AVUS Collar Strategy
AVUS (Avantis U.S. Equity ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
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AVUS (Avantis U.S. Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $12.24B, a beta of 1.02 versus the broader market, a 52-week range of 94.17-125.29, average daily share volume of 302K, a public-listing history dating back to 2019. These structural characteristics shape how AVUS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places AVUS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVUS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AVUS?
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 AVUS snapshot
As of May 15, 2026, spot at $124.52, ATM IV 16.00%, IV rank 32.86%, expected move 4.59%. The collar on AVUS 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 AVUS specifically: IV regime affects collar pricing on both sides; mid-range AVUS IV at 16.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.59% (roughly $5.71 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 AVUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVUS should anchor to the underlying notional of $124.52 per share and to the trader's directional view on AVUS etf.
AVUS collar setup
The AVUS 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 AVUS near $124.52, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVUS 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 AVUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $124.52 | long |
| Sell 1 | Call | $130.00 | $0.72 |
| Buy 1 | Put | $118.00 | $0.43 |
AVUS collar risk and reward
- Net Premium / Debit
- -$12,423.00
- Max Profit (per contract)
- $577.00
- Max Loss (per contract)
- -$623.00
- Breakeven(s)
- $124.23
- Risk / Reward Ratio
- 0.926
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.
AVUS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AVUS. 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% | -$623.00 |
| $27.54 | -77.9% | -$623.00 |
| $55.07 | -55.8% | -$623.00 |
| $82.60 | -33.7% | -$623.00 |
| $110.13 | -11.6% | -$623.00 |
| $137.66 | +10.6% | +$577.00 |
| $165.20 | +32.7% | +$577.00 |
| $192.73 | +54.8% | +$577.00 |
| $220.26 | +76.9% | +$577.00 |
| $247.79 | +99.0% | +$577.00 |
When traders use collar on AVUS
Collars on AVUS hedge an existing long AVUS 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.
AVUS thesis for this collar
The market-implied 1-standard-deviation range for AVUS extends from approximately $118.81 on the downside to $130.23 on the upside. A AVUS collar hedges an existing long AVUS 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 AVUS IV rank near 32.86% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on AVUS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AVUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVUS-specific events.
AVUS 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. AVUS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVUS alongside the broader basket even when AVUS-specific fundamentals are unchanged. Always rebuild the position from current AVUS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AVUS?
- A collar on AVUS is the collar strategy applied to AVUS (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 AVUS etf trading near $124.52, the strikes shown on this page are snapped to the nearest listed AVUS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVUS 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 AVUS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 16.00%), the computed maximum profit is $577.00 per contract and the computed maximum loss is -$623.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVUS collar?
- The breakeven for the AVUS collar priced on this page is roughly $124.23 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 AVUS market-implied 1-standard-deviation expected move is approximately 4.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AVUS?
- Collars on AVUS hedge an existing long AVUS 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 AVUS implied volatility affect this collar?
- AVUS ATM IV is at 16.00% with IV rank near 32.86%, 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.