How are PSI 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 PSI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.40%), the computed maximum profit is $957.50 per contract and the computed maximum loss is -$1,042.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSI collar?

The breakeven for the PSI collar priced on this page is roughly $190.42 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 PSI market-implied 1-standard-deviation expected move is approximately 15.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSI implied volatility affect this collar?

PSI ATM IV is at 52.40% with IV rank near 64.90%, 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.

PSI Collar Strategy

PSI (Invesco Semiconductors ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Invesco Semiconductors ETF (referred to as "the Fund") is designed to mirror the performance of the Dynamic Semiconductor Intellidex Index. Typically, the Fund allocates a minimum of 90% of its total assets to the common equity securities included within this Index. The Index itself aims for capital appreciation, achieved through a rigorous evaluation of companies based on key investment criteria. These include their price momentum, earnings momentum, overall quality, management efficacy, and intrinsic value. It is composed of common stocks from 30 U.S.-based companies, all primarily focused on semiconductor manufacturing. Both the Fund and its underlying Index undergo rebalancing and reconstitution on a quarterly schedule, specifically in February, May, August, and November.

PSI (Invesco Semiconductors ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.77B, a beta of 2.33 versus the broader market, a 52-week range of 57.31-184.65, average daily share volume of 415K, a public-listing history dating back to 2005. These structural characteristics shape how PSI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.33 indicates PSI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PSI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PSI?

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 PSI snapshot

As of June 30, 2026, spot at $188.80, ATM IV 52.40%, IV rank 64.90%, expected move 15.02%. The collar on PSI 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 17-day expiry.

Why this collar structure on PSI specifically: IV regime affects collar pricing on both sides; mid-range PSI IV at 52.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.02% (roughly $28.36 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSI should anchor to the underlying notional of $188.80 per share and to the trader's directional view on PSI etf.

PSI collar setup

The PSI 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 PSI near $188.80, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSI chain at a 17-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 PSI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$188.80	long
Sell 1	Call	$200.00	$3.88
Buy 1	Put	$180.00	$5.50

PSI collar risk and reward

Net Premium / Debit: -$19,042.50
Max Profit (per contract): $957.50
Max Loss (per contract): -$1,042.50
Breakeven(s): $190.42
Risk / Reward Ratio: 0.918

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.

PSI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PSI. 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%	-$1,042.50
$41.75	-77.9%	-$1,042.50
$83.50	-55.8%	-$1,042.50
$125.24	-33.7%	-$1,042.50
$166.98	-11.6%	-$1,042.50
$208.73	+10.6%	+$957.50
$250.47	+32.7%	+$957.50
$292.22	+54.8%	+$957.50
$333.96	+76.9%	+$957.50
$375.70	+99.0%	+$957.50

When traders use collar on PSI

Collars on PSI hedge an existing long PSI 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.

PSI thesis for this collar

The market-implied 1-standard-deviation range for PSI extends from approximately $160.44 on the downside to $217.16 on the upside. A PSI collar hedges an existing long PSI 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 PSI IV rank near 64.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PSI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSI-specific events.

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

Frequently asked questions

What is a collar on PSI?: A collar on PSI is the collar strategy applied to PSI (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 PSI etf trading near $188.80, the strikes shown on this page are snapped to the nearest listed PSI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PSI 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 PSI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.40%), the computed maximum profit is $957.50 per contract and the computed maximum loss is -$1,042.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSI collar?: The breakeven for the PSI collar priced on this page is roughly $190.42 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 PSI market-implied 1-standard-deviation expected move is approximately 15.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PSI?: Collars on PSI hedge an existing long PSI 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 PSI implied volatility affect this collar?: PSI ATM IV is at 52.40% with IV rank near 64.90%, 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.