PGJ Collar Strategy
PGJ (Invesco Golden Dragon China ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Invesco Golden Dragon China ETF (Fund) is based on the NASDAQ Golden Dragon China Index (Index). The Fund generally will invest at least 90% of its total assets in equity securities of companies deriving a majority of their revenues from the People’s Republic of China and that comprise the Index. The Index is composed of US exchange-listed companies that are headquartered or incorporated in the People’s Republic of China. The Fund and the Index are rebalanced and reconstituted quarterly.
PGJ (Invesco Golden Dragon China ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $147.5M, a beta of 0.94 versus the broader market, a 52-week range of 25.11-34.54, average daily share volume of 21K, a public-listing history dating back to 2004. These structural characteristics shape how PGJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places PGJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PGJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PGJ?
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 PGJ snapshot
As of May 15, 2026, spot at $26.47, ATM IV 24.10%, IV rank 3.18%, expected move 6.91%. The collar on PGJ 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 PGJ specifically: IV regime affects collar pricing on both sides; compressed PGJ IV at 24.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $1.83 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 PGJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on PGJ should anchor to the underlying notional of $26.47 per share and to the trader's directional view on PGJ etf.
PGJ collar setup
The PGJ 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 PGJ near $26.47, the first option leg uses a $28.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PGJ 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 PGJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $26.47 | long |
| Sell 1 | Call | $28.00 | $0.50 |
| Buy 1 | Put | $25.00 | $0.20 |
PGJ collar risk and reward
- Net Premium / Debit
- -$2,617.00
- Max Profit (per contract)
- $183.00
- Max Loss (per contract)
- -$117.00
- Breakeven(s)
- $26.17
- Risk / Reward Ratio
- 1.564
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.
PGJ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PGJ. 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% | -$117.00 |
| $5.86 | -77.9% | -$117.00 |
| $11.71 | -55.7% | -$117.00 |
| $17.56 | -33.6% | -$117.00 |
| $23.42 | -11.5% | -$117.00 |
| $29.27 | +10.6% | +$183.00 |
| $35.12 | +32.7% | +$183.00 |
| $40.97 | +54.8% | +$183.00 |
| $46.82 | +76.9% | +$183.00 |
| $52.67 | +99.0% | +$183.00 |
When traders use collar on PGJ
Collars on PGJ hedge an existing long PGJ 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.
PGJ thesis for this collar
The market-implied 1-standard-deviation range for PGJ extends from approximately $24.64 on the downside to $28.30 on the upside. A PGJ collar hedges an existing long PGJ 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 PGJ IV rank near 3.18% 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 PGJ at 24.10%. As a Financial Services name, PGJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PGJ-specific events.
PGJ 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. PGJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PGJ alongside the broader basket even when PGJ-specific fundamentals are unchanged. Always rebuild the position from current PGJ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PGJ?
- A collar on PGJ is the collar strategy applied to PGJ (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 PGJ etf trading near $26.47, the strikes shown on this page are snapped to the nearest listed PGJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PGJ 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 PGJ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $183.00 per contract and the computed maximum loss is -$117.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PGJ collar?
- The breakeven for the PGJ collar priced on this page is roughly $26.17 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 PGJ market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PGJ?
- Collars on PGJ hedge an existing long PGJ 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 PGJ implied volatility affect this collar?
- PGJ ATM IV is at 24.10% with IV rank near 3.18%, 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.