PBE Iron Condor Strategy
PBE (Invesco Biotechnology & Genome ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco Biotechnology & Genome ETF (Fund) is based on the Dynamic Biotech & Genome Intellidex 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 provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. The Index is comprised of securities of 30 US biotechnology and genome companies. These are companies that are principally engaged in the research, development, manufacture and marketing and distribution of various biotechnological products, services and processes and companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research. The Fund and the Index are rebalanced and reconstituted quarterly in February, May, August and November.
PBE (Invesco Biotechnology & Genome ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $247.8M, a beta of 0.81 versus the broader market, a 52-week range of 59.75-85.73, average daily share volume of 7K, a public-listing history dating back to 2005. These structural characteristics shape how PBE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.81 places PBE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PBE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PBE?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
Current PBE snapshot
As of May 15, 2026, spot at $81.02, ATM IV 24.00%, IV rank 31.83%, expected move 6.88%. The iron condor on PBE below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this iron condor structure on PBE specifically: PBE IV at 24.00% is mid-range versus its 1-year history, so the credit collected on a PBE iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 6.88% (roughly $5.57 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PBE expiries trade a higher absolute premium for lower per-day decay. Position sizing on PBE should anchor to the underlying notional of $81.02 per share and to the trader's directional view on PBE etf.
PBE iron condor setup
The PBE iron condor below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PBE near $81.02, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PBE chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 PBE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $85.00 | $0.94 |
| Buy 1 | Call | $90.00 | $0.18 |
| Sell 1 | Put | $77.00 | $0.83 |
| Buy 1 | Put | $73.00 | $0.22 |
PBE iron condor risk and reward
- Net Premium / Debit
- +$137.00
- Max Profit (per contract)
- $137.00
- Max Loss (per contract)
- -$363.00
- Breakeven(s)
- $75.63, $86.37
- Risk / Reward Ratio
- 0.377
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
PBE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PBE. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$263.00 |
| $17.92 | -77.9% | -$263.00 |
| $35.84 | -55.8% | -$263.00 |
| $53.75 | -33.7% | -$263.00 |
| $71.66 | -11.6% | -$263.00 |
| $89.57 | +10.6% | -$320.43 |
| $107.49 | +32.7% | -$363.00 |
| $125.40 | +54.8% | -$363.00 |
| $143.31 | +76.9% | -$363.00 |
| $161.23 | +99.0% | -$363.00 |
When traders use iron condor on PBE
Iron condors on PBE are a delta-neutral premium-collection structure that profits if PBE etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PBE thesis for this iron condor
The market-implied 1-standard-deviation range for PBE extends from approximately $75.45 on the downside to $86.59 on the upside. A PBE iron condor is a delta-neutral premium-collection structure that pays off when PBE stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. Current PBE IV rank near 31.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on PBE should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PBE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PBE-specific events.
PBE iron condor positions are structurally neutral / range-bound; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. PBE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PBE alongside the broader basket even when PBE-specific fundamentals are unchanged. Short-premium structures like a iron condor on PBE carry tail risk when realized volatility exceeds the implied move; review historical PBE earnings reactions and macro stress periods before sizing. Always rebuild the position from current PBE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PBE?
- A iron condor on PBE is the iron condor strategy applied to PBE (etf). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. With PBE etf trading near $81.02, the strikes shown on this page are snapped to the nearest listed PBE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PBE iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the PBE iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 24.00%), the computed maximum profit is $137.00 per contract and the computed maximum loss is -$363.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PBE iron condor?
- The breakeven for the PBE iron condor priced on this page is roughly $75.63 and $86.37 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current PBE market-implied 1-standard-deviation expected move is approximately 6.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a iron condor on PBE?
- Iron condors on PBE are a delta-neutral premium-collection structure that profits if PBE etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PBE implied volatility affect this iron condor?
- PBE ATM IV is at 24.00% with IV rank near 31.83%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.