AVRE Collar Strategy
AVRE (Avantis Real Estate ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Provides exposure to real estate securities focused on income derived from real estate investments and structured in a similar way as real estate investment trust (REITs).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 costs for investors. Built to fit seamlessly into an investor's asset allocation.
AVRE (Avantis Real Estate ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $800.0M, a beta of 1.02 versus the broader market, a 52-week range of 42.832-48.2, average daily share volume of 58K, a public-listing history dating back to 2021. These structural characteristics shape how AVRE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places AVRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVRE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AVRE?
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 AVRE snapshot
As of May 15, 2026, spot at $47.25, ATM IV 37.00%, IV rank 11.19%, expected move 10.61%. The collar on AVRE 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 AVRE specifically: IV regime affects collar pricing on both sides; compressed AVRE IV at 37.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.61% (roughly $5.01 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 AVRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVRE should anchor to the underlying notional of $47.25 per share and to the trader's directional view on AVRE etf.
AVRE collar setup
The AVRE 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 AVRE near $47.25, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVRE 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 AVRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $47.25 | long |
| Sell 1 | Call | $50.00 | $1.13 |
| Buy 1 | Put | $45.00 | $1.12 |
AVRE collar risk and reward
- Net Premium / Debit
- -$4,724.00
- Max Profit (per contract)
- $276.00
- Max Loss (per contract)
- -$224.00
- Breakeven(s)
- $47.24
- Risk / Reward Ratio
- 1.232
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.
AVRE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AVRE. 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% | -$224.00 |
| $10.46 | -77.9% | -$224.00 |
| $20.90 | -55.8% | -$224.00 |
| $31.35 | -33.7% | -$224.00 |
| $41.79 | -11.5% | -$224.00 |
| $52.24 | +10.6% | +$276.00 |
| $62.69 | +32.7% | +$276.00 |
| $73.13 | +54.8% | +$276.00 |
| $83.58 | +76.9% | +$276.00 |
| $94.03 | +99.0% | +$276.00 |
When traders use collar on AVRE
Collars on AVRE hedge an existing long AVRE 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.
AVRE thesis for this collar
The market-implied 1-standard-deviation range for AVRE extends from approximately $42.24 on the downside to $52.26 on the upside. A AVRE collar hedges an existing long AVRE 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 AVRE IV rank near 11.19% 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 AVRE at 37.00%. As a Financial Services name, AVRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVRE-specific events.
AVRE 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. AVRE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVRE alongside the broader basket even when AVRE-specific fundamentals are unchanged. Always rebuild the position from current AVRE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AVRE?
- A collar on AVRE is the collar strategy applied to AVRE (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 AVRE etf trading near $47.25, the strikes shown on this page are snapped to the nearest listed AVRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVRE 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 AVRE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.00%), the computed maximum profit is $276.00 per contract and the computed maximum loss is -$224.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVRE collar?
- The breakeven for the AVRE collar priced on this page is roughly $47.24 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 AVRE market-implied 1-standard-deviation expected move is approximately 10.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AVRE?
- Collars on AVRE hedge an existing long AVRE 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 AVRE implied volatility affect this collar?
- AVRE ATM IV is at 37.00% with IV rank near 11.19%, 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.