How are AVLV 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 AVLV collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.60%), the computed maximum profit is $497.00 per contract and the computed maximum loss is -$503.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVLV collar?

The breakeven for the AVLV collar priced on this page is roughly $95.03 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 AVLV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVLV implied volatility affect this collar?

AVLV ATM IV is at 18.60% with IV rank near 1.56%, 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.

AVLV Collar Strategy

AVLV (Avantis U.S. Large Cap Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

American Century ETF Trust - Avantis U.S. Large Cap Value ETF is an exchange traded fund launched and managed by American Century Investment Management Inc. The fund invests in public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. The fund invests in value stocks of large cap companies, within the market capitalization range of the Russell 1000 Value Index. It seeks to benchmark the performance of its portfolio against the Russell 1000 and the Russell 1000 Value Index.

AVLV (Avantis U.S. Large Cap Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $13.45B, a beta of 0.86 versus the broader market, a 52-week range of 70.1-95.315, average daily share volume of 1.4M, a public-listing history dating back to 2021, approximately 15 full-time employees. These structural characteristics shape how AVLV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.86 places AVLV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVLV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on AVLV?

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.

AVLV snapshot

As of August 14, 2026, spot at $95.03, ATM IV 18.60%, IV rank 1.56%, expected move 5.33%. The collar on AVLV 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 AVLV specifically: IV regime affects collar pricing on both sides; compressed AVLV IV at 18.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.33% (roughly $5.07 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 AVLV expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVLV should anchor to the underlying notional of $95.03 per share and to the trader's directional view on AVLV etf.

AVLV collar setup

The AVLV 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 AVLV at $95.03 on that close, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVLV 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 AVLV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$95.03	long
Sell 1	Call	$100.00	$0.57
Buy 1	Put	$90.00	$0.57

AVLV collar risk and reward

Net Premium / Debit: -$9,503.00
Max Profit (per contract): $497.00
Max Loss (per contract): -$503.00
Breakeven(s): $95.03
Risk / Reward Ratio: 0.988

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.

AVLV collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AVLV. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$503.00
$21.02	-77.9%	-$503.00
$42.03	-55.8%	-$503.00
$63.04	-33.7%	-$503.00
$84.05	-11.6%	-$503.00
$105.06	+10.6%	+$497.00
$126.07	+32.7%	+$497.00
$147.08	+54.8%	+$497.00
$168.09	+76.9%	+$497.00
$189.10	+99.0%	+$497.00

When traders use collar on AVLV

Collars on AVLV hedge an existing long AVLV 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.

AVLV thesis for this collar

The market-implied 1-standard-deviation range for AVLV extends from approximately $89.96 on the downside to $100.10 on the upside. A AVLV collar hedges an existing long AVLV 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 AVLV IV rank near 1.56% 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 AVLV at 18.60%. As a Financial Services name, AVLV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVLV-specific events.

AVLV 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. AVLV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVLV alongside the broader basket even when AVLV-specific fundamentals are unchanged. Always rebuild the position from current AVLV chain quotes before placing a trade.

Frequently asked questions

What is a collar on AVLV?: A collar on AVLV is the collar strategy applied to AVLV (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 AVLV etf at $95.03 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AVLV chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AVLV 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 AVLV collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.60%), the computed maximum profit is $497.00 per contract and the computed maximum loss is -$503.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVLV collar?: The breakeven for the AVLV collar priced on this page is roughly $95.03 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 AVLV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AVLV?: Collars on AVLV hedge an existing long AVLV 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 AVLV implied volatility affect this collar?: AVLV ATM IV is at 18.60% with IV rank near 1.56%, 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.