VBK Collar Strategy
VBK (Vanguard Small-Cap Growth ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Vanguard Index Funds - Vanguard Small-Cap Growth ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. It invests in public equity markets of the United States. The fund invests in stocks of companies operating across diversified sectors. It invests in growth stocks of small-cap companies. It seeks to track the performance of the CRSP US Small Cap Growth Index and Dow Jones U.S. Total Stock Market Float Adjusted Index, by using full replication technique.
VBK (Vanguard Small-Cap Growth ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $45.54B, a beta of 1.32 versus the broader market, a 52-week range of 273.57-361.58, average daily share volume of 242K, a public-listing history dating back to 2004. These structural characteristics shape how VBK etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.32 indicates VBK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. VBK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on VBK?
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 VBK snapshot
As of June 30, 2026, spot at $365.84, ATM IV 20.60%, IV rank 16.96%, expected move 5.91%. The collar on VBK 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 VBK specifically: IV regime affects collar pricing on both sides; compressed VBK IV at 20.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.91% (roughly $21.61 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 VBK expiries trade a higher absolute premium for lower per-day decay. Position sizing on VBK should anchor to the underlying notional of $365.84 per share and to the trader's directional view on VBK etf.
VBK collar setup
The VBK 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 VBK near $365.84, the first option leg uses a $385.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VBK 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 VBK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $365.84 | long |
| Sell 1 | Call | $385.00 | $0.44 |
| Buy 1 | Put | $350.00 | $2.78 |
VBK collar risk and reward
- Net Premium / Debit
- -$36,817.50
- Max Profit (per contract)
- $1,682.50
- Max Loss (per contract)
- -$1,817.50
- Breakeven(s)
- $368.18
- Risk / Reward Ratio
- 0.926
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.
VBK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VBK. 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 | -100.0% | -$1,817.50 |
| $80.90 | -77.9% | -$1,817.50 |
| $161.79 | -55.8% | -$1,817.50 |
| $242.67 | -33.7% | -$1,817.50 |
| $323.56 | -11.6% | -$1,817.50 |
| $404.45 | +10.6% | +$1,682.50 |
| $485.34 | +32.7% | +$1,682.50 |
| $566.23 | +54.8% | +$1,682.50 |
| $647.12 | +76.9% | +$1,682.50 |
| $728.00 | +99.0% | +$1,682.50 |
When traders use collar on VBK
Collars on VBK hedge an existing long VBK 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.
VBK thesis for this collar
The market-implied 1-standard-deviation range for VBK extends from approximately $344.23 on the downside to $387.45 on the upside. A VBK collar hedges an existing long VBK 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 VBK IV rank near 16.96% 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 VBK at 20.60%. As a Financial Services name, VBK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VBK-specific events.
VBK 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. VBK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VBK alongside the broader basket even when VBK-specific fundamentals are unchanged. Always rebuild the position from current VBK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VBK?
- A collar on VBK is the collar strategy applied to VBK (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 VBK etf trading near $365.84, the strikes shown on this page are snapped to the nearest listed VBK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VBK 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 VBK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 20.60%), the computed maximum profit is $1,682.50 per contract and the computed maximum loss is -$1,817.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VBK collar?
- The breakeven for the VBK collar priced on this page is roughly $368.18 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 VBK market-implied 1-standard-deviation expected move is approximately 5.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VBK?
- Collars on VBK hedge an existing long VBK 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 VBK implied volatility affect this collar?
- VBK ATM IV is at 20.60% with IV rank near 16.96%, 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.