BOND Collar Strategy
BOND (PIMCO Active Bond Exchange-Traded Fund), in the Financial Services sector, (Asset Management industry), listed on NYSE.
The Fund seeks current income and long-term capital appreciation, consistent with prudent investment management.
BOND (PIMCO Active Bond Exchange-Traded Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.86B, a beta of 1.03 versus the broader market, a 52-week range of 89.68-94.68, average daily share volume of 502K, a public-listing history dating back to 2012. These structural characteristics shape how BOND etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places BOND roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BOND pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BOND?
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 BOND snapshot
As of May 15, 2026, spot at $91.09, ATM IV 5.20%, IV rank 0.50%, expected move 1.49%. The collar on BOND 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 BOND specifically: IV regime affects collar pricing on both sides; compressed BOND IV at 5.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 1.49% (roughly $1.36 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 BOND expiries trade a higher absolute premium for lower per-day decay. Position sizing on BOND should anchor to the underlying notional of $91.09 per share and to the trader's directional view on BOND etf.
BOND collar setup
The BOND 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 BOND near $91.09, the first option leg uses a $95.64 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BOND 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 BOND shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $91.09 | long |
| Sell 1 | Call | $95.64 | N/A |
| Buy 1 | Put | $86.54 | N/A |
BOND collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
BOND collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BOND. 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.
When traders use collar on BOND
Collars on BOND hedge an existing long BOND 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.
BOND thesis for this collar
The market-implied 1-standard-deviation range for BOND extends from approximately $89.73 on the downside to $92.45 on the upside. A BOND collar hedges an existing long BOND 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 BOND IV rank near 0.50% 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 BOND at 5.20%. As a Financial Services name, BOND options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BOND-specific events.
BOND 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. BOND positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BOND alongside the broader basket even when BOND-specific fundamentals are unchanged. Always rebuild the position from current BOND chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BOND?
- A collar on BOND is the collar strategy applied to BOND (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 BOND etf trading near $91.09, the strikes shown on this page are snapped to the nearest listed BOND chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BOND 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 BOND collar priced from the end-of-day chain at a 30-day expiry (ATM IV 5.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BOND collar?
- The breakeven for the BOND collar priced on this page is no defined breakeven on the modeled curve 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 BOND market-implied 1-standard-deviation expected move is approximately 1.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BOND?
- Collars on BOND hedge an existing long BOND 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 BOND implied volatility affect this collar?
- BOND ATM IV is at 5.20% with IV rank near 0.50%, 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.