PSP Iron Condor Strategy
PSP (Invesco Global Listed Private Equity ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The Invesco Global Listed Private Equity ETF (Fund) is based on the Red Rocks Global Listed Private Equity Index (Index). The Fund will normally invest at least 90% of its total assets in securities, which may include American depository receipts (ADRs) and global depository receipts (GDRs), that comprise the Index. The Index includes securities, ADRs and GDRs of 40 to 75 private equity companies, including business development companies (BDCs), and other vehicles whose principal business is to invest in, lend capital to or provide services to privately held companies (collectively, listed private equity companies). The Fund and the Index are rebalanced and reconstituted quarterly. Master limited partnerships (commonly known as MLPs) are not eligible for inclusion in the Underlying Index. As of 08/31/2025 the Fund had an overall rating of 4 stars out of 167 funds and was rated 5 stars out of 167 funds, 4 stars out of 146 funds and 3 stars out of 88 funds for the 3-, 5- and 10- year periods, respectively.
PSP (Invesco Global Listed Private Equity ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $342.1M, a beta of 1.22 versus the broader market, a 52-week range of 54.18-72.97, average daily share volume of 66K, a public-listing history dating back to 2006. These structural characteristics shape how PSP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places PSP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PSP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PSP?
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.
Current PSP snapshot
As of May 15, 2026, spot at $59.67, ATM IV 24.70%, IV rank 30.30%, expected move 7.08%. The iron condor on PSP 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 iron condor structure on PSP specifically: PSP IV at 24.70% is mid-range versus its 1-year history, so the credit collected on a PSP iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $4.23 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 PSP expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSP should anchor to the underlying notional of $59.67 per share and to the trader's directional view on PSP etf.
PSP iron condor setup
The PSP 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 PSP near $59.67, the first option leg uses a $63.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSP 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 PSP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $63.00 | $0.55 |
| Buy 1 | Call | $66.00 | $0.21 |
| Sell 1 | Put | $57.00 | $1.12 |
| Buy 1 | Put | $55.00 | $0.69 |
PSP iron condor risk and reward
- Net Premium / Debit
- +$77.00
- Max Profit (per contract)
- $77.00
- Max Loss (per contract)
- -$223.00
- Breakeven(s)
- $56.23, $63.77
- Risk / Reward Ratio
- 0.345
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.
PSP iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PSP. 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% | -$123.00 |
| $13.20 | -77.9% | -$123.00 |
| $26.39 | -55.8% | -$123.00 |
| $39.59 | -33.7% | -$123.00 |
| $52.78 | -11.5% | -$123.00 |
| $65.97 | +10.6% | -$220.13 |
| $79.16 | +32.7% | -$223.00 |
| $92.36 | +54.8% | -$223.00 |
| $105.55 | +76.9% | -$223.00 |
| $118.74 | +99.0% | -$223.00 |
When traders use iron condor on PSP
Iron condors on PSP are a delta-neutral premium-collection structure that profits if PSP etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PSP thesis for this iron condor
The market-implied 1-standard-deviation range for PSP extends from approximately $55.44 on the downside to $63.90 on the upside. A PSP iron condor is a delta-neutral premium-collection structure that pays off when PSP 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 PSP IV rank near 30.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on PSP should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PSP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSP-specific events.
PSP 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. PSP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PSP alongside the broader basket even when PSP-specific fundamentals are unchanged. Short-premium structures like a iron condor on PSP carry tail risk when realized volatility exceeds the implied move; review historical PSP earnings reactions and macro stress periods before sizing. Always rebuild the position from current PSP chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PSP?
- A iron condor on PSP is the iron condor strategy applied to PSP (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 PSP etf trading near $59.67, the strikes shown on this page are snapped to the nearest listed PSP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PSP 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 PSP iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $77.00 per contract and the computed maximum loss is -$223.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PSP iron condor?
- The breakeven for the PSP iron condor priced on this page is roughly $56.23 and $63.77 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 PSP market-implied 1-standard-deviation expected move is approximately 7.08%; 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 PSP?
- Iron condors on PSP are a delta-neutral premium-collection structure that profits if PSP etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PSP implied volatility affect this iron condor?
- PSP ATM IV is at 24.70% with IV rank near 30.30%, 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.