How are PSWD 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 PSWD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.40%), the computed maximum profit is $249.00 per contract and the computed maximum loss is -$151.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSWD collar?

The breakeven for the PSWD collar priced on this page is roughly $47.51 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PSWD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSWD implied volatility affect this collar?

PSWD ATM IV is at 29.40% with IV rank near 8.43%, 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.

PSWD Collar Strategy

PSWD (Xtrackers Cybersecurity Select Equity ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

DBX ETF Trust - Xtrackers Cybersecurity Select Equity ETF is an exchange traded fund launched and managed by DBX Advisors LLC. The fund invests in public equity markets of global region. It invests in stocks of companies operating across information technology, cybersecurity including carrier edge network management equipment, customer premises network security equipment, colocation and data center services, network security access policy software and network security software sectors. The fund invests in growth and value stocks of large-cap companies. It invests in stocks of companies that are deemed socially conscious in their business dealings and directly promote environmental responsibility. It seeks to track the performance of the Solactive Cyber Security ESG Screened Index, by using full replication technique.

PSWD (Xtrackers Cybersecurity Select Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.2M, a beta of 1.06 versus the broader market, a 52-week range of 28.72-47.7221, average daily share volume of 2K, a public-listing history dating back to 2023, approximately 1 full-time employees. These structural characteristics shape how PSWD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.06 places PSWD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PSWD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PSWD?

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.

PSWD snapshot

As of August 14, 2026, spot at $47.95, ATM IV 29.40%, IV rank 8.43%, expected move 8.43%. The collar on PSWD below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on PSWD specifically: IV regime affects collar pricing on both sides; compressed PSWD IV at 29.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.43% (roughly $4.04 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PSWD expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSWD should anchor to the underlying notional of $47.95 per share and to the trader's directional view on PSWD etf.

PSWD collar setup

The PSWD collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PSWD at $47.95 on that close, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSWD chain at a 35-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 PSWD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$47.95	long
Sell 1	Call	$50.00	$1.18
Buy 1	Put	$46.00	$0.74

PSWD collar risk and reward

Net Premium / Debit: -$4,751.00
Max Profit (per contract): $249.00
Max Loss (per contract): -$151.00
Breakeven(s): $47.51
Risk / Reward Ratio: 1.649

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.

PSWD collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PSWD. 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%	-$151.00
$10.61	-77.9%	-$151.00
$21.21	-55.8%	-$151.00
$31.81	-33.7%	-$151.00
$42.41	-11.5%	-$151.00
$53.01	+10.6%	+$249.00
$63.62	+32.7%	+$249.00
$74.22	+54.8%	+$249.00
$84.82	+76.9%	+$249.00
$95.42	+99.0%	+$249.00

When traders use collar on PSWD

Collars on PSWD hedge an existing long PSWD 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.

PSWD thesis for this collar

The market-implied 1-standard-deviation range for PSWD extends from approximately $43.91 on the downside to $51.99 on the upside. A PSWD collar hedges an existing long PSWD 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 PSWD IV rank near 8.43% 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 PSWD at 29.40%. As a Financial Services name, PSWD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSWD-specific events.

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

Frequently asked questions

What is a collar on PSWD?: A collar on PSWD is the collar strategy applied to PSWD (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 PSWD etf at $47.95 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PSWD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PSWD 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 PSWD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.40%), the computed maximum profit is $249.00 per contract and the computed maximum loss is -$151.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSWD collar?: The breakeven for the PSWD collar priced on this page is roughly $47.51 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PSWD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PSWD?: Collars on PSWD hedge an existing long PSWD 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 PSWD implied volatility affect this collar?: PSWD ATM IV is at 29.40% with IV rank near 8.43%, 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.