Invesco KBW Premium Yield Equity REIT ETF (KBWY) Straddle

Trading a KBWY straddle lets you take a pure volatility position on Invesco KBW Premium Yield Equity REIT ETF without committing to a direction. Invesco KBW Premium Yield Equity REIT ETF's straddle involves buying (or selling) a call and a put at the same strike and expiration, profiting when the stock moves more (or less) than the combined premium implies. Use our scanner to evaluate KBWY straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on KBWY profits from large moves in either direction and is a classic play into binary events like earnings, product announcements, or macro releases. A short straddle profits when Invesco KBW Premium Yield Equity REIT ETF stays range-bound and implied volatility contracts. The breakeven points are simple: strike plus total premium on the upside, strike minus total premium on the downside. Comparing the KBWY straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

The Invesco KBW Premium Yield Equity REIT ETF (Fund) is based on the KBW Nasdaq Premium Yield Equity REIT Index (Index). The Fund generally will invest at least 90% of its total assets in the securities of small- and mid-cap equity REITs that have competitive dividend yields and are publicly-traded in the US that comprise the Index. Keefe, Bruyette & Woods, Inc. and Nasdaq, Inc. compile, maintain and calculate the Index, which is a modified-dividend yield-weighted index that seeks to reflect the performance of such companies. The Fund generally invests in all of the securities comprising the Underlying Index in proportion to their weightings in the Index.

The Fund and the Index are rebalanced and reconstituted on the third Friday of March, June, September and December.

Earnings, product cycles, macro prints — any time volatility itself is the trade, the KBWY straddle is the cleanest expression of that view. Our scanner prices every KBWY straddle against historical realized moves, flags expirations where the market is overpaying or underpaying for vol, and ranks setups by breakeven width and IV rank. Whether you're long a KBWY straddle into a catalyst or short a KBWY straddle to harvest decay, the options straddle setups that matter are all in one place.