Trading a PXJ straddle lets you take a pure volatility position on Invesco Oil & Gas Services ETF without committing to a direction. Invesco Oil & Gas Services 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 PXJ straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on PXJ 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 Oil & Gas Services 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 PXJ straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Invesco Oil & Gas Services ETF (Fund) is based on the Dynamic Oil Services Intellidex Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks 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 stocks of 30 U.S. companies that assist in the production, processing and distribution of oil and gas. The Index may include companies that are engaged in the drilling of oil and gas wells; manufacturing oil and gas field machinery and equipment; or providing services to the oil and gas industry, such as well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing.
The Fund and the 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 PXJ straddle is the cleanest expression of that view. Our scanner prices every PXJ 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 PXJ straddle into a catalyst or short a PXJ straddle to harvest decay, the options straddle setups that matter are all in one place.
