How are ERTH 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 ERTH collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $259.00 per contract and the computed maximum loss is -$241.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ERTH collar?

The breakeven for the ERTH collar priced on this page is roughly $47.41 at expiration, derived from the August 14, 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 ERTH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ERTH implied volatility affect this collar?

ERTH ATM IV is at 23.90% with IV rank near 4.30%, 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.

ERTH Collar Strategy

ERTH (Invesco MSCI Sustainable Future ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The Invesco MSCI Sustainable Future ETF (ERTH) is an exchange-traded fund structured to mirror the performance of the MSCI Global Environment Select Index. To achieve its investment objective, the Fund generally dedicates at least 90% of its total assets to the specific securities that constitute this benchmark index. The underlying Index is composed of companies distinguished by their focus on developing products or delivering services that foster a more environmentally sound global economy. These companies contribute to this goal by promoting the more efficient use of the world's resources. The design of the Index emphasizes significant exposure to six key environmental impact areas: alternative energy solutions, enhancements in energy efficiency, sustainable building practices, responsible water management, measures for pollution prevention and control, and sustainable agricultural techniques. Both the Fund and the Index are reviewed and rebalanced every three months.

ERTH (Invesco MSCI Sustainable Future ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $139.8M, a beta of 1.12 versus the broader market, a 52-week range of 43.68-51.45, average daily share volume of 3K, a public-listing history dating back to 2006. These structural characteristics shape how ERTH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.12 places ERTH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ERTH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on ERTH?

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.

ERTH snapshot

As of August 14, 2026, spot at $47.45, ATM IV 23.90%, IV rank 4.30%, expected move 6.85%. The collar on ERTH below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this collar structure on ERTH specifically: IV regime affects collar pricing on both sides; compressed ERTH IV at 23.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.85% (roughly $3.25 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ERTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on ERTH should anchor to the underlying notional of $47.45 per share and to the trader's directional view on ERTH etf.

ERTH collar setup

The ERTH collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ERTH at $47.45 on that close, 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 ERTH chain at a 7-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 ERTH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$47.45	long
Sell 1	Call	$50.00	$0.36
Buy 1	Put	$45.00	$0.32

ERTH collar risk and reward

Net Premium / Debit: -$4,741.00
Max Profit (per contract): $259.00
Max Loss (per contract): -$241.00
Breakeven(s): $47.41
Risk / Reward Ratio: 1.075

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.

ERTH collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on ERTH. 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%	-$241.00
$10.50	-77.9%	-$241.00
$20.99	-55.8%	-$241.00
$31.48	-33.7%	-$241.00
$41.97	-11.5%	-$241.00
$52.46	+10.6%	+$259.00
$62.95	+32.7%	+$259.00
$73.44	+54.8%	+$259.00
$83.93	+76.9%	+$259.00
$94.42	+99.0%	+$259.00

When traders use collar on ERTH

Collars on ERTH hedge an existing long ERTH 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.

ERTH thesis for this collar

The market-implied 1-standard-deviation range for ERTH extends from approximately $44.20 on the downside to $50.70 on the upside. A ERTH collar hedges an existing long ERTH 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 ERTH IV rank near 4.30% 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 ERTH at 23.90%. As a Financial Services name, ERTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ERTH-specific events.

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

Frequently asked questions

What is a collar on ERTH?: A collar on ERTH is the collar strategy applied to ERTH (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 ERTH etf at $47.45 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ERTH chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ERTH 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 ERTH collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $259.00 per contract and the computed maximum loss is -$241.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ERTH collar?: The breakeven for the ERTH collar priced on this page is roughly $47.41 at expiration, derived from the August 14, 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 ERTH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on ERTH?: Collars on ERTH hedge an existing long ERTH 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 ERTH implied volatility affect this collar?: ERTH ATM IV is at 23.90% with IV rank near 4.30%, 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.