Trading a PSCE straddle lets you take a pure volatility position on Invesco S&P SmallCap Energy ETF without committing to a direction. Invesco S&P SmallCap Energy 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 PSCE straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on PSCE 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 S&P SmallCap Energy 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 PSCE straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Invesco S&P SmallCap Energy ETF (Fund) is based on the S&P SmallCap 600 Capped Energy Index (Index). The Fund will normally invest at least 90% of its total assets in the securities of small-capitalization US energy companies that comprise the Underlying Index. The Index is designed to measure the overall performance of common stocks of US energy companies. These companies are principally engaged in the business of producing, distributing or servicing energy related products, including oil and gas exploration and production, refining, oil services and pipelines.The Index is a subset of the S&P SmallCap 600 Index, which is a float-adjusted, market-capitalization-weighted index reflecting the US small-cap market.
The Fund and the Index are rebalanced and reconstituted quarterly.Effective at the close of markets on July 14, 2023, the Fund will effect a “1 for 5” reverse split of its issued and outstanding shares. The Fund’s CUSIP also changed from 46138E164 to 46138G474. Please see the prospectus for more information.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the PSCE straddle is the cleanest expression of that view. Our scanner prices every PSCE 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 PSCE straddle into a catalyst or short a PSCE straddle to harvest decay, the options straddle setups that matter are all in one place.
