Trading a RPV straddle lets you take a pure volatility position on Invesco S&P 500 Pure Value ETF without committing to a direction. Invesco S&P 500 Pure Value 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 RPV straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on RPV 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 500 Pure Value 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 RPV straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
The Invesco S&P 500 Pure Value ETF (Fund) is based on the S&P 500 Pure Value Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index measures the performance of securities that exhibit strong value characteristics in the S&P 500 Index. First, each security in the S&P 500 is assigned two “style scores” – one for value and one for growth – based on the characteristics of the issuer. The “value score” is measured using three factors: book-value-to-price ratio, earnings-to-price ratio, and sales-to-price ratio. The “growth score” is measured using three other factors: three-year sales per share growth, the three-year ratio of earnings per share change to price per share, and momentum (the 12-month percentage change in price).
The ratio between the growth score and the value score is used to rank each stock as either deep value, blend or deep growth. Only the deep value stocks are selected and are factor weighted such that securities demonstrating the strongest value characteristics receive proportionally greater weights. The Fund and the Index are rebalanced annually.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the RPV straddle is the cleanest expression of that view. Our scanner prices every RPV 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 RPV straddle into a catalyst or short a RPV straddle to harvest decay, the options straddle setups that matter are all in one place.
