EDGX Straddle Strategy
EDGX (Global X U.S. 500 Income Edge ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Fund seeks to provide current income and exposure to the Solactive GBS United States 500 Index. The Fund seeks to generate weekly income by selling call options and to provide exposure to the Index by investing in the equity securities that comprise the Reference Index and ETFs that share economic characteristics.
EDGX (Global X U.S. 500 Income Edge ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $783,454, a beta of 0.89 versus the broader market, a 52-week range of 23.26-27.78, average daily share volume of 5K, a public-listing history dating back to 2026. These structural characteristics shape how EDGX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.89 places EDGX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EDGX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on EDGX?
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 EDGX snapshot
As of June 29, 2026, spot at $33.10, ATM IV 192.50%, expected move 55.19%. The straddle on EDGX 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 53-day expiry.
Why this straddle structure on EDGX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for EDGX is inferred from ATM IV at 192.50% alone, with a market-implied 1-standard-deviation move of approximately 55.19% (roughly $18.27 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EDGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on EDGX should anchor to the underlying notional of $33.10 per share and to the trader's directional view on EDGX stock.
EDGX straddle setup
The EDGX 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 EDGX near $33.10, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EDGX chain at a 53-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 EDGX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $33.00 | $2.15 |
| Buy 1 | Put | $33.00 | $6.85 |
EDGX straddle risk and reward
- Net Premium / Debit
- -$900.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$893.87
- Breakeven(s)
- $24.00, $42.00
- 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.
EDGX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on EDGX. 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% | +$2,399.00 |
| $7.33 | -77.9% | +$1,667.25 |
| $14.64 | -55.8% | +$935.50 |
| $21.96 | -33.6% | +$203.75 |
| $29.28 | -11.5% | -$527.99 |
| $36.60 | +10.6% | -$540.26 |
| $43.91 | +32.7% | +$191.49 |
| $51.23 | +54.8% | +$923.24 |
| $58.55 | +76.9% | +$1,654.99 |
| $65.87 | +99.0% | +$2,386.74 |
When traders use straddle on EDGX
Straddles on EDGX are pure-volatility plays that profit from large moves in either direction; traders typically buy EDGX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
EDGX thesis for this straddle
The market-implied 1-standard-deviation range for EDGX extends from approximately $14.83 on the downside to $51.37 on the upside. A EDGX 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. As a Financial Services name, EDGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EDGX-specific events.
EDGX 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. EDGX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EDGX alongside the broader basket even when EDGX-specific fundamentals are unchanged. Always rebuild the position from current EDGX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on EDGX?
- A straddle on EDGX is the straddle strategy applied to EDGX (stock). 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 EDGX stock trading near $33.10, the strikes shown on this page are snapped to the nearest listed EDGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EDGX 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 EDGX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 192.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$893.87 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EDGX straddle?
- The breakeven for the EDGX straddle priced on this page is roughly $24.00 and $42.00 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 EDGX market-implied 1-standard-deviation expected move is approximately 55.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on EDGX?
- Straddles on EDGX are pure-volatility plays that profit from large moves in either direction; traders typically buy EDGX 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 EDGX implied volatility affect this straddle?
- Current EDGX ATM IV is 192.50%; IV rank context is unavailable in the current snapshot.