Trading a PDP straddle lets you take a pure volatility position on Invesco Dorsey Wright Momentum ETF without committing to a direction. Invesco Dorsey Wright Momentum 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 PDP straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on PDP 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 Dorsey Wright Momentum 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 PDP straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Invesco Dorsey Wright Momentum ETF (Fund) is based on the Dorsey Wright Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in securities that comprise the Index. The Index includes approximately 100 US companies from the NASDAQ US Benchmark Index. The Index is constructed pursuant to Dorsey, Wright & Associates, LLC's proprietary methodology that is designed to identify companies that demonstrate powerful relative strength characteristics. Relative strength is the measurement of a security’s performance in a given universe over time as compared to the performance of all other securities in that universe.
The Fund and the Index are rebalanced and reconstituted quarterly.Effective after the close of markets on Aug. 25, 2023, the Fund’s name changed from Invesco DWA Momentum ETF to Invesco Dorsey Wright Momentum ETF. No other changes were made to the Fund. See the prospectus for more information.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the PDP straddle is the cleanest expression of that view. Our scanner prices every PDP 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 PDP straddle into a catalyst or short a PDP straddle to harvest decay, the options straddle setups that matter are all in one place.
