How are SVOL 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 SVOL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.50%), the computed maximum profit is $88.50 per contract and the computed maximum loss is -$111.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SVOL collar?

The breakeven for the SVOL collar priced on this page is roughly $16.12 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 SVOL market-implied 1-standard-deviation expected move is approximately 3.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SVOL implied volatility affect this collar?

SVOL ATM IV is at 58.50% with IV rank near 12.80%, 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.

SVOL Collar Strategy

SVOL (Simplify Volatility Premium ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Simplify Volatility Premium ETF (SVOL) seeks to provide investment results, before fees and expenses, that correspond to approximately one-fifth to three-tenths (-0.2x to -0.3x) the inverse of the performance of the Cboe Volatility Index (VIX) short-term futures index while also seeking to mitigate extreme volatility. We believe many traditional sources of income are failing to meet investor needs in today’s low yield environment. SVOL aims to provide an attractive income stream and source of diversification while seeking to avoid risks inherent in other income-producing asset classes. The fund’s short VIX position provides investors an optimized exposure for monetizing the premium in the VIX futures market. A modest option overlay budget is then deployed into VIX call options to help protect against adverse moves in VIX.

SVOL (Simplify Volatility Premium ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $587.5M, a beta of 0.80 versus the broader market, a 52-week range of 15.06-20.06, average daily share volume of 426K, a public-listing history dating back to 2021. These structural characteristics shape how SVOL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.80 places SVOL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SVOL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on SVOL?

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 SVOL snapshot

As of May 15, 2026, spot at $15.95, ATM IV 58.50%, IV rank 12.80%, expected move 3.90%. The collar on SVOL 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 SVOL specifically: IV regime affects collar pricing on both sides; compressed SVOL IV at 58.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.90% (roughly $0.62 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 SVOL expiries trade a higher absolute premium for lower per-day decay. Position sizing on SVOL should anchor to the underlying notional of $15.95 per share and to the trader's directional view on SVOL etf.

SVOL collar setup

The SVOL 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 SVOL near $15.95, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SVOL 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 SVOL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$15.95	long
Sell 1	Call	$17.00	$0.01
Buy 1	Put	$15.00	$0.18

SVOL collar risk and reward

Net Premium / Debit: -$1,611.50
Max Profit (per contract): $88.50
Max Loss (per contract): -$111.50
Breakeven(s): $16.12
Risk / Reward Ratio: 0.794

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.

SVOL collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SVOL. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$111.50
$3.54	-77.8%	-$111.50
$7.06	-55.7%	-$111.50
$10.59	-33.6%	-$111.50
$14.11	-11.5%	-$111.50
$17.64	+10.6%	+$88.50
$21.16	+32.7%	+$88.50
$24.69	+54.8%	+$88.50
$28.21	+76.9%	+$88.50
$31.74	+99.0%	+$88.50

When traders use collar on SVOL

Collars on SVOL hedge an existing long SVOL 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.

SVOL thesis for this collar

The market-implied 1-standard-deviation range for SVOL extends from approximately $15.33 on the downside to $16.57 on the upside. A SVOL collar hedges an existing long SVOL 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 SVOL IV rank near 12.80% 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 SVOL at 58.50%. As a Financial Services name, SVOL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SVOL-specific events.

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

Frequently asked questions

What is a collar on SVOL?: A collar on SVOL is the collar strategy applied to SVOL (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 SVOL etf trading near $15.95, the strikes shown on this page are snapped to the nearest listed SVOL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SVOL 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 SVOL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.50%), the computed maximum profit is $88.50 per contract and the computed maximum loss is -$111.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SVOL collar?: The breakeven for the SVOL collar priced on this page is roughly $16.12 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 SVOL market-implied 1-standard-deviation expected move is approximately 3.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SVOL?: Collars on SVOL hedge an existing long SVOL 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 SVOL implied volatility affect this collar?: SVOL ATM IV is at 58.50% with IV rank near 12.80%, 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.