How are IJR 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 IJR collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 15.00%), the computed maximum profit is $716.00 per contract and the computed maximum loss is -$784.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IJR collar?

The breakeven for the IJR collar priced on this page is roughly $150.84 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 IJR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IJR implied volatility affect this collar?

IJR ATM IV is at 15.00% with IV rank near 0.69%, 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.

IJR Collar Strategy

IJR (iShares Core S&P Small-Cap ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

iShares Trust - iShares Core S&P Small-Cap ETF is an exchange traded fund launched by BlackRock, Inc. The fund is managed by BlackRock Fund Advisors. The fund invests in public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. It invests in growth and value stocks of small-cap companies. The fund seeks to track the performance of the S&P SmallCap 600 Index, by using representative sampling technique. iShares Trust - iShares Core S&P Small-Cap ETF was formed on May 22, 2000 and is domiciled in the United States.

IJR (iShares Core S&P Small-Cap ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $112.20B, a beta of 1.03 versus the broader market, a 52-week range of 112-150.69, average daily share volume of 4.0M, a public-listing history dating back to 2000. These structural characteristics shape how IJR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.03 places IJR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IJR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on IJR?

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.

IJR snapshot

As of August 14, 2026, spot at $150.39, ATM IV 15.00%, IV rank 0.69%, expected move 4.30%. The collar on IJR 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 35-day expiry.

Why this collar structure on IJR specifically: IV regime affects collar pricing on both sides; compressed IJR IV at 15.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.30% (roughly $6.47 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 IJR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IJR should anchor to the underlying notional of $150.39 per share and to the trader's directional view on IJR etf.

IJR collar setup

The IJR 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 IJR at $150.39 on that close, the first option leg uses a $158.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IJR 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 IJR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$150.39	long
Sell 1	Call	$158.00	$0.40
Buy 1	Put	$143.00	$0.85

IJR collar risk and reward

Net Premium / Debit: -$15,084.00
Max Profit (per contract): $716.00
Max Loss (per contract): -$784.00
Breakeven(s): $150.84
Risk / Reward Ratio: 0.913

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.

IJR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on IJR. 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%	-$784.00
$33.26	-77.9%	-$784.00
$66.51	-55.8%	-$784.00
$99.76	-33.7%	-$784.00
$133.01	-11.6%	-$784.00
$166.26	+10.6%	+$716.00
$199.52	+32.7%	+$716.00
$232.77	+54.8%	+$716.00
$266.02	+76.9%	+$716.00
$299.27	+99.0%	+$716.00

When traders use collar on IJR

Collars on IJR hedge an existing long IJR 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.

IJR thesis for this collar

The market-implied 1-standard-deviation range for IJR extends from approximately $143.92 on the downside to $156.86 on the upside. A IJR collar hedges an existing long IJR 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 IJR IV rank near 0.69% 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 IJR at 15.00%. As a Financial Services name, IJR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IJR-specific events.

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

Frequently asked questions

What is a collar on IJR?: A collar on IJR is the collar strategy applied to IJR (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 IJR etf at $150.39 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IJR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IJR 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 IJR collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 15.00%), the computed maximum profit is $716.00 per contract and the computed maximum loss is -$784.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IJR collar?: The breakeven for the IJR collar priced on this page is roughly $150.84 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 IJR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on IJR?: Collars on IJR hedge an existing long IJR 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 IJR implied volatility affect this collar?: IJR ATM IV is at 15.00% with IV rank near 0.69%, 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.