PennantPark Investment Corp (PNNT) Straddle

Trading a PNNT straddle lets you take a pure volatility position on PennantPark Investment Corp without committing to a direction. PennantPark Investment Corp'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 PNNT straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on PNNT 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 PennantPark Investment Corp 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 PNNT straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

PennantPark Investment Corporation, a business development company is a private equity fund specializes in direct and mezzanine investments in middle market companies. It invests in the form of mezzanine debt, senior secured loans, and equity investments. The fund typically invests in buildings and real estate, hotels, gaming and leisure, technology, telecommunications, transportation, information technology services, electronics, healthcare & pharmaceuticals, education and childcare, financial services, printing and publishing, consumer products, business services, energy & Related Services and utilities, distribution, oil and gas, media, environmental services, aerospace and defense, building materials, capital equipment, chemicals, plastics, & rubber, food & beverage, wholesale, manufacturing and basic industries and retail.

It invests in equity securities and debt transactions through preferred stock, common stock, warrants, options, senior secured debt, subordinated debt, subordinated loans, first lien debt, mezzanine loans, and distressed debt securities and private equity co-investments. It seeks to invest in companies based in the United States. The fund seeks to invest between $10 million and $100 million cross the capital structure (senior secured loans, subordinated debt, and other investments) in its portfolio companies with EBITDA between $10 to $50 million. Its mezzanine loans, senior secured loans, and other investments in its portfolio companies are between $15 million and $50 million. The fund may also make non-control equity and debt investments.

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