AVIE Collar Strategy
AVIE (Avantis Inflation Focused Equity ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The strategy Invests primarily in a diverse group of U.S. companies in market sectors and industry groups that historically have had or that portfolio managers expect to have long-term correlation with inflation.Within the eligible universe of securities, the fund seeks to increase expected returns* by emphasizing companies trading at attractive price multiples with stronger profitability characteristics.Efficient portfolio management and trading process that are designed to enhance returns while seeking to reduce unnecessary risks and transaction costs.The strategy is built to fit seamlessly into an investor's asset allocation, providing a tool for investors seeking an inflation-focused strategy with an equity driver of returns.
AVIE (Avantis Inflation Focused Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $6.9M, a beta of 0.38 versus the broader market, a 52-week range of 59.213-74.79, average daily share volume of 1K, a public-listing history dating back to 2022. These structural characteristics shape how AVIE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.38 indicates AVIE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AVIE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AVIE?
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 AVIE snapshot
As of May 15, 2026, spot at $73.98, ATM IV 17.90%, IV rank 3.79%, expected move 5.13%. The collar on AVIE 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 AVIE specifically: IV regime affects collar pricing on both sides; compressed AVIE IV at 17.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.13% (roughly $3.80 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 AVIE expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVIE should anchor to the underlying notional of $73.98 per share and to the trader's directional view on AVIE etf.
AVIE collar setup
The AVIE 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 AVIE near $73.98, the first option leg uses a $77.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVIE 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 AVIE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $73.98 | long |
| Sell 1 | Call | $77.68 | N/A |
| Buy 1 | Put | $70.28 | N/A |
AVIE 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.
AVIE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AVIE. 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 AVIE
Collars on AVIE hedge an existing long AVIE 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.
AVIE thesis for this collar
The market-implied 1-standard-deviation range for AVIE extends from approximately $70.18 on the downside to $77.78 on the upside. A AVIE collar hedges an existing long AVIE 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 AVIE IV rank near 3.79% 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 AVIE at 17.90%. As a Financial Services name, AVIE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVIE-specific events.
AVIE 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. AVIE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVIE alongside the broader basket even when AVIE-specific fundamentals are unchanged. Always rebuild the position from current AVIE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AVIE?
- A collar on AVIE is the collar strategy applied to AVIE (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 AVIE etf trading near $73.98, the strikes shown on this page are snapped to the nearest listed AVIE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVIE 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 AVIE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 17.90%), 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 AVIE collar?
- The breakeven for the AVIE 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 AVIE market-implied 1-standard-deviation expected move is approximately 5.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AVIE?
- Collars on AVIE hedge an existing long AVIE 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 AVIE implied volatility affect this collar?
- AVIE ATM IV is at 17.90% with IV rank near 3.79%, 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.