PSCC Butterfly Strategy
PSCC (Invesco S&P SmallCap Consumer Staples ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Invesco Exchange-Traded Fund Trust II - Invesco S&P SmallCap Consumer Staples 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. It invests in stocks of companies operating across consumer staples sectors. The fund invests in growth and value stocks of small-cap companies. The fund seeks to track the performance of the S&P SmallCap 600 Capped Consumer Staples Index, by using full replication technique. Invesco Exchange-Traded Fund Trust II - Invesco S&P SmallCap Consumer Staples ETF was formed on April 7, 2010 and is domiciled in the United States.
PSCC (Invesco S&P SmallCap Consumer Staples ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $33.1M, a beta of 0.82 versus the broader market, a 52-week range of 30.6-36.65, average daily share volume of 7K, a public-listing history dating back to 2010. These structural characteristics shape how PSCC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places PSCC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PSCC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on PSCC?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
Current PSCC snapshot
As of June 30, 2026, spot at $35.28, ATM IV 38.20%, IV rank 20.40%, expected move 10.95%. The butterfly on PSCC 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 17-day expiry.
Why this butterfly structure on PSCC specifically: PSCC IV at 38.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a PSCC butterfly, with a market-implied 1-standard-deviation move of approximately 10.95% (roughly $3.86 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PSCC expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSCC should anchor to the underlying notional of $35.28 per share and to the trader's directional view on PSCC etf.
PSCC butterfly setup
The PSCC butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PSCC near $35.28, the first option leg uses a $33.52 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSCC chain at a 17-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 PSCC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $33.52 | N/A |
| Sell 2 | Call | $35.28 | N/A |
| Buy 1 | Call | $37.04 | N/A |
PSCC butterfly 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 wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
PSCC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PSCC. 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 butterfly on PSCC
Butterflies on PSCC are pinning bets - traders use them when they expect PSCC to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
PSCC thesis for this butterfly
The market-implied 1-standard-deviation range for PSCC extends from approximately $31.42 on the downside to $39.14 on the upside. A PSCC long call butterfly is a pinning play: it pays maximum at the middle strike if PSCC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PSCC IV rank near 20.40% 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 PSCC at 38.20%. As a Financial Services name, PSCC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSCC-specific events.
PSCC butterfly positions are structurally neutral / pin (limited-risk, limited-reward); 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. PSCC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PSCC alongside the broader basket even when PSCC-specific fundamentals are unchanged. Always rebuild the position from current PSCC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PSCC?
- A butterfly on PSCC is the butterfly strategy applied to PSCC (etf). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With PSCC etf trading near $35.28, the strikes shown on this page are snapped to the nearest listed PSCC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PSCC butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the PSCC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.20%), 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 PSCC butterfly?
- The breakeven for the PSCC butterfly priced on this page is no defined breakeven on the modeled curve 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 PSCC market-implied 1-standard-deviation expected move is approximately 10.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PSCC?
- Butterflies on PSCC are pinning bets - traders use them when they expect PSCC to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current PSCC implied volatility affect this butterfly?
- PSCC ATM IV is at 38.20% with IV rank near 20.40%, 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.