Running a PDP wheel strategy lets you generate consistent premium income on Invesco Dorsey Wright Momentum ETF while setting your own entry and exit prices on the underlying. Invesco Dorsey Wright Momentum ETF's wheel combines cash-secured puts and covered calls into a repeatable cycle: sell puts at strikes where you'd be happy to own PDP, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best PDP wheel strategy setups in real time.
The wheel works best on liquid, high-quality names with stable fundamentals and active options markets — exactly the profile many large-cap leaders fit. The mechanics are simple: sell a cash-secured put on PDP, collect premium, and either keep the premium if it expires worthless or take assignment at a discount to current price. Once assigned, sell covered calls against the shares to keep collecting premium until they're called away. Choosing the right strikes, expirations, and IV environment is what separates a profitable PDP wheel from a losing one.
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.
The difference between a wheel that compounds and one that bleeds comes down to strike selection, IV timing, and discipline on assignment. Our scanner handles the heavy lifting: it ranks every leg of the PDP wheel strategy by delta, premium yield, IV rank, and days to expiration, so you can deploy capital where the math works. Build your PDP wheel strategy on data, not gut feel — and let the options wheel do what it does best: pay you to wait.
