How are VSGX 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 VSGX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.80%), the computed maximum profit is $336.00 per contract and the computed maximum loss is -$464.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VSGX collar?

The breakeven for the VSGX collar priced on this page is roughly $83.64 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 VSGX market-implied 1-standard-deviation expected move is approximately 8.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VSGX implied volatility affect this collar?

VSGX ATM IV is at 30.80% with IV rank near 21.87%, 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.

VSGX Collar Strategy

VSGX (Vanguard ESG International Stock ETF), in the Financial Services sector, (Asset Management - Global industry), listed on CBOE.

This exchange-traded fund (ETF) aims to replicate the investment performance of the FTSE Global All Cap ex US Choice Index. It builds its portfolio from a broad selection of international companies, spanning large, mid, and small market capitalizations, with individual holdings weighted by their market value. The fund employs a passively managed, index-sampling strategy, meticulously applying environmental, social, and corporate governance (ESG) screens to its holdings. It systematically excludes businesses involved in sectors such as adult entertainment, alcohol, tobacco, cannabis, and gambling. Additionally, it steers clear of companies linked to controversial weapons, including chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military systems, and civilian firearms. The fund also eschews companies significantly involved in nuclear power generation or those with substantial ties to fossil fuels, encompassing coal, oil, and natural gas.

VSGX (Vanguard ESG International Stock ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $6.67B, a beta of 0.97 versus the broader market, a 52-week range of 64.16-85.16, average daily share volume of 185K, a public-listing history dating back to 2018. These structural characteristics shape how VSGX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

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

What is a collar on VSGX?

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 VSGX snapshot

As of June 30, 2026, spot at $83.16, ATM IV 30.80%, IV rank 21.87%, expected move 8.83%. The collar on VSGX 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 52-day expiry.

Why this collar structure on VSGX specifically: IV regime affects collar pricing on both sides; compressed VSGX IV at 30.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.83% (roughly $7.34 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VSGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on VSGX should anchor to the underlying notional of $83.16 per share and to the trader's directional view on VSGX etf.

VSGX collar setup

The VSGX 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 VSGX near $83.16, the first option leg uses a $87.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VSGX chain at a 52-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 VSGX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$83.16	long
Sell 1	Call	$87.00	$0.29
Buy 1	Put	$79.00	$0.77

VSGX collar risk and reward

Net Premium / Debit: -$8,364.00
Max Profit (per contract): $336.00
Max Loss (per contract): -$464.00
Breakeven(s): $83.64
Risk / Reward Ratio: 0.724

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.

VSGX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on VSGX. 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%	-$464.00
$18.40	-77.9%	-$464.00
$36.78	-55.8%	-$464.00
$55.17	-33.7%	-$464.00
$73.55	-11.6%	-$464.00
$91.94	+10.6%	+$336.00
$110.33	+32.7%	+$336.00
$128.71	+54.8%	+$336.00
$147.10	+76.9%	+$336.00
$165.48	+99.0%	+$336.00

When traders use collar on VSGX

Collars on VSGX hedge an existing long VSGX 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.

VSGX thesis for this collar

The market-implied 1-standard-deviation range for VSGX extends from approximately $75.82 on the downside to $90.50 on the upside. A VSGX collar hedges an existing long VSGX 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 VSGX IV rank near 21.87% 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 VSGX at 30.80%. As a Financial Services name, VSGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VSGX-specific events.

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

Frequently asked questions

What is a collar on VSGX?: A collar on VSGX is the collar strategy applied to VSGX (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 VSGX etf trading near $83.16, the strikes shown on this page are snapped to the nearest listed VSGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VSGX 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 VSGX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.80%), the computed maximum profit is $336.00 per contract and the computed maximum loss is -$464.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VSGX collar?: The breakeven for the VSGX collar priced on this page is roughly $83.64 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 VSGX market-implied 1-standard-deviation expected move is approximately 8.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on VSGX?: Collars on VSGX hedge an existing long VSGX 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 VSGX implied volatility affect this collar?: VSGX ATM IV is at 30.80% with IV rank near 21.87%, 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.