PEY Iron Condor Strategy
PEY (Invesco High Yield Equity Dividend Achievers ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Invesco Exchange-Traded Fund Trust - Invesco High Yield Equity Dividend Achievers ETF is an exchange traded fund launched and managed by Invesco Capital Management LLC. The fund invests in public equity markets of the United States. The fund invests in stocks of companies operating across diversified sectors. It invests in growth and value stocks of companies across diversified market capitalization. It invests in dividend paying stocks of companies. It seeks to track the performance of the NASDAQ US Dividend Achievers 50 Index, by using full replication technique.
PEY (Invesco High Yield Equity Dividend Achievers ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.16B, a beta of 0.65 versus the broader market, a 52-week range of 19.59-25.06, average daily share volume of 271K, a public-listing history dating back to 2004. These structural characteristics shape how PEY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates PEY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PEY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PEY?
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.
PEY snapshot
As of August 14, 2026, spot at $25.20, ATM IV 28.10%, IV rank 4.64%, expected move 8.06%. The iron condor on PEY below is built from the 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 PEY specifically: PEY IV at 28.10% is on the cheap side of its 1-year range, which means a premium-selling PEY iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.06% (roughly $2.03 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 PEY expiries trade a higher absolute premium for lower per-day decay. Position sizing on PEY should anchor to the underlying notional of $25.20 per share and to the trader's directional view on PEY etf.
PEY iron condor setup
The PEY 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 PEY at $25.20 on that close, the first option leg uses a $26.46 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PEY 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 PEY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $26.46 | N/A |
| Buy 1 | Call | $27.72 | N/A |
| Sell 1 | Put | $23.94 | N/A |
| Buy 1 | Put | $22.68 | N/A |
PEY iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
PEY iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PEY. 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.
When traders use iron condor on PEY
Iron condors on PEY are a delta-neutral premium-collection structure that profits if PEY etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PEY thesis for this iron condor
The market-implied 1-standard-deviation range for PEY extends from approximately $23.17 on the downside to $27.23 on the upside. A PEY iron condor is a delta-neutral premium-collection structure that pays off when PEY 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 PEY IV rank near 4.64% 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 PEY at 28.10%. As a Financial Services name, PEY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PEY-specific events.
PEY 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. PEY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PEY alongside the broader basket even when PEY-specific fundamentals are unchanged. Short-premium structures like a iron condor on PEY carry tail risk when realized volatility exceeds the implied move; review historical PEY earnings reactions and macro stress periods before sizing. Always rebuild the position from current PEY chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PEY?
- A iron condor on PEY is the iron condor strategy applied to PEY (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 PEY etf at $25.20 on the most recent close, the strikes shown on this page are snapped to the nearest listed PEY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PEY 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 PEY iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 28.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PEY iron condor?
- The breakeven for the PEY iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 PEY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.06%; 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 PEY?
- Iron condors on PEY are a delta-neutral premium-collection structure that profits if PEY etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PEY implied volatility affect this iron condor?
- PEY ATM IV is at 28.10% with IV rank near 4.64%, 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.