AVDV Collar Strategy
AVDV (Avantis International Small Cap Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Invests in a broad set of non-U.S. developed small-cap companies and is designed to increase expected returns by focusing on firms believed to be trading at low valuations with higher profitability ratios.Pursues the benefits associated with indexing (diversification, low turnover, transparency of exposures), but with the ability to add value by making investment decisions using information in current prices.Efficient portfolio management and trading process that is designed to enhance returns while seeking to reduce unnecessary risks and costs for investors.Built to fit seamlessly into an investor's asset allocation.
AVDV (Avantis International Small Cap Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $19.75B, a beta of 0.98 versus the broader market, a 52-week range of 74.3-110.469, average daily share volume of 823K, a public-listing history dating back to 2019. These structural characteristics shape how AVDV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places AVDV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVDV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AVDV?
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 AVDV snapshot
As of May 15, 2026, spot at $107.84, ATM IV 19.30%, IV rank 16.62%, expected move 5.53%. The collar on AVDV 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 AVDV specifically: IV regime affects collar pricing on both sides; compressed AVDV IV at 19.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.53% (roughly $5.97 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 AVDV expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVDV should anchor to the underlying notional of $107.84 per share and to the trader's directional view on AVDV etf.
AVDV collar setup
The AVDV 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 AVDV near $107.84, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVDV 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 AVDV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $107.84 | long |
| Sell 1 | Call | $115.00 | $0.60 |
| Buy 1 | Put | $100.00 | $0.57 |
AVDV collar risk and reward
- Net Premium / Debit
- -$10,781.00
- Max Profit (per contract)
- $719.00
- Max Loss (per contract)
- -$781.00
- Breakeven(s)
- $107.81
- Risk / Reward Ratio
- 0.921
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.
AVDV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AVDV. 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% | -$781.00 |
| $23.85 | -77.9% | -$781.00 |
| $47.70 | -55.8% | -$781.00 |
| $71.54 | -33.7% | -$781.00 |
| $95.38 | -11.6% | -$781.00 |
| $119.22 | +10.6% | +$719.00 |
| $143.07 | +32.7% | +$719.00 |
| $166.91 | +54.8% | +$719.00 |
| $190.75 | +76.9% | +$719.00 |
| $214.60 | +99.0% | +$719.00 |
When traders use collar on AVDV
Collars on AVDV hedge an existing long AVDV 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.
AVDV thesis for this collar
The market-implied 1-standard-deviation range for AVDV extends from approximately $101.87 on the downside to $113.81 on the upside. A AVDV collar hedges an existing long AVDV 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 AVDV IV rank near 16.62% 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 AVDV at 19.30%. As a Financial Services name, AVDV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVDV-specific events.
AVDV 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. AVDV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVDV alongside the broader basket even when AVDV-specific fundamentals are unchanged. Always rebuild the position from current AVDV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AVDV?
- A collar on AVDV is the collar strategy applied to AVDV (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 AVDV etf trading near $107.84, the strikes shown on this page are snapped to the nearest listed AVDV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVDV 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 AVDV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 19.30%), the computed maximum profit is $719.00 per contract and the computed maximum loss is -$781.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVDV collar?
- The breakeven for the AVDV collar priced on this page is roughly $107.81 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 AVDV market-implied 1-standard-deviation expected move is approximately 5.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AVDV?
- Collars on AVDV hedge an existing long AVDV 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 AVDV implied volatility affect this collar?
- AVDV ATM IV is at 19.30% with IV rank near 16.62%, 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.