How are PSI 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 PSI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 53.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,921.48 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSI straddle?

The breakeven for the PSI straddle priced on this page is roughly $130.75 and $169.25 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 PSI market-implied 1-standard-deviation expected move is approximately 15.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSI implied volatility affect this straddle?

PSI ATM IV is at 53.50% with IV rank near 63.72%, 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.

PSI Straddle Strategy

PSI (Invesco Semiconductors ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Invesco Semiconductors ETF (Fund) is based on the Dynamic Semiconductor Intellidex Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks 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 common stocks of 30 US semiconductors companies. These are companies that are principally engaged in the manufacture of semiconductors. The Fund and the Index are rebalanced and reconstituted quarterly in February, May, August and November.

PSI (Invesco Semiconductors ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.37B, a beta of 2.21 versus the broader market, a 52-week range of 50.18-156.17, average daily share volume of 306K, a public-listing history dating back to 2005. These structural characteristics shape how PSI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.21 indicates PSI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PSI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on PSI?

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 PSI snapshot

As of May 15, 2026, spot at $149.21, ATM IV 53.50%, IV rank 63.72%, expected move 15.34%. The straddle on PSI 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 straddle structure on PSI specifically: PSI IV at 53.50% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 15.34% (roughly $22.89 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 PSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSI should anchor to the underlying notional of $149.21 per share and to the trader's directional view on PSI etf.

PSI straddle setup

The PSI 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 PSI near $149.21, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSI 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 PSI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$150.00	$9.55
Buy 1	Put	$150.00	$9.70

PSI straddle risk and reward

Net Premium / Debit: -$1,925.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$1,921.48
Breakeven(s): $130.75, $169.25
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.

PSI straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on PSI. 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%	+$13,074.00
$33.00	-77.9%	+$9,774.99
$65.99	-55.8%	+$6,475.99
$98.98	-33.7%	+$3,176.98
$131.97	-11.6%	-$122.02
$164.96	+10.6%	-$428.97
$197.95	+32.7%	+$2,870.03
$230.94	+54.8%	+$6,169.04
$263.93	+76.9%	+$9,468.04
$296.92	+99.0%	+$12,767.05

When traders use straddle on PSI

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

PSI thesis for this straddle

The market-implied 1-standard-deviation range for PSI extends from approximately $126.32 on the downside to $172.10 on the upside. A PSI 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 PSI IV rank near 63.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on PSI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSI-specific events.

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

Frequently asked questions

What is a straddle on PSI?: A straddle on PSI is the straddle strategy applied to PSI (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 PSI etf trading near $149.21, the strikes shown on this page are snapped to the nearest listed PSI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PSI 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 PSI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 53.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,921.48 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSI straddle?: The breakeven for the PSI straddle priced on this page is roughly $130.75 and $169.25 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 PSI market-implied 1-standard-deviation expected move is approximately 15.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on PSI?: Straddles on PSI are pure-volatility plays that profit from large moves in either direction; traders typically buy PSI 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 PSI implied volatility affect this straddle?: PSI ATM IV is at 53.50% with IV rank near 63.72%, 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.