and 100% is the 52-week high). IV percentile is 34.5%. The 25-delta skew is +0.033: calls carry premium over puts, indicating upside speculation or squeeze risk. High IV rank typically favors premium-selling strategies; low IV rank favors premium-buying.
FV Strategy Selection at Current Volatility Levels
For First Trust Dorsey Wright Focus 5 ETF options at 17.4% ATM IV, low IV rank (1.5%) favors premium-buying or long-vol structures: long calls or puts, debit spreads, calendar spreads, long straddles. The risk: low-rank regimes can persist for months while time decay eats premium-buyers alive. The 25-delta skew tilts to calls, so call-credit spreads or covered-call writes harvest more premium than put-credit spreads of the same width. Pair the vol-rank read with the dealer-gamma view and the upcoming-events calendar to confirm the strategy fits both the structural regime and the path-dependent risk. The variance risk premium - the persistent gap between implied and subsequently realized vol - is positive in equity markets on average; high IV rank typically reflects a stretch where the premium is wider than usual.
Learn how volatility skew is reported and how to read the data →
Frequently asked FV volatility skew questions
- What is the current FV ATM implied volatility?
- As of May 14, 2026, First Trust Dorsey Wright Focus 5 ETF (FV) at-the-money implied volatility is 17.4%. IV rank is 1.5% on a 0-100% scale anchored to the 1-year IV range. ATM IV is the volatility input that makes a Black-Scholes-equivalent model reproduce the listed at-the-money option prices.
- Is FV IV high or low historically?
- IV is subdued relative to its 1-year history, conditions that typically favor premium-buying strategies (long calls, long puts, debit spreads, calendar spreads).
- What does FV volatility skew tell options traders?
- Volatility skew is the pattern by which IV varies across strikes for a given expiration. First Trust Dorsey Wright Focus 5 ETF shows upside-skewed pricing: 25-delta calls trade richer than 25-delta puts, often reflecting upside speculation or squeeze risk. Skew matters for risk-defined strategy selection: when downside puts are rich, put-credit spreads capture more premium; when upside calls are rich, call-credit spreads or covered-call writes harvest more.