AVNM Collar Strategy
AVNM (Avantis All International Markets Equity ETF 9), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Designed to provide exposure to a broadly diversified set of companies and sectors across international developed and emerging market countries while focusing on securities with higher expected returns*. The strategy pursues its objective through investing in a series of other Avantis exchange-traded funds (ETFs).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 transaction costs for investors.
AVNM (Avantis All International Markets Equity ETF 9) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $625.2M, a beta of 0.65 versus the broader market, a 52-week range of 62.02-84.25, average daily share volume of 65K, a public-listing history dating back to 2023. These structural characteristics shape how AVNM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates AVNM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AVNM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AVNM?
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 AVNM snapshot
As of May 15, 2026, spot at $82.05, ATM IV 22.80%, IV rank 31.06%, expected move 6.54%. The collar on AVNM 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 AVNM specifically: IV regime affects collar pricing on both sides; mid-range AVNM IV at 22.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.54% (roughly $5.36 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 AVNM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVNM should anchor to the underlying notional of $82.05 per share and to the trader's directional view on AVNM etf.
AVNM collar setup
The AVNM 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 AVNM near $82.05, the first option leg uses a $86.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVNM 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 AVNM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $82.05 | long |
| Sell 1 | Call | $86.00 | $0.93 |
| Buy 1 | Put | $78.00 | $0.77 |
AVNM collar risk and reward
- Net Premium / Debit
- -$8,189.00
- Max Profit (per contract)
- $411.00
- Max Loss (per contract)
- -$389.00
- Breakeven(s)
- $81.89
- Risk / Reward Ratio
- 1.057
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.
AVNM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AVNM. 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% | -$389.00 |
| $18.15 | -77.9% | -$389.00 |
| $36.29 | -55.8% | -$389.00 |
| $54.43 | -33.7% | -$389.00 |
| $72.57 | -11.6% | -$389.00 |
| $90.71 | +10.6% | +$411.00 |
| $108.85 | +32.7% | +$411.00 |
| $126.99 | +54.8% | +$411.00 |
| $145.13 | +76.9% | +$411.00 |
| $163.28 | +99.0% | +$411.00 |
When traders use collar on AVNM
Collars on AVNM hedge an existing long AVNM 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.
AVNM thesis for this collar
The market-implied 1-standard-deviation range for AVNM extends from approximately $76.69 on the downside to $87.41 on the upside. A AVNM collar hedges an existing long AVNM 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 AVNM IV rank near 31.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on AVNM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AVNM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVNM-specific events.
AVNM 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. AVNM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVNM alongside the broader basket even when AVNM-specific fundamentals are unchanged. Always rebuild the position from current AVNM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AVNM?
- A collar on AVNM is the collar strategy applied to AVNM (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 AVNM etf trading near $82.05, the strikes shown on this page are snapped to the nearest listed AVNM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVNM 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 AVNM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.80%), the computed maximum profit is $411.00 per contract and the computed maximum loss is -$389.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVNM collar?
- The breakeven for the AVNM collar priced on this page is roughly $81.89 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 AVNM market-implied 1-standard-deviation expected move is approximately 6.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AVNM?
- Collars on AVNM hedge an existing long AVNM 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 AVNM implied volatility affect this collar?
- AVNM ATM IV is at 22.80% with IV rank near 31.06%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.