How are PXJ 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 PXJ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 65.20%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PXJ collar?

The breakeven for the PXJ collar priced on this page is roughly $38.75 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 PXJ market-implied 1-standard-deviation expected move is approximately 18.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PXJ implied volatility affect this collar?

PXJ ATM IV is at 65.20% with IV rank near 62.65%, 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.

PXJ Collar Strategy

PXJ (Invesco Oil & Gas Services ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Invesco Oil & Gas Services ETF (PXJ) is an investment fund designed to mirror the performance of the Dynamic Oil Services Intellidex Index (the Index). Ordinarily, the ETF allocates a minimum of 90% of its total assets to the common equity securities that constitute this underlying index. The Index employs a rigorous methodology to select its constituents, evaluating companies based on a diverse set of investment merits, such as price momentum, earnings momentum, quality, management effectiveness, and valuation. Comprising 30 U.S.-based firms, the Index focuses on companies central to the oil and gas value chain – from exploration and extraction to processing and distribution. This encompasses businesses involved in drilling operations, manufacturing specialized oil and gas field equipment, or providing essential services to the sector. Such services may range from well analysis, platform and pipeline engineering and construction, logistics and transportation, to emergency management for wells and geophysical data acquisition and processing.

PXJ (Invesco Oil & Gas Services ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $29.2M, a beta of 0.70 versus the broader market, a 52-week range of 23.52-47.11, average daily share volume of 27K, a public-listing history dating back to 2005. These structural characteristics shape how PXJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.70 places PXJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PXJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PXJ?

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 PXJ snapshot

As of June 29, 2026, spot at $38.65, ATM IV 65.20%, IV rank 62.65%, expected move 18.69%. The collar on PXJ 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 18-day expiry.

Why this collar structure on PXJ specifically: IV regime affects collar pricing on both sides; mid-range PXJ IV at 65.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.69% (roughly $7.22 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PXJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on PXJ should anchor to the underlying notional of $38.65 per share and to the trader's directional view on PXJ etf.

PXJ collar setup

The PXJ 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 PXJ near $38.65, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PXJ chain at a 18-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 PXJ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$38.65	long
Sell 1	Call	$41.00	$0.95
Buy 1	Put	$37.00	$1.05

PXJ collar risk and reward

Net Premium / Debit: -$3,875.00
Max Profit (per contract): $225.00
Max Loss (per contract): -$175.00
Breakeven(s): $38.75
Risk / Reward Ratio: 1.286

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.

PXJ collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PXJ. 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%	-$175.00
$8.55	-77.9%	-$175.00
$17.10	-55.8%	-$175.00
$25.64	-33.7%	-$175.00
$34.19	-11.5%	-$175.00
$42.73	+10.6%	+$225.00
$51.28	+32.7%	+$225.00
$59.82	+54.8%	+$225.00
$68.37	+76.9%	+$225.00
$76.91	+99.0%	+$225.00

When traders use collar on PXJ

Collars on PXJ hedge an existing long PXJ 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.

PXJ thesis for this collar

The market-implied 1-standard-deviation range for PXJ extends from approximately $31.43 on the downside to $45.87 on the upside. A PXJ collar hedges an existing long PXJ 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 PXJ IV rank near 62.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PXJ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PXJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PXJ-specific events.

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

Frequently asked questions

What is a collar on PXJ?: A collar on PXJ is the collar strategy applied to PXJ (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 PXJ etf trading near $38.65, the strikes shown on this page are snapped to the nearest listed PXJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PXJ 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 PXJ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 65.20%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PXJ collar?: The breakeven for the PXJ collar priced on this page is roughly $38.75 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 PXJ market-implied 1-standard-deviation expected move is approximately 18.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PXJ?: Collars on PXJ hedge an existing long PXJ 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 PXJ implied volatility affect this collar?: PXJ ATM IV is at 65.20% with IV rank near 62.65%, 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.