PDP Iron Condor Strategy
PDP (Invesco Dorsey Wright Momentum ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Invesco Exchange-Traded Fund Trust - Invesco Dorsey Wright Momentum ETF is an exchange traded fund launched and managed by Invesco Capital Management LLC. It invests in public equity markets of the United States. The fund invests in stocks of companies operating across diversified sectors. The fund invests in momentum stocks of large-cap companies. It seeks to track the performance of the Dorsey Wright Technical Leaders Index, by using full replication technique. Invesco Exchange-Traded Fund Trust - Invesco Dorsey Wright Momentum ETF was formed on March 1, 2007 and is domiciled in the United States.
PDP (Invesco Dorsey Wright Momentum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.57B, a beta of 1.17 versus the broader market, a 52-week range of 106.53-153.23, average daily share volume of 29K, a public-listing history dating back to 2007. These structural characteristics shape how PDP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.17 places PDP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PDP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PDP?
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.
PDP snapshot
As of August 14, 2026, spot at $142.34, ATM IV 28.20%, IV rank 23.68%, expected move 8.08%. The iron condor on PDP below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on PDP specifically: PDP IV at 28.20% is on the cheap side of its 1-year range, which means a premium-selling PDP iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.08% (roughly $11.51 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PDP expiries trade a higher absolute premium for lower per-day decay. Position sizing on PDP should anchor to the underlying notional of $142.34 per share and to the trader's directional view on PDP etf.
PDP iron condor setup
The PDP iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PDP at $142.34 on that close, the first option leg uses a $149.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PDP chain at a 35-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 PDP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $149.00 | $2.60 |
| Buy 1 | Call | $155.00 | $0.74 |
| Sell 1 | Put | $135.00 | $3.10 |
| Buy 1 | Put | $130.00 | $2.30 |
PDP iron condor risk and reward
- Net Premium / Debit
- +$266.00
- Max Profit (per contract)
- $266.00
- Max Loss (per contract)
- -$334.00
- Breakeven(s)
- $132.34, $151.66
- Risk / Reward Ratio
- 0.796
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.
PDP iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PDP. 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% | -$234.00 |
| $31.48 | -77.9% | -$234.00 |
| $62.95 | -55.8% | -$234.00 |
| $94.42 | -33.7% | -$234.00 |
| $125.89 | -11.6% | -$234.00 |
| $157.37 | +10.6% | -$334.00 |
| $188.84 | +32.7% | -$334.00 |
| $220.31 | +54.8% | -$334.00 |
| $251.78 | +76.9% | -$334.00 |
| $283.25 | +99.0% | -$334.00 |
When traders use iron condor on PDP
Iron condors on PDP are a delta-neutral premium-collection structure that profits if PDP etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PDP thesis for this iron condor
The market-implied 1-standard-deviation range for PDP extends from approximately $130.83 on the downside to $153.85 on the upside. A PDP iron condor is a delta-neutral premium-collection structure that pays off when PDP 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 PDP IV rank near 23.68% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on PDP at 28.20%. As a Financial Services name, PDP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PDP-specific events.
PDP 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. PDP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PDP alongside the broader basket even when PDP-specific fundamentals are unchanged. Short-premium structures like a iron condor on PDP carry tail risk when realized volatility exceeds the implied move; review historical PDP earnings reactions and macro stress periods before sizing. Always rebuild the position from current PDP chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PDP?
- A iron condor on PDP is the iron condor strategy applied to PDP (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 PDP etf at $142.34 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PDP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PDP 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 PDP iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.20%), the computed maximum profit is $266.00 per contract and the computed maximum loss is -$334.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PDP iron condor?
- The breakeven for the PDP iron condor priced on this page is roughly $132.34 and $151.66 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PDP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.08%; 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 PDP?
- Iron condors on PDP are a delta-neutral premium-collection structure that profits if PDP etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PDP implied volatility affect this iron condor?
- PDP ATM IV is at 28.20% with IV rank near 23.68%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.