Invesco Preferred ETF (PGX) Straddle

Trading a PGX straddle lets you take a pure volatility position on Invesco Preferred ETF without committing to a direction. Invesco Preferred 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 PGX straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on PGX 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 Preferred 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 PGX straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

The Invesco Preferred ETF (Fund) is based on the ICE BofAML Core Plus Fixed Rate Preferred Securities Index (Index). The Fund will normally invest at least 80% of its total assets in fixed rate US dollar-denominated preferred securities that comprise the Index. The Index tracks the performance of fixed rate US dollar-denominated preferred securities issued in the US domestic market. (Securities must be rated at least B3, based on an average of three leading ratings agencies: Moody’s, S&P and Fitch) and must have an investment-grade country risk profile (based on an average of Moody’s, S&P and Fitch foreign currency long-term sovereign debt ratings).

The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a "sampling" methodology to seek to achieve its investment objective. The Fund and the Index are rebalanced and reconstituted on a monthly basis.

Earnings, product cycles, macro prints — any time volatility itself is the trade, the PGX straddle is the cleanest expression of that view. Our scanner prices every PGX 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 PGX straddle into a catalyst or short a PGX straddle to harvest decay, the options straddle setups that matter are all in one place.