How are SPHB 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 SPHB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.40%), the computed maximum profit is $737.50 per contract and the computed maximum loss is -$762.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SPHB collar?

The breakeven for the SPHB collar priced on this page is roughly $152.63 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 SPHB market-implied 1-standard-deviation expected move is approximately 8.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SPHB implied volatility affect this collar?

SPHB ATM IV is at 30.40% with IV rank near 62.95%, 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.

SPHB Collar Strategy

SPHB (Invesco S&P 500 High Beta ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The Invesco S&P 500 High Beta ETF, referred to as the Fund, aims to mirror the performance of the S&P 500 High Beta Index. Its investment mandate requires that a minimum of 90% of its total assets be allocated to the securities constituting this underlying index. Standard & Poor's is responsible for the compilation, maintenance, and calculation of the Index. This benchmark is comprised of the 100 stocks from the broader S&P 500 Index that have exhibited the greatest sensitivity to market fluctuations, known as "beta," over the preceding twelve-month period. Beta itself serves as a metric for relative risk, quantifying how a security's price tends to change in response to overall market movements. Both the Fund's portfolio and the Index undergo regular rebalancing and reconstitution on a quarterly basis, specifically in February, May, August, and November.

SPHB (Invesco S&P 500 High Beta ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $1.03B, a beta of 1.60 versus the broader market, a 52-week range of 96.46-157.57, average daily share volume of 392K, a public-listing history dating back to 2011. These structural characteristics shape how SPHB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.60 indicates SPHB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SPHB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on SPHB?

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 SPHB snapshot

As of June 29, 2026, spot at $153.05, ATM IV 30.40%, IV rank 62.95%, expected move 8.72%. The collar on SPHB 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 17-day expiry.

Why this collar structure on SPHB specifically: IV regime affects collar pricing on both sides; mid-range SPHB IV at 30.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.72% (roughly $13.34 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SPHB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPHB should anchor to the underlying notional of $153.05 per share and to the trader's directional view on SPHB etf.

SPHB collar setup

The SPHB 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 SPHB near $153.05, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPHB chain at a 17-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 SPHB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$153.05	long
Sell 1	Call	$160.00	$2.23
Buy 1	Put	$145.00	$1.80

SPHB collar risk and reward

Net Premium / Debit: -$15,262.50
Max Profit (per contract): $737.50
Max Loss (per contract): -$762.50
Breakeven(s): $152.63
Risk / Reward Ratio: 0.967

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.

SPHB collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SPHB. 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%	-$762.50
$33.85	-77.9%	-$762.50
$67.69	-55.8%	-$762.50
$101.53	-33.7%	-$762.50
$135.37	-11.6%	-$762.50
$169.21	+10.6%	+$737.50
$203.04	+32.7%	+$737.50
$236.88	+54.8%	+$737.50
$270.72	+76.9%	+$737.50
$304.56	+99.0%	+$737.50

When traders use collar on SPHB

Collars on SPHB hedge an existing long SPHB 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.

SPHB thesis for this collar

The market-implied 1-standard-deviation range for SPHB extends from approximately $139.71 on the downside to $166.39 on the upside. A SPHB collar hedges an existing long SPHB 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 SPHB IV rank near 62.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SPHB should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SPHB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPHB-specific events.

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

Frequently asked questions

What is a collar on SPHB?: A collar on SPHB is the collar strategy applied to SPHB (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 SPHB etf trading near $153.05, the strikes shown on this page are snapped to the nearest listed SPHB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SPHB 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 SPHB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.40%), the computed maximum profit is $737.50 per contract and the computed maximum loss is -$762.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SPHB collar?: The breakeven for the SPHB collar priced on this page is roughly $152.63 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 SPHB market-implied 1-standard-deviation expected move is approximately 8.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SPHB?: Collars on SPHB hedge an existing long SPHB 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 SPHB implied volatility affect this collar?: SPHB ATM IV is at 30.40% with IV rank near 62.95%, 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.