AGZ Collar Strategy
AGZ (iShares Agency Bond ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on AMEX.
The iShares Agency Bond ETF seeks to track the investment results of an index composed of agency securities that are publicly issued by U.S. government agencies, and corporate and non-U.S. debt guaranteed by the U.S. government.
AGZ (iShares Agency Bond ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $551.6M, a beta of 0.46 versus the broader market, a 52-week range of 108.19-111, average daily share volume of 22K, a public-listing history dating back to 2008. These structural characteristics shape how AGZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.46 indicates AGZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AGZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AGZ?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current AGZ snapshot
As of May 15, 2026, spot at $108.54, ATM IV 11.40%, IV rank 10.05%, expected move 3.27%. The collar on AGZ 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 collar structure on AGZ specifically: IV regime affects collar pricing on both sides; compressed AGZ IV at 11.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.27% (roughly $3.55 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 AGZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGZ should anchor to the underlying notional of $108.54 per share and to the trader's directional view on AGZ etf.
AGZ collar setup
The AGZ collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AGZ near $108.54, the first option leg uses a $113.97 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGZ 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 AGZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $108.54 | long |
| Sell 1 | Call | $113.97 | N/A |
| Buy 1 | Put | $103.11 | N/A |
AGZ collar 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 roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
AGZ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AGZ. 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 collar on AGZ
Collars on AGZ hedge an existing long AGZ etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
AGZ thesis for this collar
The market-implied 1-standard-deviation range for AGZ extends from approximately $104.99 on the downside to $112.09 on the upside. A AGZ collar hedges an existing long AGZ position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current AGZ IV rank near 10.05% 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 AGZ at 11.40%. As a Financial Services name, AGZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGZ-specific events.
AGZ collar positions are structurally neutral (protective); 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. AGZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGZ alongside the broader basket even when AGZ-specific fundamentals are unchanged. Always rebuild the position from current AGZ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AGZ?
- A collar on AGZ is the collar strategy applied to AGZ (etf). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With AGZ etf trading near $108.54, the strikes shown on this page are snapped to the nearest listed AGZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGZ collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the AGZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 11.40%), 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 AGZ collar?
- The breakeven for the AGZ collar 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 AGZ market-implied 1-standard-deviation expected move is approximately 3.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AGZ?
- Collars on AGZ hedge an existing long AGZ etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current AGZ implied volatility affect this collar?
- AGZ ATM IV is at 11.40% with IV rank near 10.05%, 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.