How are EDV 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 EDV collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.60%), the computed maximum profit is $302.50 per contract and the computed maximum loss is -$297.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EDV collar?

The breakeven for the EDV collar priced on this page is roughly $56.98 at expiration, derived from the November 13, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The EDV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current EDV implied volatility affect this collar?

EDV ATM IV is at 20.60% with IV rank near 89.16%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

EDV Collar Strategy

EDV (Vanguard Extended Duration Treasury ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on AMEX.

This fund aims to replicate the returns of the Bloomberg U.S. Treasury STRIPS 20–30 Year Equal Par Bond Index. It operates under a passive investment strategy, using index sampling to gain comprehensive exposure to the extended-duration Treasury STRIPS market. The ETF offers a source of consistent income, backed by the superior creditworthiness of U.S. government bonds.

EDV (Vanguard Extended Duration Treasury ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $3.58B, a beta of 3.44 versus the broader market, a 52-week range of 53.4-69.42, average daily share volume of 1.7M, a public-listing history dating back to 2007. These structural characteristics shape how EDV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.44 indicates EDV has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. EDV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on EDV?

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.

EDV snapshot

As of November 13, 2026, spot at $56.95, ATM IV 20.60%, IV rank 89.16%, expected move 5.91%. The collar on EDV below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on EDV specifically: IV regime affects collar pricing on both sides; elevated EDV IV at 20.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.91% (roughly $3.36 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EDV expiries trade a higher absolute premium for lower per-day decay. Position sizing on EDV should anchor to the underlying notional of $56.95 per share and to the trader's directional view on EDV etf.

EDV collar setup

The EDV collar below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With EDV at $56.95 on that close, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EDV chain at a 35-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 EDV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$56.95	long
Sell 1	Call	$60.00	$0.38
Buy 1	Put	$54.00	$0.40

EDV collar risk and reward

Net Premium / Debit: -$5,697.50
Max Profit (per contract): $302.50
Max Loss (per contract): -$297.50
Breakeven(s): $56.98
Risk / Reward Ratio: 1.017

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.

EDV collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on EDV. 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%	-$297.50
$12.60	-77.9%	-$297.50
$25.19	-55.8%	-$297.50
$37.78	-33.7%	-$297.50
$50.37	-11.5%	-$297.50
$62.96	+10.6%	+$302.50
$75.56	+32.7%	+$302.50
$88.15	+54.8%	+$302.50
$100.74	+76.9%	+$302.50
$113.33	+99.0%	+$302.50

When traders use collar on EDV

Collars on EDV hedge an existing long EDV 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.

EDV thesis for this collar

The market-implied 1-standard-deviation range for EDV extends from approximately $53.59 on the downside to $60.31 on the upside. A EDV collar hedges an existing long EDV 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 EDV IV rank near 89.16% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on EDV at 20.60%. As a Financial Services name, EDV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EDV-specific events.

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

Frequently asked questions

What is a collar on EDV?: A collar on EDV is the collar strategy applied to EDV (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 EDV etf at $56.95 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed EDV chain strike and the premiums come straight from that session's bid/ask midpoint.
How are EDV 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 EDV collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.60%), the computed maximum profit is $302.50 per contract and the computed maximum loss is -$297.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EDV collar?: The breakeven for the EDV collar priced on this page is roughly $56.98 at expiration, derived from the November 13, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The EDV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on EDV?: Collars on EDV hedge an existing long EDV 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 EDV implied volatility affect this collar?: EDV ATM IV is at 20.60% with IV rank near 89.16%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.