How are PSCT straddle max profit and max loss calculated?

Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the PSCT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$715.98 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSCT straddle?

The breakeven for the PSCT straddle priced on this page is roughly $81.79 and $96.21 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 PSCT market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSCT implied volatility affect this straddle?

PSCT ATM IV is at 42.90% with IV rank near 21.91%, 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.

PSCT Straddle Strategy

PSCT (Invesco S&P SmallCap Information Technology ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.

The Invesco S&P SmallCap Information Technology ETF (referred to as the "Fund") tracks the performance of the S&P SmallCap 600 Capped Information Technology Index (the "Index"). Typically, the Fund allocates a minimum of 90% of its total investments to the specific securities included in this Index. The Index itself is designed to measure the collective performance of American companies operating in the information technology sector. These companies primarily specialize in offering IT-related products and services, such as computer hardware, software, internet services, electronics, semiconductors, and various communication technologies. Notably, this specialized Index forms a segment of the broader S&P SmallCap 600 Index, which utilizes a float-adjusted, market-capitalization-weighted methodology to represent the U.S. small-capitalization equity market. Both the Fund and its benchmark Index undergo rebalancing and reconstitution on a quarterly schedule.

PSCT (Invesco S&P SmallCap Information Technology ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $450.6M, a beta of 1.70 versus the broader market, a 52-week range of 43.83-89.42, average daily share volume of 39K, a public-listing history dating back to 2010. These structural characteristics shape how PSCT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.70 indicates PSCT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PSCT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on PSCT?

A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.

Current PSCT snapshot

As of June 29, 2026, spot at $88.60, ATM IV 42.90%, IV rank 21.91%, expected move 12.30%. The straddle on PSCT 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 18-day expiry.

Why this straddle structure on PSCT specifically: PSCT IV at 42.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a PSCT straddle, with a market-implied 1-standard-deviation move of approximately 12.30% (roughly $10.90 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PSCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSCT should anchor to the underlying notional of $88.60 per share and to the trader's directional view on PSCT etf.

PSCT straddle setup

The PSCT straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PSCT near $88.60, the first option leg uses a $89.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSCT chain at a 18-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 PSCT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$89.00	$2.81
Buy 1	Put	$89.00	$4.40

PSCT straddle risk and reward

Net Premium / Debit: -$721.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$715.98
Breakeven(s): $81.79, $96.21
Risk / Reward Ratio: Unbounded

Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.

PSCT straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on PSCT. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$8,178.00
$19.60	-77.9%	+$6,219.12
$39.19	-55.8%	+$4,260.23
$58.78	-33.7%	+$2,301.35
$78.37	-11.6%	+$342.46
$97.95	+10.6%	+$174.42
$117.54	+32.7%	+$2,133.31
$137.13	+54.8%	+$4,092.19
$156.72	+76.9%	+$6,051.08
$176.31	+99.0%	+$8,009.96

When traders use straddle on PSCT

Straddles on PSCT are pure-volatility plays that profit from large moves in either direction; traders typically buy PSCT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.

PSCT thesis for this straddle

The market-implied 1-standard-deviation range for PSCT extends from approximately $77.70 on the downside to $99.50 on the upside. A PSCT long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current PSCT IV rank near 21.91% 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 PSCT at 42.90%. As a Financial Services name, PSCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSCT-specific events.

PSCT straddle positions are structurally neutral / high-volatility (long premium); 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. PSCT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PSCT alongside the broader basket even when PSCT-specific fundamentals are unchanged. Always rebuild the position from current PSCT chain quotes before placing a trade.

Frequently asked questions

What is a straddle on PSCT?: A straddle on PSCT is the straddle strategy applied to PSCT (etf). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With PSCT etf trading near $88.60, the strikes shown on this page are snapped to the nearest listed PSCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PSCT straddle max profit and max loss calculated?: Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the PSCT straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$715.98 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSCT straddle?: The breakeven for the PSCT straddle priced on this page is roughly $81.79 and $96.21 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 PSCT market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on PSCT?: Straddles on PSCT are pure-volatility plays that profit from large moves in either direction; traders typically buy PSCT straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
How does current PSCT implied volatility affect this straddle?: PSCT ATM IV is at 42.90% with IV rank near 21.91%, 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.