VOE Collar Strategy
VOE (Vanguard Mid-Cap Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Seeks to track the performance of the CRSP US Mid Cap Value Index, which measures the investment return of mid-capitalization value stocks. Provides a convenient way to match the performance of a diversified group of midsize value companies. Follows a passively managed, full-replication approach.
VOE (Vanguard Mid-Cap Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $36.72B, a beta of 0.86 versus the broader market, a 52-week range of 158.32-195.18, average daily share volume of 330K, a public-listing history dating back to 2006. These structural characteristics shape how VOE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places VOE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VOE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on VOE?
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 VOE snapshot
As of May 15, 2026, spot at $190.81, ATM IV 15.50%, IV rank 23.97%, expected move 4.44%. The collar on VOE 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 VOE specifically: IV regime affects collar pricing on both sides; compressed VOE IV at 15.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.44% (roughly $8.48 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 VOE expiries trade a higher absolute premium for lower per-day decay. Position sizing on VOE should anchor to the underlying notional of $190.81 per share and to the trader's directional view on VOE etf.
VOE collar setup
The VOE 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 VOE near $190.81, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VOE 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 VOE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $190.81 | long |
| Sell 1 | Call | $200.00 | $1.26 |
| Buy 1 | Put | $181.00 | $0.60 |
VOE collar risk and reward
- Net Premium / Debit
- -$19,015.00
- Max Profit (per contract)
- $985.00
- Max Loss (per contract)
- -$915.00
- Breakeven(s)
- $190.15
- Risk / Reward Ratio
- 1.077
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.
VOE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VOE. 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% | -$915.00 |
| $42.20 | -77.9% | -$915.00 |
| $84.39 | -55.8% | -$915.00 |
| $126.57 | -33.7% | -$915.00 |
| $168.76 | -11.6% | -$915.00 |
| $210.95 | +10.6% | +$985.00 |
| $253.14 | +32.7% | +$985.00 |
| $295.33 | +54.8% | +$985.00 |
| $337.51 | +76.9% | +$985.00 |
| $379.70 | +99.0% | +$985.00 |
When traders use collar on VOE
Collars on VOE hedge an existing long VOE 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.
VOE thesis for this collar
The market-implied 1-standard-deviation range for VOE extends from approximately $182.33 on the downside to $199.29 on the upside. A VOE collar hedges an existing long VOE 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 VOE IV rank near 23.97% 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 VOE at 15.50%. As a Financial Services name, VOE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VOE-specific events.
VOE 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. VOE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VOE alongside the broader basket even when VOE-specific fundamentals are unchanged. Always rebuild the position from current VOE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VOE?
- A collar on VOE is the collar strategy applied to VOE (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 VOE etf trading near $190.81, the strikes shown on this page are snapped to the nearest listed VOE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VOE 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 VOE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 15.50%), the computed maximum profit is $985.00 per contract and the computed maximum loss is -$915.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VOE collar?
- The breakeven for the VOE collar priced on this page is roughly $190.15 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 VOE market-implied 1-standard-deviation expected move is approximately 4.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VOE?
- Collars on VOE hedge an existing long VOE 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 VOE implied volatility affect this collar?
- VOE ATM IV is at 15.50% with IV rank near 23.97%, 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.