Trading a PXE straddle lets you take a pure volatility position on Invesco Energy Exploration & Production ETF without committing to a direction. Invesco Energy Exploration & Production 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 PXE straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on PXE 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 Energy Exploration & Production 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 PXE straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Invesco Energy Exploration & Production ETF (Fund) is based on the Dynamic Energy Exploration & Production Intellidex Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of securities of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy. These companies are engaged principally in exploration, extraction and production of crude oil and natural gas from land-based or offshore wells.
These companies include petroleum refineries that process the crude oil into finished products, such as gasoline and automotive lubricants, and companies involved in gathering and processing natural gas, and manufacturing natural gas liquid. The Fund and Index are rebalanced and reconstituted quarterly in February, May, August and November.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the PXE straddle is the cleanest expression of that view. Our scanner prices every PXE 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 PXE straddle into a catalyst or short a PXE straddle to harvest decay, the options straddle setups that matter are all in one place.
