PDBA Collar Strategy
PDBA (Invesco Agriculture Commodity Strategy No K-1 ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Invesco Agriculture Commodity Strategy No K-1 ETF (Fund) is an actively managed exchange-traded fund (ETF) that seeks long-term capital appreciation by investing in commodity futures, commodity-linked futures and collateral, such as cash, cash-like instruments or high-quality securities that are economically linked to the agriculture sector. The Fund seeks to exceed the performance of the DBIQ Diversified Agriculture Index Excess Return Index, composed of futures contracts of the 11 most actively traded global agricultural commodities.
PDBA (Invesco Agriculture Commodity Strategy No K-1 ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $95.8M, a beta of 0.33 versus the broader market, a 52-week range of 33.88-38.43, average daily share volume of 230K, a public-listing history dating back to 2022. These structural characteristics shape how PDBA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates PDBA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PDBA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PDBA?
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 PDBA snapshot
As of May 15, 2026, spot at $37.13, ATM IV 19.70%, IV rank 19.38%, expected move 5.65%. The collar on PDBA 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 34-day expiry.
Why this collar structure on PDBA specifically: IV regime affects collar pricing on both sides; compressed PDBA IV at 19.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.65% (roughly $2.10 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PDBA expiries trade a higher absolute premium for lower per-day decay. Position sizing on PDBA should anchor to the underlying notional of $37.13 per share and to the trader's directional view on PDBA etf.
PDBA collar setup
The PDBA 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 PDBA near $37.13, the first option leg uses a $39.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PDBA chain at a 34-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 PDBA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $37.13 | long |
| Sell 1 | Call | $39.00 | $0.37 |
| Buy 1 | Put | $35.00 | $0.23 |
PDBA collar risk and reward
- Net Premium / Debit
- -$3,699.00
- Max Profit (per contract)
- $201.00
- Max Loss (per contract)
- -$199.00
- Breakeven(s)
- $36.99
- Risk / Reward Ratio
- 1.010
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.
PDBA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PDBA. 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% | -$199.00 |
| $8.22 | -77.9% | -$199.00 |
| $16.43 | -55.8% | -$199.00 |
| $24.64 | -33.7% | -$199.00 |
| $32.84 | -11.5% | -$199.00 |
| $41.05 | +10.6% | +$201.00 |
| $49.26 | +32.7% | +$201.00 |
| $57.47 | +54.8% | +$201.00 |
| $65.68 | +76.9% | +$201.00 |
| $73.89 | +99.0% | +$201.00 |
When traders use collar on PDBA
Collars on PDBA hedge an existing long PDBA 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.
PDBA thesis for this collar
The market-implied 1-standard-deviation range for PDBA extends from approximately $35.03 on the downside to $39.23 on the upside. A PDBA collar hedges an existing long PDBA 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 PDBA IV rank near 19.38% 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 PDBA at 19.70%. As a Financial Services name, PDBA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PDBA-specific events.
PDBA 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. PDBA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PDBA alongside the broader basket even when PDBA-specific fundamentals are unchanged. Always rebuild the position from current PDBA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PDBA?
- A collar on PDBA is the collar strategy applied to PDBA (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 PDBA etf trading near $37.13, the strikes shown on this page are snapped to the nearest listed PDBA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PDBA 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 PDBA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 19.70%), the computed maximum profit is $201.00 per contract and the computed maximum loss is -$199.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PDBA collar?
- The breakeven for the PDBA collar priced on this page is roughly $36.99 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 PDBA market-implied 1-standard-deviation expected move is approximately 5.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PDBA?
- Collars on PDBA hedge an existing long PDBA 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 PDBA implied volatility affect this collar?
- PDBA ATM IV is at 19.70% with IV rank near 19.38%, 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.