How are IVOV 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 IVOV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 382.30%), the computed maximum profit is $594.00 per contract and the computed maximum loss is -$606.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IVOV collar?

The breakeven for the IVOV collar priced on this page is roughly $114.06 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 IVOV market-implied 1-standard-deviation expected move is approximately 109.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IVOV implied volatility affect this collar?

IVOV ATM IV is at 382.30% with IV rank near 100.00%, 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.

IVOV Collar Strategy

IVOV (Vanguard S&P Mid-Cap 400 Value ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

This exchange-traded fund (ETF) is designed to replicate the performance of the S&P MidCap 400 Value Index, an index composed of value-oriented companies within the broader S&P 400. Its primary objective is to closely match the returns of this index, which acts as a representative measure for the overall market performance of U.S. mid-capitalization value stocks. Investors can expect a notable upside potential for growth, though its share price typically exhibits greater volatility compared to bond-focused investments. Therefore, this fund is particularly well-suited for long-range investment objectives where capital growth is a crucial factor. It is important to note that on March 14, 2023, the ETF underwent a two-for-one share split, resulting in a reduced price per share and a proportional increase in the total number of outstanding shares. Historical share price data may not always reflect this adjustment unless designated as market data; nevertheless, the overall investment returns are unaffected by this split.

IVOV (Vanguard S&P Mid-Cap 400 Value ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $1.44B, a beta of 1.02 versus the broader market, a 52-week range of 94.22-114.41, average daily share volume of 18K, a public-listing history dating back to 2010. These structural characteristics shape how IVOV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.02 places IVOV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IVOV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on IVOV?

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 IVOV snapshot

As of June 30, 2026, spot at $114.05, ATM IV 382.30%, IV rank 100.00%, expected move 109.60%. The collar on IVOV 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 17-day expiry.

Why this collar structure on IVOV specifically: IV regime affects collar pricing on both sides; elevated IVOV IV at 382.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 109.60% (roughly $125.00 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IVOV expiries trade a higher absolute premium for lower per-day decay. Position sizing on IVOV should anchor to the underlying notional of $114.05 per share and to the trader's directional view on IVOV etf.

IVOV collar setup

The IVOV 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 IVOV near $114.05, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IVOV chain at a 17-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 IVOV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$114.05	long
Sell 1	Call	$120.00	$0.07
Buy 1	Put	$108.00	$0.08

IVOV collar risk and reward

Net Premium / Debit: -$11,406.00
Max Profit (per contract): $594.00
Max Loss (per contract): -$606.00
Breakeven(s): $114.06
Risk / Reward Ratio: 0.980

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.

IVOV collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on IVOV. 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%	-$606.00
$25.23	-77.9%	-$606.00
$50.44	-55.8%	-$606.00
$75.66	-33.7%	-$606.00
$100.87	-11.6%	-$606.00
$126.09	+10.6%	+$594.00
$151.31	+32.7%	+$594.00
$176.52	+54.8%	+$594.00
$201.74	+76.9%	+$594.00
$226.95	+99.0%	+$594.00

When traders use collar on IVOV

Collars on IVOV hedge an existing long IVOV 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.

IVOV thesis for this collar

The market-implied 1-standard-deviation range for IVOV extends from approximately $-10.95 on the downside to $239.05 on the upside. A IVOV collar hedges an existing long IVOV 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 IVOV IV rank near 100.00% 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 IVOV at 382.30%. As a Financial Services name, IVOV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IVOV-specific events.

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

Frequently asked questions

What is a collar on IVOV?: A collar on IVOV is the collar strategy applied to IVOV (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 IVOV etf trading near $114.05, the strikes shown on this page are snapped to the nearest listed IVOV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IVOV 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 IVOV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 382.30%), the computed maximum profit is $594.00 per contract and the computed maximum loss is -$606.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IVOV collar?: The breakeven for the IVOV collar priced on this page is roughly $114.06 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 IVOV market-implied 1-standard-deviation expected move is approximately 109.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on IVOV?: Collars on IVOV hedge an existing long IVOV 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 IVOV implied volatility affect this collar?: IVOV ATM IV is at 382.30% with IV rank near 100.00%, 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.