PALC Collar Strategy
PALC (Pacer Lunt Large Cap Multi-Factor Alternator ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This exchange-traded fund (ETF) utilizes a systematic approach to foster capital appreciation over the long term. It achieves this by dynamically shifting its allocation among prominent investment factors – namely momentum, quality, value, and volatility – exclusively within the constituents of the S&P 500 index.
PALC (Pacer Lunt Large Cap Multi-Factor Alternator ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $221.1M, a beta of 0.94 versus the broader market, a 52-week range of 49.56-59.77, average daily share volume of 7K, a public-listing history dating back to 2020. These structural characteristics shape how PALC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places PALC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PALC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PALC?
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.
PALC snapshot
As of September 30, 2026, spot at $53.87, ATM IV 33.30%, IV rank 43.95%, expected move 9.55%. The collar on PALC below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 51-day expiry.
Why this collar structure on PALC specifically: IV regime affects collar pricing on both sides; mid-range PALC IV at 33.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $5.14 on the underlying). The 51-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PALC expiries trade a higher absolute premium for lower per-day decay. Position sizing on PALC should anchor to the underlying notional of $53.87 per share and to the trader's directional view on PALC etf.
PALC collar setup
The PALC collar below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PALC at $53.87 on that close, the first option leg uses a $57.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PALC chain at a 51-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 PALC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $53.87 | long |
| Sell 1 | Call | $57.00 | $0.96 |
| Buy 1 | Put | $51.00 | $0.78 |
PALC collar risk and reward
- Net Premium / Debit
- -$5,369.00
- Max Profit (per contract)
- $331.00
- Max Loss (per contract)
- -$269.00
- Breakeven(s)
- $53.69
- Risk / Reward Ratio
- 1.230
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.
PALC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PALC. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$269.00 |
| $11.92 | -77.9% | -$269.00 |
| $23.83 | -55.8% | -$269.00 |
| $35.74 | -33.7% | -$269.00 |
| $47.65 | -11.5% | -$269.00 |
| $59.56 | +10.6% | +$331.00 |
| $71.47 | +32.7% | +$331.00 |
| $83.38 | +54.8% | +$331.00 |
| $95.29 | +76.9% | +$331.00 |
| $107.20 | +99.0% | +$331.00 |
When traders use collar on PALC
Collars on PALC hedge an existing long PALC 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.
PALC thesis for this collar
The market-implied 1-standard-deviation range for PALC extends from approximately $48.73 on the downside to $59.01 on the upside. A PALC collar hedges an existing long PALC 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 PALC IV rank near 43.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PALC should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PALC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PALC-specific events.
PALC 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. PALC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PALC alongside the broader basket even when PALC-specific fundamentals are unchanged. Always rebuild the position from current PALC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PALC?
- A collar on PALC is the collar strategy applied to PALC (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 PALC etf at $53.87 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed PALC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PALC 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 PALC collar priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $331.00 per contract and the computed maximum loss is -$269.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PALC collar?
- The breakeven for the PALC collar priced on this page is roughly $53.69 at expiration, derived from the September 30, 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 PALC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PALC?
- Collars on PALC hedge an existing long PALC 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 PALC implied volatility affect this collar?
- PALC ATM IV is at 33.30% with IV rank near 43.95%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.