VONV Collar Strategy
VONV (Vanguard Russell 1000 Value ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Invests in stocks in the Russell 1000 Value Index, a broadly diversified index predominantly made up of value stocks of large U.S. companies. Seeks to closely track the index’s return, which is considered a gauge of large-cap value U.S. stock returns. Offers high potential for investment growth; share value typically rises and falls more sharply than that of funds holding bonds. More appropriate for long-term goals where your money’s growth is essential.
VONV (Vanguard Russell 1000 Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $20.43B, a beta of 0.85 versus the broader market, a 52-week range of 81.12-103.16, average daily share volume of 1.6M, a public-listing history dating back to 2010. These structural characteristics shape how VONV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places VONV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VONV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on VONV?
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 VONV snapshot
As of May 15, 2026, spot at $101.95, ATM IV 22.80%, IV rank 23.86%, expected move 6.54%. The collar on VONV 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 VONV specifically: IV regime affects collar pricing on both sides; compressed VONV IV at 22.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.54% (roughly $6.66 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 VONV expiries trade a higher absolute premium for lower per-day decay. Position sizing on VONV should anchor to the underlying notional of $101.95 per share and to the trader's directional view on VONV etf.
VONV collar setup
The VONV 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 VONV near $101.95, the first option leg uses a $107.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VONV 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 VONV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $101.95 | long |
| Sell 1 | Call | $107.00 | $0.96 |
| Buy 1 | Put | $97.00 | $1.43 |
VONV collar risk and reward
- Net Premium / Debit
- -$10,242.00
- Max Profit (per contract)
- $458.00
- Max Loss (per contract)
- -$542.00
- Breakeven(s)
- $102.42
- Risk / Reward Ratio
- 0.845
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.
VONV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VONV. 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% | -$542.00 |
| $22.55 | -77.9% | -$542.00 |
| $45.09 | -55.8% | -$542.00 |
| $67.63 | -33.7% | -$542.00 |
| $90.17 | -11.6% | -$542.00 |
| $112.71 | +10.6% | +$458.00 |
| $135.25 | +32.7% | +$458.00 |
| $157.79 | +54.8% | +$458.00 |
| $180.33 | +76.9% | +$458.00 |
| $202.88 | +99.0% | +$458.00 |
When traders use collar on VONV
Collars on VONV hedge an existing long VONV 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.
VONV thesis for this collar
The market-implied 1-standard-deviation range for VONV extends from approximately $95.29 on the downside to $108.61 on the upside. A VONV collar hedges an existing long VONV 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 VONV IV rank near 23.86% 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 VONV at 22.80%. As a Financial Services name, VONV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VONV-specific events.
VONV 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. VONV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VONV alongside the broader basket even when VONV-specific fundamentals are unchanged. Always rebuild the position from current VONV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VONV?
- A collar on VONV is the collar strategy applied to VONV (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 VONV etf trading near $101.95, the strikes shown on this page are snapped to the nearest listed VONV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VONV 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 VONV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.80%), the computed maximum profit is $458.00 per contract and the computed maximum loss is -$542.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VONV collar?
- The breakeven for the VONV collar priced on this page is roughly $102.42 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 VONV market-implied 1-standard-deviation expected move is approximately 6.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VONV?
- Collars on VONV hedge an existing long VONV 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 VONV implied volatility affect this collar?
- VONV ATM IV is at 22.80% with IV rank near 23.86%, 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.