How are VONE 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 VONE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 13.70%), the computed maximum profit is $1,606.00 per contract and the computed maximum loss is -$1,894.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VONE collar?

The breakeven for the VONE collar priced on this page is roughly $338.94 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 VONE market-implied 1-standard-deviation expected move is approximately 3.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VONE implied volatility affect this collar?

VONE ATM IV is at 13.70% with IV rank near 26.52%, 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.

VONE Collar Strategy

VONE (Vanguard Russell 1000 ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.

This exchange-traded fund (ETF) aims to replicate the performance of the Russell 1000 Index, a comprehensive benchmark composed of a wide array of prominent U.S. companies. The index itself is often regarded as a key indicator for large-capitalization U.S. stock returns, particularly those showing growth. While offering substantial potential for capital appreciation, its value tends to experience greater volatility compared to fixed-income investments. Consequently, it is best suited for investors with a long-term investment horizon for whom significant growth of their principal is a primary objective. Regarding 75% of its overall assets, the fund operates under specific investment restrictions: it cannot acquire more than 10% of the voting shares of any single company, nor can it hold more than 5% of its total assets in the securities of one issuer. These limitations, however, can be overridden if necessary to maintain a close approximation of the target index's composition.

VONE (Vanguard Russell 1000 ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $11.29B, a beta of 1.01 versus the broader market, a 52-week range of 279.68-343.25, average daily share volume of 101K, a public-listing history dating back to 2010. These structural characteristics shape how VONE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places VONE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VONE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on VONE?

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 VONE snapshot

As of June 30, 2026, spot at $338.81, ATM IV 13.70%, IV rank 26.52%, expected move 3.93%. The collar on VONE 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 VONE specifically: IV regime affects collar pricing on both sides; compressed VONE IV at 13.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.93% (roughly $13.31 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 VONE expiries trade a higher absolute premium for lower per-day decay. Position sizing on VONE should anchor to the underlying notional of $338.81 per share and to the trader's directional view on VONE etf.

VONE collar setup

The VONE 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 VONE near $338.81, the first option leg uses a $355.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VONE 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 VONE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$338.81	long
Sell 1	Call	$355.00	$0.13
Buy 1	Put	$320.00	$0.26

VONE collar risk and reward

Net Premium / Debit: -$33,894.00
Max Profit (per contract): $1,606.00
Max Loss (per contract): -$1,894.00
Breakeven(s): $338.94
Risk / Reward Ratio: 0.848

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.

VONE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on VONE. 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%	-$1,894.00
$74.92	-77.9%	-$1,894.00
$149.83	-55.8%	-$1,894.00
$224.74	-33.7%	-$1,894.00
$299.66	-11.6%	-$1,894.00
$374.57	+10.6%	+$1,606.00
$449.48	+32.7%	+$1,606.00
$524.39	+54.8%	+$1,606.00
$599.30	+76.9%	+$1,606.00
$674.21	+99.0%	+$1,606.00

When traders use collar on VONE

Collars on VONE hedge an existing long VONE 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.

VONE thesis for this collar

The market-implied 1-standard-deviation range for VONE extends from approximately $325.50 on the downside to $352.12 on the upside. A VONE collar hedges an existing long VONE 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 VONE IV rank near 26.52% 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 VONE at 13.70%. As a Financial Services name, VONE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VONE-specific events.

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

Frequently asked questions

What is a collar on VONE?: A collar on VONE is the collar strategy applied to VONE (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 VONE etf trading near $338.81, the strikes shown on this page are snapped to the nearest listed VONE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VONE 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 VONE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 13.70%), the computed maximum profit is $1,606.00 per contract and the computed maximum loss is -$1,894.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VONE collar?: The breakeven for the VONE collar priced on this page is roughly $338.94 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 VONE market-implied 1-standard-deviation expected move is approximately 3.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on VONE?: Collars on VONE hedge an existing long VONE 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 VONE implied volatility affect this collar?: VONE ATM IV is at 13.70% with IV rank near 26.52%, 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.