Invesco Variable Rate Preferred ETF (VRP) Straddle

Trading a VRP straddle lets you take a pure volatility position on Invesco Variable Rate Preferred ETF without committing to a direction. Invesco Variable Rate Preferred 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 VRP straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on VRP 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 Variable Rate Preferred 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 VRP straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

The Invesco Variable Rate Preferred ETF (Fund) is based on the ICE Variable Rate Preferred & Hybrid Securities Index (Index). The Fund will generally invest at least 90% of its total assets in floating and variable rate investment grade and below investment grade U.S. dollar denominated preferred stock and hybrid debt publicly issued by corporations in the U.S. domestic market. The Index is designed to track the performance of floating and variable rate investment grade and below investment grade U.S. dollar preferred stock, as well as certain types of hybrid securities that determined by the Index Provider, comparable to preferred stocks, that are issued by corporations in the U.S.

market. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a "sampling" methodology to seek to achieve its investment objective. The Fund and the Index are rebalanced monthly. As of 08/31/2025 the Fund had an overall rating of 5 stars out of 66 funds and was rated 5 stars out of 66 funds, 5 stars out of 58 funds and 5 stars out of 38 funds for the 3-, 5- and 10- year periods, respectively. Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. ©2025 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.

Earnings, product cycles, macro prints — any time volatility itself is the trade, the VRP straddle is the cleanest expression of that view. Our scanner prices every VRP 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 VRP straddle into a catalyst or short a VRP straddle to harvest decay, the options straddle setups that matter are all in one place.