How are VFQY 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 VFQY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 11.70%), the computed maximum profit is $927.00 per contract and the computed maximum loss is -$873.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VFQY collar?

The breakeven for the VFQY collar priced on this page is roughly $170.73 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 VFQY market-implied 1-standard-deviation expected move is approximately 3.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VFQY implied volatility affect this collar?

VFQY ATM IV is at 11.70% with IV rank near 0.37%, 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.

VFQY Collar Strategy

VFQY (Vanguard U.S. Quality Factor ETF), in the Financial Services sector, (Asset Management - Global industry), listed on CBOE.

This ETF employs a systematic, rules-based quantitative model to identify U.S. common stocks for investment. The strategy focuses on selecting companies with strong underlying financial characteristics, typically showcasing robust profitability and sound balance sheets. The resulting portfolio is broadly diversified, encompassing a range of market capitalizations (including large, mid, and small companies), numerous sectors, and various industry groups. The primary objective is to achieve long-term capital growth. As a standard practice, at least 80% of the fund's assets will be allocated to securities issued by U.S. companies. The "Quality" factor, central to its selection methodology, is assessed using metrics such as operating and gross profitability, changes in net operating assets, and intangibles intensity for non-financial stocks, while for financial institutions, it considers operating profitability and equity issuance.

VFQY (Vanguard U.S. Quality Factor ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $463.0M, a beta of 0.97 versus the broader market, a 52-week range of 141.78-169.66, average daily share volume of 7K, a public-listing history dating back to 2018. These structural characteristics shape how VFQY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.97 places VFQY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VFQY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on VFQY?

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 VFQY snapshot

As of June 30, 2026, spot at $170.66, ATM IV 11.70%, IV rank 0.37%, expected move 3.35%. The collar on VFQY 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 VFQY specifically: IV regime affects collar pricing on both sides; compressed VFQY IV at 11.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.35% (roughly $5.72 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 VFQY expiries trade a higher absolute premium for lower per-day decay. Position sizing on VFQY should anchor to the underlying notional of $170.66 per share and to the trader's directional view on VFQY etf.

VFQY collar setup

The VFQY 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 VFQY near $170.66, the first option leg uses a $180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VFQY 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 VFQY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$170.66	long
Sell 1	Call	$180.00	$0.02
Buy 1	Put	$162.00	$0.09

VFQY collar risk and reward

Net Premium / Debit: -$17,073.00
Max Profit (per contract): $927.00
Max Loss (per contract): -$873.00
Breakeven(s): $170.73
Risk / Reward Ratio: 1.062

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.

VFQY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on VFQY. 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%	-$873.00
$37.74	-77.9%	-$873.00
$75.48	-55.8%	-$873.00
$113.21	-33.7%	-$873.00
$150.94	-11.6%	-$873.00
$188.67	+10.6%	+$927.00
$226.41	+32.7%	+$927.00
$264.14	+54.8%	+$927.00
$301.87	+76.9%	+$927.00
$339.60	+99.0%	+$927.00

When traders use collar on VFQY

Collars on VFQY hedge an existing long VFQY 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.

VFQY thesis for this collar

The market-implied 1-standard-deviation range for VFQY extends from approximately $164.94 on the downside to $176.38 on the upside. A VFQY collar hedges an existing long VFQY 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 VFQY IV rank near 0.37% 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 VFQY at 11.70%. As a Financial Services name, VFQY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VFQY-specific events.

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

Frequently asked questions

What is a collar on VFQY?: A collar on VFQY is the collar strategy applied to VFQY (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 VFQY etf trading near $170.66, the strikes shown on this page are snapped to the nearest listed VFQY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VFQY 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 VFQY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 11.70%), the computed maximum profit is $927.00 per contract and the computed maximum loss is -$873.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VFQY collar?: The breakeven for the VFQY collar priced on this page is roughly $170.73 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 VFQY market-implied 1-standard-deviation expected move is approximately 3.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on VFQY?: Collars on VFQY hedge an existing long VFQY 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 VFQY implied volatility affect this collar?: VFQY ATM IV is at 11.70% with IV rank near 0.37%, 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.