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 29.50%), the computed maximum profit is $193.00 per contract and the computed maximum loss is -$207.00 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 $36.07 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 8.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PDBA implied volatility affect this collar?

PDBA ATM IV is at 29.50% with IV rank near 33.88%, 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.

PDBA Collar Strategy

PDBA (Invesco Agriculture Commodity Strategy No K-1 ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Invesco Agriculture Commodity Strategy No K-1 ETF is an actively managed fund, traded on exchanges, that aims to deliver significant long-term capital growth for investors. Its strategy involves investing in futures contracts based on agricultural commodities, as well as other commodity-linked futures. Additionally, the fund holds collateral assets like cash, cash equivalents, or high-quality securities, all of which are strategically chosen for their economic ties to the agriculture sector. A key objective for this ETF is to outperform the returns of the DBIQ Diversified Agriculture Index Excess Return Index, a benchmark composed of futures contracts for the eleven most actively traded agricultural commodities worldwide.

PDBA (Invesco Agriculture Commodity Strategy No K-1 ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $89.3M, a beta of 0.34 versus the broader market, a 52-week range of 33.88-38.43, average daily share volume of 365K, 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 0.34 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 June 25, 2026, spot at $35.86, ATM IV 29.50%, IV rank 33.88%, expected move 8.46%. 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 18-day expiry.

Why this collar structure on PDBA specifically: IV regime affects collar pricing on both sides; mid-range PDBA IV at 29.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.46% (roughly $3.03 on the underlying). The 18-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 $35.86 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 $35.86, the first option leg uses a $38.00 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 18-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	$35.86	long
Sell 1	Call	$38.00	$0.27
Buy 1	Put	$34.00	$0.48

PDBA collar risk and reward

Net Premium / Debit: -$3,607.00
Max Profit (per contract): $193.00
Max Loss (per contract): -$207.00
Breakeven(s): $36.07
Risk / Reward Ratio: 0.932

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.

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%	-$207.00
$7.94	-77.9%	-$207.00
$15.87	-55.8%	-$207.00
$23.79	-33.6%	-$207.00
$31.72	-11.5%	-$207.00
$39.65	+10.6%	+$193.00
$47.58	+32.7%	+$193.00
$55.50	+54.8%	+$193.00
$63.43	+76.9%	+$193.00
$71.36	+99.0%	+$193.00

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 $32.83 on the downside to $38.89 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 33.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PDBA should anchor more to the directional view and the expected-move geometry. 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 $35.86, 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 29.50%), the computed maximum profit is $193.00 per contract and the computed maximum loss is -$207.00 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 $36.07 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 8.46%; 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 29.50% with IV rank near 33.88%, 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.