How are SCHI 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 SCHI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 450.00%), the computed maximum profit is $89.00 per contract and the computed maximum loss is -$111.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SCHI collar?

The breakeven for the SCHI collar priced on this page is roughly $22.11 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 SCHI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 129.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SCHI implied volatility affect this collar?

SCHI ATM IV is at 450.00% with IV rank near 99.98%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

SCHI Collar Strategy

SCHI (Schwab 5-10 Year Corporate Bond ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

To pursue its goal, the fund generally invests in securities that are included in the index. The index measures the performance of U.S. investment grade, taxable corporate bonds with maturities greater than or equal to five years and less than ten years that have $300 million or more of outstanding face value. It is the fund's policy that under normal circumstances it will invest at least 90% of its net assets in securities included in the index.

SCHI (Schwab 5-10 Year Corporate Bond ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.59B, a beta of 1.06 versus the broader market, a 52-week range of 22.19-23.278, average daily share volume of 2.7M, a public-listing history dating back to 2019. These structural characteristics shape how SCHI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

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

What is a collar on SCHI?

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.

SCHI snapshot

As of August 14, 2026, spot at $22.24, ATM IV 450.00%, IV rank 99.98%, expected move 129.01%. The collar on SCHI 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 SCHI specifically: IV regime affects collar pricing on both sides; elevated SCHI IV at 450.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 129.01% (roughly $28.69 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 SCHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCHI should anchor to the underlying notional of $22.24 per share and to the trader's directional view on SCHI etf.

SCHI collar setup

The SCHI 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 SCHI at $22.24 on that close, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCHI 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 SCHI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$22.24	long
Sell 1	Call	$23.00	$0.32
Buy 1	Put	$21.00	$0.19

SCHI collar risk and reward

Net Premium / Debit: -$2,211.00
Max Profit (per contract): $89.00
Max Loss (per contract): -$111.00
Breakeven(s): $22.11
Risk / Reward Ratio: 0.802

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.

SCHI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SCHI. 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%	-$111.00
$4.93	-77.8%	-$111.00
$9.84	-55.7%	-$111.00
$14.76	-33.6%	-$111.00
$19.68	-11.5%	-$111.00
$24.59	+10.6%	+$89.00
$29.51	+32.7%	+$89.00
$34.42	+54.8%	+$89.00
$39.34	+76.9%	+$89.00
$44.26	+99.0%	+$89.00

When traders use collar on SCHI

Collars on SCHI hedge an existing long SCHI 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.

SCHI thesis for this collar

The market-implied 1-standard-deviation range for SCHI extends from approximately $-6.45 on the downside to $50.93 on the upside. A SCHI collar hedges an existing long SCHI 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 SCHI IV rank near 99.98% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SCHI at 450.00%. As a Financial Services name, SCHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCHI-specific events.

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

Frequently asked questions

What is a collar on SCHI?: A collar on SCHI is the collar strategy applied to SCHI (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 SCHI etf at $22.24 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SCHI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SCHI 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 SCHI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 450.00%), the computed maximum profit is $89.00 per contract and the computed maximum loss is -$111.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SCHI collar?: The breakeven for the SCHI collar priced on this page is roughly $22.11 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 SCHI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 129.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SCHI?: Collars on SCHI hedge an existing long SCHI 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 SCHI implied volatility affect this collar?: SCHI ATM IV is at 450.00% with IV rank near 99.98%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.