How are SPHQ 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 SPHQ collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 14.80%), the computed maximum profit is $458.00 per contract and the computed maximum loss is -$442.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SPHQ collar?

The breakeven for the SPHQ collar priced on this page is roughly $87.42 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 SPHQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SPHQ implied volatility affect this collar?

SPHQ ATM IV is at 14.80% with IV rank near 10.53%, 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.

SPHQ Collar Strategy

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

The Invesco S&P 500 Quality ETF (referred to as the Fund) is designed to replicate the investment performance of the S&P 500 Quality Index. The Fund typically allocates at least 90% of its total assets to the common stocks that constitute this Index. The underlying Index is composed of S&P 500 stocks identified by their top "quality score," which is systematically calculated based on three fundamental financial indicators: return on equity, accruals ratio, and financial leverage ratio. Both the Fund and its benchmark Index are rebalanced and reconstituted twice a year, specifically on the third Friday of June and December. As of August 31, 2025, the Fund has achieved strong Morningstar ratings. It received an impressive overall rating of 5 stars, placing it among 1,252 funds.

SPHQ (Invesco S&P 500 Quality ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $20.69B, a beta of 0.81 versus the broader market, a 52-week range of 71.4-90.36, average daily share volume of 1.6M, a public-listing history dating back to 2005. These structural characteristics shape how SPHQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.81 places SPHQ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SPHQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on SPHQ?

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.

SPHQ snapshot

As of August 14, 2026, spot at $87.48, ATM IV 14.80%, IV rank 10.53%, expected move 4.24%. The collar on SPHQ 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 63-day expiry.

Why this collar structure on SPHQ specifically: IV regime affects collar pricing on both sides; compressed SPHQ IV at 14.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.24% (roughly $3.71 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SPHQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPHQ should anchor to the underlying notional of $87.48 per share and to the trader's directional view on SPHQ etf.

SPHQ collar setup

The SPHQ 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 SPHQ at $87.48 on that close, the first option leg uses a $92.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPHQ chain at a 63-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 SPHQ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$87.48	long
Sell 1	Call	$92.00	$0.81
Buy 1	Put	$83.00	$0.75

SPHQ collar risk and reward

Net Premium / Debit: -$8,742.00
Max Profit (per contract): $458.00
Max Loss (per contract): -$442.00
Breakeven(s): $87.42
Risk / Reward Ratio: 1.036

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.

SPHQ collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SPHQ. 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%	-$442.00
$19.35	-77.9%	-$442.00
$38.69	-55.8%	-$442.00
$58.03	-33.7%	-$442.00
$77.37	-11.6%	-$442.00
$96.72	+10.6%	+$458.00
$116.06	+32.7%	+$458.00
$135.40	+54.8%	+$458.00
$154.74	+76.9%	+$458.00
$174.08	+99.0%	+$458.00

When traders use collar on SPHQ

Collars on SPHQ hedge an existing long SPHQ 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.

SPHQ thesis for this collar

The market-implied 1-standard-deviation range for SPHQ extends from approximately $83.77 on the downside to $91.19 on the upside. A SPHQ collar hedges an existing long SPHQ 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 SPHQ IV rank near 10.53% 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 SPHQ at 14.80%. As a Financial Services name, SPHQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPHQ-specific events.

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

Frequently asked questions

What is a collar on SPHQ?: A collar on SPHQ is the collar strategy applied to SPHQ (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 SPHQ etf at $87.48 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SPHQ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SPHQ 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 SPHQ collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 14.80%), the computed maximum profit is $458.00 per contract and the computed maximum loss is -$442.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SPHQ collar?: The breakeven for the SPHQ collar priced on this page is roughly $87.42 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 SPHQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SPHQ?: Collars on SPHQ hedge an existing long SPHQ 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 SPHQ implied volatility affect this collar?: SPHQ ATM IV is at 14.80% with IV rank near 10.53%, 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.