How are AVMV 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 AVMV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.20%), the computed maximum profit is $398.00 per contract and the computed maximum loss is -$302.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVMV collar?

The breakeven for the AVMV collar priced on this page is roughly $80.02 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 AVMV market-implied 1-standard-deviation expected move is approximately 6.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVMV implied volatility affect this collar?

AVMV ATM IV is at 23.20% with IV rank near 22.03%, 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.

AVMV Collar Strategy

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

Targeting a broad universe of U.S. mid-capitalization companies, this fund is structured to boost expected returns by concentrating on firms with low valuations and strong profitability metrics. It offers the typical advantages of passive indexing, such as extensive diversification, minimal portfolio churn, and clear exposure transparency. However, it also seeks to add significant value by making data-driven investment decisions informed by prevailing market prices. Furthermore, its highly efficient portfolio management and trading systems are engineered to optimize performance while simultaneously reducing superfluous risks and operational costs.

AVMV (Avantis U.S. Mid Cap Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $358.9M, a beta of 0.95 versus the broader market, a 52-week range of 64.82-82, average daily share volume of 40K, a public-listing history dating back to 2023. These structural characteristics shape how AVMV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.95 places AVMV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVMV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on AVMV?

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 AVMV snapshot

As of June 29, 2026, spot at $80.54, ATM IV 23.20%, IV rank 22.03%, expected move 6.65%. The collar on AVMV 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 144-day expiry.

Why this collar structure on AVMV specifically: IV regime affects collar pricing on both sides; compressed AVMV IV at 23.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.65% (roughly $5.36 on the underlying). The 144-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVMV expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVMV should anchor to the underlying notional of $80.54 per share and to the trader's directional view on AVMV etf.

AVMV collar setup

The AVMV 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 AVMV near $80.54, the first option leg uses a $84.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVMV chain at a 144-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 AVMV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$80.54	long
Sell 1	Call	$84.00	$2.51
Buy 1	Put	$77.00	$1.99

AVMV collar risk and reward

Net Premium / Debit: -$8,002.00
Max Profit (per contract): $398.00
Max Loss (per contract): -$302.00
Breakeven(s): $80.02
Risk / Reward Ratio: 1.318

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.

AVMV collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AVMV. 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%	-$302.00
$17.82	-77.9%	-$302.00
$35.62	-55.8%	-$302.00
$53.43	-33.7%	-$302.00
$71.24	-11.6%	-$302.00
$89.04	+10.6%	+$398.00
$106.85	+32.7%	+$398.00
$124.66	+54.8%	+$398.00
$142.46	+76.9%	+$398.00
$160.27	+99.0%	+$398.00

When traders use collar on AVMV

Collars on AVMV hedge an existing long AVMV 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.

AVMV thesis for this collar

The market-implied 1-standard-deviation range for AVMV extends from approximately $75.18 on the downside to $85.90 on the upside. A AVMV collar hedges an existing long AVMV 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 AVMV IV rank near 22.03% 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 AVMV at 23.20%. As a Financial Services name, AVMV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVMV-specific events.

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

Frequently asked questions

What is a collar on AVMV?: A collar on AVMV is the collar strategy applied to AVMV (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 AVMV etf trading near $80.54, the strikes shown on this page are snapped to the nearest listed AVMV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AVMV 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 AVMV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.20%), the computed maximum profit is $398.00 per contract and the computed maximum loss is -$302.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVMV collar?: The breakeven for the AVMV collar priced on this page is roughly $80.02 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 AVMV market-implied 1-standard-deviation expected move is approximately 6.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AVMV?: Collars on AVMV hedge an existing long AVMV 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 AVMV implied volatility affect this collar?: AVMV ATM IV is at 23.20% with IV rank near 22.03%, 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.