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 end-of-day chain at a 30-day expiry (ATM IV 19.00%), the computed maximum profit is $623.50 per contract and the computed maximum loss is -$576.50 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 $113.77 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 RPV market-implied 1-standard-deviation expected move is approximately 5.45%; 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 19.00% with IV rank near 6.05%, 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 $1.82B, a beta of 0.80 versus the broader market, a 52-week range of 90.3-117.16, average daily share volume of 150K, 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 0.80 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.

Current RPV snapshot

As of June 30, 2026, spot at $113.84, ATM IV 19.00%, IV rank 6.05%, expected move 5.45%. The collar on RPV 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 171-day expiry.

Why this collar structure on RPV specifically: IV regime affects collar pricing on both sides; compressed RPV IV at 19.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.45% (roughly $6.20 on the underlying). The 171-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 $113.84 per share and to the trader's directional view on RPV etf.

RPV collar setup

The RPV 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 RPV near $113.84, the first option leg uses a $120.00 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 171-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	$113.84	long
Sell 1	Call	$120.00	$3.15
Buy 1	Put	$108.00	$3.08

RPV collar risk and reward

Net Premium / Debit: -$11,376.50
Max Profit (per contract): $623.50
Max Loss (per contract): -$576.50
Breakeven(s): $113.77
Risk / Reward Ratio: 1.082

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%	-$576.50
$25.18	-77.9%	-$576.50
$50.35	-55.8%	-$576.50
$75.52	-33.7%	-$576.50
$100.69	-11.6%	-$576.50
$125.86	+10.6%	+$623.50
$151.03	+32.7%	+$623.50
$176.20	+54.8%	+$623.50
$201.37	+76.9%	+$623.50
$226.54	+99.0%	+$623.50

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 $107.64 on the downside to $120.04 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 6.05% 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 19.00%. 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 trading near $113.84, the strikes shown on this page are snapped to the nearest listed RPV chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 19.00%), the computed maximum profit is $623.50 per contract and the computed maximum loss is -$576.50 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 $113.77 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 RPV market-implied 1-standard-deviation expected move is approximately 5.45%; 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 19.00% with IV rank near 6.05%, 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.