Trading a PSCH straddle lets you take a pure volatility position on Invesco S&P SmallCap Health Care ETF without committing to a direction. Invesco S&P SmallCap Health Care 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 PSCH straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on PSCH 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 Health Care 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 PSCH straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Invesco S&P SmallCap Health Care ETF (Fund) is based on the S&P SmallCap 600 Capped Health Care Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to measure the overall performance of common stocks in the health care sector. Included are healthcare companies principally engaged in the business of providing healthcare-related products, facilities and services, including biotechnology, pharmaceuticals, medical technology and supplies.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 “3 for 1” forward split of its issued and outstanding shares. Please see the prospectus for more information.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the PSCH straddle is the cleanest expression of that view. Our scanner prices every PSCH 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 PSCH straddle into a catalyst or short a PSCH straddle to harvest decay, the options straddle setups that matter are all in one place.
