Invesco S&P SmallCap Consumer Staples ETF (PSCC) Covered Calls

Running PSCC covered calls helps you generate income from Invesco S&P SmallCap Consumer Staples ETF shares you already own, turning a long stock position into a yield producing asset. A covered call means holding the underlying stock and selling a call option against it, collecting premium in exchange for capping upside at the strike. Use our scanner to find the best PSCC covered calls in real time and filter for the strikes, expiries, and premiums that fit your strategy.

A covered call pairs limited risk with a clear income profile. If PSCC stays below the strike at expiration, you keep the premium and the shares. If it rises above, you deliver the stock at the strike and still pocket the premium. Selling PSCC covered calls works best when implied volatility is elevated, since richer premiums improve the risk reward. Key inputs include strike selection relative to delta, days to expiration, annualized return, and probability of assignment, all of which determine whether a given PSCC covered call is worth writing.

The Invesco S&P SmallCap Consumer Staples ETF (Fund) is based on the S&P SmallCap 600 Capped Consumer Staples Index (Index). The Fund will normally invest at least 90% of its total assets in the securities of small-capitalization US consumer staples companies that comprise the Index. The Index is designed to measure the overall performance of common stocks of US consumer staples companies. These companies are principally engaged in the business of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and beverage, and nondiscretionary retail.The Index is a subset of the S&P SmallCap 600 Index, which is a float-adjusted, market-capitalization-weighted index reflecting the US small-cap market.