Invesco Pharmaceuticals ETF (PJP) Covered Calls
The Invesco DWA Healthcare Momentum ETF is a sector-specific investment fund that tracks the Dorsey Wright Healthcare Technical Leaders Index. The fund utilizes a proprietary relative strength methodology to select healthcare companies that exhibit strong positive price momentum. It provides targeted exposure to the U.S. healthcare sector with a focus on outperforming securities.
You can sell covered calls on Invesco Pharmaceuticals ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for PJP (prices last updated Fri 4:16 PM ET):
| Invesco Pharmaceuticals ETF (PJP) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 100.20 | -1.31 | 99.81 | 101.04 | 11K | - | 1.1 |
| Covered Calls For Invesco Pharmaceuticals ETF (PJP) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 100 | 0.20 | 100.84 | -0.8% | -10.1% | |
| May 15 | 100 | 1.80 | 99.24 | 0.8% | 5.1% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
Want to make money with covered calls? Sign Up For A Free Trial
The Invesco DWA Healthcare Momentum ETF (PJP) functions as a tactical investment vehicle that differentiates itself from standard market-cap-weighted healthcare ETFs. Instead of holding the largest healthcare firms, PJP employs a momentum-based strategy. By analyzing relative strength—a technical indicator that compares the price performance of a security against a broad market benchmark—the fund seeks to capture stocks that are demonstrating the strongest price trends within the healthcare industry.
The portfolio is dynamic, with constituents often shifting based on technical signals rather than fundamental valuation metrics. This rules-based approach allows the fund to maintain exposure to high-growth segments such as biotechnology, medical devices, and pharmaceuticals, while systematically rotating out of names that show technical weakness. It serves as a tool for investors looking to gain alpha-seeking exposure to the healthcare sector.
Competitive Landscape
PJP operates in a crowded healthcare ETF space, competing with passive, market-cap-weighted giants and other factor-based funds. Key optionable peers include the Health Care Select Sector SPDR Fund, which is the most liquid and widely held broad healthcare ETF, and the iShares Global Healthcare ETF, which provides broader, international healthcare coverage. Another notable competitor is the iShares Biotechnology ETF, which captures the high-volatility segment of the sector.
Strategic Outlook and Innovation
The strategy is built on the premise that price momentum can serve as a proxy for institutional accumulation and sector leadership. By emphasizing relative strength, the fund attempts to keep investors positioned in the "winning" stocks of the healthcare industry. The strategic outlook for PJP is inherently tied to the performance of the healthcare sector as a whole, specifically its ability to maintain leadership trends in the broader equity market.
Innovation lies in the fund’s technical, non-discretionary methodology, which removes human emotion from sector-specific stock selection. As the healthcare landscape remains sensitive to regulatory, demographic, and technological shifts, this momentum-driven approach provides a disciplined, data-backed way for investors to stay ahead of changing sentiment within the medical and pharmaceutical industries.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | SPY covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | QQQ covered calls | 2. | CMPX covered calls | |
| 3. | NVDA covered calls | 8. | HYG covered calls | 3. | ONDS covered calls | |
| 4. | KWEB covered calls | 9. | EWZ covered calls | 4. | AAOI covered calls | |
| 5. | GLD covered calls | 10. | XLE covered calls | 5. | IBM covered calls | |
Want more examples? PIZ Covered Calls | PJT Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
