PAMC Collar Strategy
PAMC (Pacer Lunt MidCap Multi-Factor Alternator ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
A strategy driven exchange traded fund that aims to provide capital appreciation over time by rotating among momentum, quality, value and volatility factors within S&P MidCap 400 companies.
PAMC (Pacer Lunt MidCap Multi-Factor Alternator ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $53.3M, a beta of 1.02 versus the broader market, a 52-week range of 42.78-55.952, average daily share volume of 2K, a public-listing history dating back to 2020. These structural characteristics shape how PAMC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places PAMC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PAMC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PAMC?
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.
PAMC snapshot
As of September 30, 2026, spot at $51.63, ATM IV 370.90%, IV rank 100.00%, expected move 106.33%. The collar on PAMC 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 PAMC specifically: IV regime affects collar pricing on both sides; elevated PAMC IV at 370.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 106.33% (roughly $54.90 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 PAMC expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAMC should anchor to the underlying notional of $51.63 per share and to the trader's directional view on PAMC etf.
PAMC collar setup
The PAMC 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 PAMC at $51.63 on that close, the first option leg uses a $54.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAMC 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 PAMC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $51.63 | long |
| Sell 1 | Call | $54.00 | $0.80 |
| Buy 1 | Put | $49.00 | $0.49 |
PAMC collar risk and reward
- Net Premium / Debit
- -$5,132.00
- Max Profit (per contract)
- $268.00
- Max Loss (per contract)
- -$232.00
- Breakeven(s)
- $51.32
- Risk / Reward Ratio
- 1.155
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.
PAMC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PAMC. 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% | -$232.00 |
| $11.42 | -77.9% | -$232.00 |
| $22.84 | -55.8% | -$232.00 |
| $34.25 | -33.7% | -$232.00 |
| $45.67 | -11.5% | -$232.00 |
| $57.08 | +10.6% | +$268.00 |
| $68.50 | +32.7% | +$268.00 |
| $79.91 | +54.8% | +$268.00 |
| $91.33 | +76.9% | +$268.00 |
| $102.74 | +99.0% | +$268.00 |
When traders use collar on PAMC
Collars on PAMC hedge an existing long PAMC 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.
PAMC thesis for this collar
The market-implied 1-standard-deviation range for PAMC extends from approximately $-3.27 on the downside to $106.53 on the upside. A PAMC collar hedges an existing long PAMC 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 PAMC 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 PAMC at 370.90%. As a Financial Services name, PAMC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAMC-specific events.
PAMC 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. PAMC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PAMC alongside the broader basket even when PAMC-specific fundamentals are unchanged. Always rebuild the position from current PAMC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PAMC?
- A collar on PAMC is the collar strategy applied to PAMC (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 PAMC etf at $51.63 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed PAMC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PAMC 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 PAMC collar priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 370.90%), the computed maximum profit is $268.00 per contract and the computed maximum loss is -$232.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PAMC collar?
- The breakeven for the PAMC collar priced on this page is roughly $51.32 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 PAMC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 106.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PAMC?
- Collars on PAMC hedge an existing long PAMC 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 PAMC implied volatility affect this collar?
- PAMC ATM IV is at 370.90% 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.