RFV Collar Strategy
RFV (Invesco S&P MidCap 400 Pure Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco S&P MidCap 400 Pure Value ETF (Fund) is based on the S&P MidCap 400 Pure Value Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index measures the performance of securities that exhibit strong value characteristics in the S&P MidCap 400 Index. Value is measured by the following risk factors: book value-to-price ratio, earnings-to-price ratio and sales-to-price ratio. The Fund and the Index are rebalanced annually.
RFV (Invesco S&P MidCap 400 Pure Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $309.1M, a beta of 1.21 versus the broader market, a 52-week range of 113.53-142.77, average daily share volume of 7K, a public-listing history dating back to 2006. These structural characteristics shape how RFV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.21 places RFV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RFV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on RFV?
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 RFV snapshot
As of May 15, 2026, spot at $135.91, ATM IV 21.50%, IV rank 35.79%, expected move 6.16%. The collar on RFV 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 RFV specifically: IV regime affects collar pricing on both sides; mid-range RFV IV at 21.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.16% (roughly $8.38 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 RFV expiries trade a higher absolute premium for lower per-day decay. Position sizing on RFV should anchor to the underlying notional of $135.91 per share and to the trader's directional view on RFV etf.
RFV collar setup
The RFV 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 RFV near $135.91, the first option leg uses a $143.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RFV 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 RFV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $135.91 | long |
| Sell 1 | Call | $143.00 | $1.01 |
| Buy 1 | Put | $129.00 | $1.12 |
RFV collar risk and reward
- Net Premium / Debit
- -$13,602.00
- Max Profit (per contract)
- $698.00
- Max Loss (per contract)
- -$702.00
- Breakeven(s)
- $136.02
- Risk / Reward Ratio
- 0.994
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.
RFV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RFV. 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% | -$702.00 |
| $30.06 | -77.9% | -$702.00 |
| $60.11 | -55.8% | -$702.00 |
| $90.16 | -33.7% | -$702.00 |
| $120.21 | -11.6% | -$702.00 |
| $150.26 | +10.6% | +$698.00 |
| $180.31 | +32.7% | +$698.00 |
| $210.36 | +54.8% | +$698.00 |
| $240.40 | +76.9% | +$698.00 |
| $270.45 | +99.0% | +$698.00 |
When traders use collar on RFV
Collars on RFV hedge an existing long RFV 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.
RFV thesis for this collar
The market-implied 1-standard-deviation range for RFV extends from approximately $127.53 on the downside to $144.29 on the upside. A RFV collar hedges an existing long RFV 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 RFV IV rank near 35.79% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on RFV should anchor more to the directional view and the expected-move geometry. As a Financial Services name, RFV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RFV-specific events.
RFV 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. RFV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RFV alongside the broader basket even when RFV-specific fundamentals are unchanged. Always rebuild the position from current RFV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RFV?
- A collar on RFV is the collar strategy applied to RFV (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 RFV etf trading near $135.91, the strikes shown on this page are snapped to the nearest listed RFV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RFV 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 RFV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 21.50%), the computed maximum profit is $698.00 per contract and the computed maximum loss is -$702.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RFV collar?
- The breakeven for the RFV collar priced on this page is roughly $136.02 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 RFV market-implied 1-standard-deviation expected move is approximately 6.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RFV?
- Collars on RFV hedge an existing long RFV 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 RFV implied volatility affect this collar?
- RFV ATM IV is at 21.50% with IV rank near 35.79%, 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.