WMTI Straddle Strategy
WMTI (REX WMT Growth & Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
Under typical market circumstances, this exchange-traded fund (ETF) allocates a minimum of 80% of its total capital (inclusive of borrowed funds) to investments directly in WMT stock, instruments providing exposure to WMT, or securities designed to yield income from WMT-related positions. Its principal strategy for achieving this notional WMT exposure involves utilizing various options contracts on WMT, encompassing both conventional exchange-traded options and customizable Flexible EXchange® (FLEX) Options. Investors should be aware that this fund is classified as non-diversified.
WMTI (REX WMT Growth & Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $10.1M, a beta of 0.28 versus the broader market, a 52-week range of 20.13-30.34, average daily share volume of 35K, a public-listing history dating back to 2025. These structural characteristics shape how WMTI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.28 indicates WMTI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WMTI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on WMTI?
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.
WMTI snapshot
As of August 14, 2026, spot at $21.55, ATM IV 10.00%, IV rank 0.41%, expected move 2.87%. The straddle on WMTI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 126-day expiry.
Why this straddle structure on WMTI specifically: WMTI IV at 10.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a WMTI straddle, with a market-implied 1-standard-deviation move of approximately 2.87% (roughly $0.62 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WMTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WMTI should anchor to the underlying notional of $21.55 per share and to the trader's directional view on WMTI etf.
WMTI straddle setup
The WMTI straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WMTI at $21.55 on that close, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WMTI chain at a 126-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 WMTI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $22.00 | $0.95 |
| Buy 1 | Put | $22.00 | $2.40 |
WMTI straddle risk and reward
- Net Premium / Debit
- -$335.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$325.37
- Breakeven(s)
- $18.65, $25.35
- 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.
WMTI straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on WMTI. 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% | +$1,864.00 |
| $4.77 | -77.8% | +$1,387.63 |
| $9.54 | -55.7% | +$911.26 |
| $14.30 | -33.6% | +$434.88 |
| $19.06 | -11.5% | -$41.49 |
| $23.83 | +10.6% | -$152.14 |
| $28.59 | +32.7% | +$324.23 |
| $33.36 | +54.8% | +$800.60 |
| $38.12 | +76.9% | +$1,276.97 |
| $42.88 | +99.0% | +$1,753.35 |
When traders use straddle on WMTI
Straddles on WMTI are pure-volatility plays that profit from large moves in either direction; traders typically buy WMTI straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
WMTI thesis for this straddle
The market-implied 1-standard-deviation range for WMTI extends from approximately $20.93 on the downside to $22.17 on the upside. A WMTI 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 WMTI IV rank near 0.41% 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 WMTI at 10.00%. As a Financial Services name, WMTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WMTI-specific events.
WMTI 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. WMTI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WMTI alongside the broader basket even when WMTI-specific fundamentals are unchanged. Always rebuild the position from current WMTI chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on WMTI?
- A straddle on WMTI is the straddle strategy applied to WMTI (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 WMTI etf at $21.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WMTI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WMTI 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 WMTI straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 10.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$325.37 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WMTI straddle?
- The breakeven for the WMTI straddle priced on this page is roughly $18.65 and $25.35 at expiration, derived from the August 14, 2026 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 WMTI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 2.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on WMTI?
- Straddles on WMTI are pure-volatility plays that profit from large moves in either direction; traders typically buy WMTI 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 WMTI implied volatility affect this straddle?
- WMTI ATM IV is at 10.00% with IV rank near 0.41%, 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.