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 (ETF) that investments primarily from a universe of securities that are included within the FTSE NAREIT All Equity REITs Index at the time of purchase. The selection methodology uses quantitative and statistical metrics to identify attractively priced securities and manage risk. The Fund seeks to achieve high total return through growth of capital and current income by investing principally in equity real estate investment trusts (REITs). Portfolio management generally conducts a security and portfolio evaluation monthly.
PSR (Invesco Active U.S. Real Estate ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $51.6M, a beta of 1.04 versus the broader market, a 52-week range of 89.15-102.5, average daily share volume of 2K, 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 1.04 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 May 15, 2026, spot at $99.56, ATM IV 15.20%, IV rank 7.56%, expected move 4.36%. 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 34-day expiry.
Why this collar structure on PSR specifically: IV regime affects collar pricing on both sides; compressed PSR IV at 15.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.36% (roughly $4.34 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 PSR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSR should anchor to the underlying notional of $99.56 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 $99.56, the first option leg uses a $105.00 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 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 PSR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $99.56 | long |
| Sell 1 | Call | $105.00 | $0.26 |
| Buy 1 | Put | $95.00 | $0.44 |
PSR collar risk and reward
- Net Premium / Debit
- -$9,974.00
- Max Profit (per contract)
- $526.00
- Max Loss (per contract)
- -$474.00
- Breakeven(s)
- $99.74
- Risk / Reward Ratio
- 1.110
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$474.00 |
| $22.02 | -77.9% | -$474.00 |
| $44.03 | -55.8% | -$474.00 |
| $66.05 | -33.7% | -$474.00 |
| $88.06 | -11.6% | -$474.00 |
| $110.07 | +10.6% | +$526.00 |
| $132.08 | +32.7% | +$526.00 |
| $154.10 | +54.8% | +$526.00 |
| $176.11 | +76.9% | +$526.00 |
| $198.12 | +99.0% | +$526.00 |
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 $95.22 on the downside to $103.90 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 7.56% 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 PSR at 15.20%. 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 $99.56, 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 15.20%), the computed maximum profit is $526.00 per contract and the computed maximum loss is -$474.00 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 $99.74 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 4.36%; 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 15.20% with IV rank near 7.56%, 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.