Trading a PBE straddle lets you take a pure volatility position on Invesco Biotechnology & Genome ETF without committing to a direction. Invesco Biotechnology & Genome 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 PBE straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on PBE 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 Biotechnology & Genome 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 PBE straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Invesco Biotechnology & Genome ETF (Fund) is based on the Dynamic Biotech & Genome Intellidex Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. The Index is comprised of securities of 30 US biotechnology and genome companies. These are companies that are principally engaged in the research, development, manufacture and marketing and distribution of various biotechnological products, services and processes and companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research.
The Fund and the Index are rebalanced and reconstituted quarterly in February, May, August and November.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the PBE straddle is the cleanest expression of that view. Our scanner prices every PBE 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 PBE straddle into a catalyst or short a PBE straddle to harvest decay, the options straddle setups that matter are all in one place.
