How are PSR 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 PSR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.80%), the computed maximum profit is $503.00 per contract and the computed maximum loss is -$497.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSR collar?

The breakeven for the PSR collar priced on this page is roughly $102.97 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 PSR market-implied 1-standard-deviation expected move is approximately 11.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSR implied volatility affect this collar?

PSR ATM IV is at 38.80% with IV rank near 88.66%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

PSR Collar Strategy

PSR (Invesco Active U.S. Real Estate ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Invesco Active U.S. Real Estate ETF (PSR) is an actively managed exchange-traded fund focused on the U.S. real estate sector. It primarily invests in equity Real Estate Investment Trusts (REITs) that are constituents of the FTSE NAREIT All Equity REITs Index at the time of purchase. The fund employs a data-driven quantitative and statistical framework to identify undervalued securities and mitigate overall portfolio risk. PSR's main goal is to achieve a high total return, combining capital growth with consistent income generation. The fund's holdings and overall portfolio are subject to monthly evaluation by portfolio management.

PSR (Invesco Active U.S. Real Estate ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $57.8M, a beta of 0.99 versus the broader market, a 52-week range of 89.15-105.1, average daily share volume of 3K, a public-listing history dating back to 2008. These structural characteristics shape how PSR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.99 places PSR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PSR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PSR?

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 PSR snapshot

As of June 30, 2026, spot at $102.97, ATM IV 38.80%, IV rank 88.66%, expected move 11.12%. The collar on PSR 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 PSR specifically: IV regime affects collar pricing on both sides; elevated PSR IV at 38.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.12% (roughly $11.45 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 PSR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSR should anchor to the underlying notional of $102.97 per share and to the trader's directional view on PSR etf.

PSR collar setup

The PSR 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 PSR near $102.97, the first option leg uses a $108.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSR 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 PSR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$102.97	long
Sell 1	Call	$108.00	$0.10
Buy 1	Put	$98.00	$0.10

PSR collar risk and reward

Net Premium / Debit: -$10,297.00
Max Profit (per contract): $503.00
Max Loss (per contract): -$497.00
Breakeven(s): $102.97
Risk / Reward Ratio: 1.012

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.

PSR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PSR. 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%	-$497.00
$22.78	-77.9%	-$497.00
$45.54	-55.8%	-$497.00
$68.31	-33.7%	-$497.00
$91.07	-11.6%	-$497.00
$113.84	+10.6%	+$503.00
$136.61	+32.7%	+$503.00
$159.37	+54.8%	+$503.00
$182.14	+76.9%	+$503.00
$204.91	+99.0%	+$503.00

When traders use collar on PSR

Collars on PSR hedge an existing long PSR 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.

PSR thesis for this collar

The market-implied 1-standard-deviation range for PSR extends from approximately $91.52 on the downside to $114.42 on the upside. A PSR collar hedges an existing long PSR 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 PSR IV rank near 88.66% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PSR at 38.80%. As a Financial Services name, PSR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSR-specific events.

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

Frequently asked questions

What is a collar on PSR?: A collar on PSR is the collar strategy applied to PSR (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 PSR etf trading near $102.97, the strikes shown on this page are snapped to the nearest listed PSR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PSR 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 PSR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.80%), the computed maximum profit is $503.00 per contract and the computed maximum loss is -$497.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSR collar?: The breakeven for the PSR collar priced on this page is roughly $102.97 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 PSR market-implied 1-standard-deviation expected move is approximately 11.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PSR?: Collars on PSR hedge an existing long PSR 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 PSR implied volatility affect this collar?: PSR ATM IV is at 38.80% with IV rank near 88.66%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.