AVGE Collar Strategy
AVGE (Avantis All Equity Markets ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Fund seeks long-term capital appreciation. The Fund is a fund of funds, meaning that it seeks to achieve its objective by investing in other Avantis ETFs. Under normal market conditions, the fund will invest at least 80% of its assets in equity ETFs with a target weight of 70% and target range of 63% to 77%.
AVGE (Avantis All Equity Markets ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.08B, a beta of 0.94 versus the broader market, a 52-week range of 79.93-102.65, average daily share volume of 70K, a public-listing history dating back to 2022. These structural characteristics shape how AVGE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places AVGE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVGE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AVGE?
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.
AVGE snapshot
As of August 14, 2026, spot at $102.69, ATM IV 10.90%, IV rank 1.29%, expected move 3.12%. The collar on AVGE below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on AVGE specifically: IV regime affects collar pricing on both sides; compressed AVGE IV at 10.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.12% (roughly $3.21 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVGE expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVGE should anchor to the underlying notional of $102.69 per share and to the trader's directional view on AVGE etf.
AVGE collar setup
The AVGE collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AVGE at $102.69 on that close, the first option leg uses a $108.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVGE chain at a 35-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 AVGE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $102.69 | long |
| Sell 1 | Call | $108.00 | $0.10 |
| Buy 1 | Put | $98.00 | $0.16 |
AVGE collar risk and reward
- Net Premium / Debit
- -$10,275.00
- Max Profit (per contract)
- $525.00
- Max Loss (per contract)
- -$475.00
- Breakeven(s)
- $102.75
- Risk / Reward Ratio
- 1.105
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.
AVGE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AVGE. 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% | -$475.00 |
| $22.71 | -77.9% | -$475.00 |
| $45.42 | -55.8% | -$475.00 |
| $68.12 | -33.7% | -$475.00 |
| $90.83 | -11.6% | -$475.00 |
| $113.53 | +10.6% | +$525.00 |
| $136.24 | +32.7% | +$525.00 |
| $158.94 | +54.8% | +$525.00 |
| $181.64 | +76.9% | +$525.00 |
| $204.35 | +99.0% | +$525.00 |
When traders use collar on AVGE
Collars on AVGE hedge an existing long AVGE 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.
AVGE thesis for this collar
The market-implied 1-standard-deviation range for AVGE extends from approximately $99.48 on the downside to $105.90 on the upside. A AVGE collar hedges an existing long AVGE 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 AVGE IV rank near 1.29% 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 AVGE at 10.90%. As a Financial Services name, AVGE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVGE-specific events.
AVGE 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. AVGE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVGE alongside the broader basket even when AVGE-specific fundamentals are unchanged. Always rebuild the position from current AVGE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AVGE?
- A collar on AVGE is the collar strategy applied to AVGE (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 AVGE etf at $102.69 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AVGE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AVGE 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 AVGE collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 10.90%), the computed maximum profit is $525.00 per contract and the computed maximum loss is -$475.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVGE collar?
- The breakeven for the AVGE collar priced on this page is roughly $102.75 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AVGE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AVGE?
- Collars on AVGE hedge an existing long AVGE 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 AVGE implied volatility affect this collar?
- AVGE ATM IV is at 10.90% with IV rank near 1.29%, 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.