How are PEZ 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 PEZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 26.60%), the computed maximum profit is $465.00 per contract and the computed maximum loss is -$435.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PEZ collar?

The breakeven for the PEZ collar priced on this page is roughly $95.35 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 PEZ market-implied 1-standard-deviation expected move is approximately 7.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PEZ implied volatility affect this collar?

PEZ ATM IV is at 26.60% with IV rank near 21.02%, 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.

PEZ Collar Strategy

PEZ (Invesco Dorsey Wright Consumer Cyclicals Momentum ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (Fund) is based on the Dorsey Wright Consumer Cyclicals Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security's performance in a given universe over time as compared to the performance of all other securities in that universe. The Fund and the Index are rebalanced and reconstituted quarterly.

PEZ (Invesco Dorsey Wright Consumer Cyclicals Momentum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $49.5M, a beta of 1.62 versus the broader market, a 52-week range of 90.81-110.43, average daily share volume of 1K, a public-listing history dating back to 2006. These structural characteristics shape how PEZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.62 indicates PEZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PEZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PEZ?

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 PEZ snapshot

As of May 15, 2026, spot at $95.51, ATM IV 26.60%, IV rank 21.02%, expected move 7.63%. The collar on PEZ 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 PEZ specifically: IV regime affects collar pricing on both sides; compressed PEZ IV at 26.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.63% (roughly $7.28 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 PEZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on PEZ should anchor to the underlying notional of $95.51 per share and to the trader's directional view on PEZ etf.

PEZ collar setup

The PEZ 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 PEZ near $95.51, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PEZ 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 PEZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$95.51	long
Sell 1	Call	$100.00	$1.44
Buy 1	Put	$91.00	$1.28

PEZ collar risk and reward

Net Premium / Debit: -$9,535.00
Max Profit (per contract): $465.00
Max Loss (per contract): -$435.00
Breakeven(s): $95.35
Risk / Reward Ratio: 1.069

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.

PEZ collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PEZ. 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%	-$435.00
$21.13	-77.9%	-$435.00
$42.24	-55.8%	-$435.00
$63.36	-33.7%	-$435.00
$84.48	-11.6%	-$435.00
$105.59	+10.6%	+$465.00
$126.71	+32.7%	+$465.00
$147.83	+54.8%	+$465.00
$168.94	+76.9%	+$465.00
$190.06	+99.0%	+$465.00

When traders use collar on PEZ

Collars on PEZ hedge an existing long PEZ 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.

PEZ thesis for this collar

The market-implied 1-standard-deviation range for PEZ extends from approximately $88.23 on the downside to $102.79 on the upside. A PEZ collar hedges an existing long PEZ 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 PEZ IV rank near 21.02% 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 PEZ at 26.60%. As a Financial Services name, PEZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PEZ-specific events.

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

Frequently asked questions

What is a collar on PEZ?: A collar on PEZ is the collar strategy applied to PEZ (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 PEZ etf trading near $95.51, the strikes shown on this page are snapped to the nearest listed PEZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PEZ 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 PEZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 26.60%), the computed maximum profit is $465.00 per contract and the computed maximum loss is -$435.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PEZ collar?: The breakeven for the PEZ collar priced on this page is roughly $95.35 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 PEZ market-implied 1-standard-deviation expected move is approximately 7.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PEZ?: Collars on PEZ hedge an existing long PEZ 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 PEZ implied volatility affect this collar?: PEZ ATM IV is at 26.60% with IV rank near 21.02%, 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.