How are PSIL 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 PSIL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.50%), the computed maximum profit is $100.50 per contract and the computed maximum loss is -$99.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSIL collar?

The breakeven for the PSIL collar priced on this page is roughly $20.00 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 PSIL market-implied 1-standard-deviation expected move is approximately 15.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSIL implied volatility affect this collar?

PSIL ATM IV is at 52.50% with IV rank near 6.05%, 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.

PSIL Collar Strategy

PSIL (AdvisorShares Psychedelics ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund is an actively managed ETF that seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of companies that derive at least 50% of their net revenue from or devote 50% of their assets to psychedelic drugs and derivatives that have economic characteristics similar to such securities. The fund primarily invests in publicly listed life sciences companies focused on psychedelic medicines as well as other companies with activities in the psychedelics business. The fund is non-diversified.

PSIL (AdvisorShares Psychedelics ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $20.8M, a beta of 0.60 versus the broader market, a 52-week range of 11.52-22.49, average daily share volume of 32K, a public-listing history dating back to 2021. These structural characteristics shape how PSIL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.60 indicates PSIL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PSIL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PSIL?

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 PSIL snapshot

As of May 15, 2026, spot at $19.97, ATM IV 52.50%, IV rank 6.05%, expected move 15.05%. The collar on PSIL 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 PSIL specifically: IV regime affects collar pricing on both sides; compressed PSIL IV at 52.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.05% (roughly $3.01 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 PSIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSIL should anchor to the underlying notional of $19.97 per share and to the trader's directional view on PSIL etf.

PSIL collar setup

The PSIL 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 PSIL near $19.97, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSIL 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 PSIL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$19.97	long
Sell 1	Call	$21.00	$1.00
Buy 1	Put	$19.00	$1.03

PSIL collar risk and reward

Net Premium / Debit: -$1,999.50
Max Profit (per contract): $100.50
Max Loss (per contract): -$99.50
Breakeven(s): $20.00
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.

PSIL collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PSIL. 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	-99.9%	-$99.50
$4.42	-77.8%	-$99.50
$8.84	-55.7%	-$99.50
$13.25	-33.6%	-$99.50
$17.67	-11.5%	-$99.50
$22.08	+10.6%	+$100.50
$26.50	+32.7%	+$100.50
$30.91	+54.8%	+$100.50
$35.32	+76.9%	+$100.50
$39.74	+99.0%	+$100.50

When traders use collar on PSIL

Collars on PSIL hedge an existing long PSIL 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.

PSIL thesis for this collar

The market-implied 1-standard-deviation range for PSIL extends from approximately $16.96 on the downside to $22.98 on the upside. A PSIL collar hedges an existing long PSIL 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 PSIL IV rank near 6.05% 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 PSIL at 52.50%. As a Financial Services name, PSIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSIL-specific events.

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

Frequently asked questions

What is a collar on PSIL?: A collar on PSIL is the collar strategy applied to PSIL (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 PSIL etf trading near $19.97, the strikes shown on this page are snapped to the nearest listed PSIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PSIL 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 PSIL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.50%), the computed maximum profit is $100.50 per contract and the computed maximum loss is -$99.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSIL collar?: The breakeven for the PSIL collar priced on this page is roughly $20.00 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 PSIL market-implied 1-standard-deviation expected move is approximately 15.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PSIL?: Collars on PSIL hedge an existing long PSIL 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 PSIL implied volatility affect this collar?: PSIL ATM IV is at 52.50% with IV rank near 6.05%, 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.