SPHD Collar Strategy
SPHD (Invesco S&P 500 High Dividend Low Volatility ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco S&P 500 High Dividend Low Volatility ETF (Fund) is based on the S&P 500 Low Volatility High Dividend Index (Index). The Fund will invest at least 90% of its total assets in common stocks that comprise the Index. Standard & Poor's compiles, maintains and calculates the Index, which is composed of 50 securities traded on the S&P 500 Index that historically have provided high dividend yields and low volatility. The Fund and the Index are rebalanced and reconstituted semi-annually, in January and July.
SPHD (Invesco S&P 500 High Dividend Low Volatility ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.30B, a beta of 0.55 versus the broader market, a 52-week range of 46.385-53.07, average daily share volume of 855K, a public-listing history dating back to 2012. These structural characteristics shape how SPHD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.55 indicates SPHD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SPHD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SPHD?
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 SPHD snapshot
As of May 15, 2026, spot at $49.13, ATM IV 17.30%, IV rank 2.03%, expected move 4.96%. The collar on SPHD 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 SPHD specifically: IV regime affects collar pricing on both sides; compressed SPHD IV at 17.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.96% (roughly $2.44 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 SPHD expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPHD should anchor to the underlying notional of $49.13 per share and to the trader's directional view on SPHD etf.
SPHD collar setup
The SPHD 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 SPHD near $49.13, the first option leg uses a $51.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPHD 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 SPHD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $49.13 | long |
| Sell 1 | Call | $51.59 | N/A |
| Buy 1 | Put | $46.67 | N/A |
SPHD collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
SPHD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SPHD. 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.
When traders use collar on SPHD
Collars on SPHD hedge an existing long SPHD 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.
SPHD thesis for this collar
The market-implied 1-standard-deviation range for SPHD extends from approximately $46.69 on the downside to $51.57 on the upside. A SPHD collar hedges an existing long SPHD 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 SPHD IV rank near 2.03% 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 SPHD at 17.30%. As a Financial Services name, SPHD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPHD-specific events.
SPHD 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. SPHD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SPHD alongside the broader basket even when SPHD-specific fundamentals are unchanged. Always rebuild the position from current SPHD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SPHD?
- A collar on SPHD is the collar strategy applied to SPHD (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 SPHD etf trading near $49.13, the strikes shown on this page are snapped to the nearest listed SPHD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SPHD 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 SPHD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 17.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SPHD collar?
- The breakeven for the SPHD collar priced on this page is no defined breakeven on the modeled curve 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 SPHD market-implied 1-standard-deviation expected move is approximately 4.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SPHD?
- Collars on SPHD hedge an existing long SPHD 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 SPHD implied volatility affect this collar?
- SPHD ATM IV is at 17.30% with IV rank near 2.03%, 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.