How are RPV 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 RPV collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 11.80%), the computed maximum profit is $708.00 per contract and the computed maximum loss is -$592.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RPV collar?

The breakeven for the RPV collar priced on this page is roughly $122.92 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 RPV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RPV implied volatility affect this collar?

RPV ATM IV is at 11.80% with IV rank near 0.96%, 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.

RPV Collar Strategy

RPV (Invesco S&P 500 Pure Value ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The Invesco S&P 500 Pure Value ETF, identified by the symbol RPV, is designed to track the performance of the S&P 500 Pure Value Index. This fund is committed to investing a minimum of 90% of its total assets in the underlying securities that make up this index. The index itself aims to capture the returns of companies within the broader S&P 500 universe that prominently display strong "value" characteristics. Its methodology begins by evaluating every security in the S&P 500 and assigning it distinct "style scores" for both value and growth, based on inherent company attributes. The "value score" is derived from three financial ratios: book-value-to-price, earnings-to-price, and sales-to-price. Conversely, the "growth score" considers different factors, such as the three-year growth in sales per share, the three-year ratio of earnings per share change relative to price, and the stock's 12-month price momentum.

RPV (Invesco S&P 500 Pure Value ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $1.69B, a beta of 0.75 versus the broader market, a 52-week range of 94.28-121.61, average daily share volume of 173K, a public-listing history dating back to 2006. These structural characteristics shape how RPV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.75 places RPV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RPV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on RPV?

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.

RPV snapshot

As of August 14, 2026, spot at $122.93, ATM IV 11.80%, IV rank 0.96%, expected move 3.38%. The collar on RPV 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 RPV specifically: IV regime affects collar pricing on both sides; compressed RPV IV at 11.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.38% (roughly $4.16 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 RPV expiries trade a higher absolute premium for lower per-day decay. Position sizing on RPV should anchor to the underlying notional of $122.93 per share and to the trader's directional view on RPV etf.

RPV collar setup

The RPV 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 RPV at $122.93 on that close, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RPV 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 RPV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$122.93	long
Sell 1	Call	$130.00	$0.66
Buy 1	Put	$117.00	$0.65

RPV collar risk and reward

Net Premium / Debit: -$12,292.00
Max Profit (per contract): $708.00
Max Loss (per contract): -$592.00
Breakeven(s): $122.92
Risk / Reward Ratio: 1.196

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.

RPV collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on RPV. 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%	-$592.00
$27.19	-77.9%	-$592.00
$54.37	-55.8%	-$592.00
$81.55	-33.7%	-$592.00
$108.73	-11.6%	-$592.00
$135.91	+10.6%	+$708.00
$163.09	+32.7%	+$708.00
$190.27	+54.8%	+$708.00
$217.45	+76.9%	+$708.00
$244.62	+99.0%	+$708.00

When traders use collar on RPV

Collars on RPV hedge an existing long RPV 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.

RPV thesis for this collar

The market-implied 1-standard-deviation range for RPV extends from approximately $118.77 on the downside to $127.09 on the upside. A RPV collar hedges an existing long RPV 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 RPV IV rank near 0.96% 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 RPV at 11.80%. As a Financial Services name, RPV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RPV-specific events.

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

Frequently asked questions

What is a collar on RPV?: A collar on RPV is the collar strategy applied to RPV (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 RPV etf at $122.93 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RPV chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RPV 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 RPV collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 11.80%), the computed maximum profit is $708.00 per contract and the computed maximum loss is -$592.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RPV collar?: The breakeven for the RPV collar priced on this page is roughly $122.92 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 RPV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on RPV?: Collars on RPV hedge an existing long RPV 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 RPV implied volatility affect this collar?: RPV ATM IV is at 11.80% with IV rank near 0.96%, 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.