VXUS Collar Strategy
VXUS (Vanguard Total International Stock ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
The Vanguard Total International Stock ETF is designed to mirror the investment performance of the FTSE Global All Cap ex US Index. This benchmark represents a wide range of stocks from companies located worldwide, excluding the United States. It offers extensive coverage across both established (developed) and growing (emerging) international equity markets, utilizing a passive strategy that directly replicates the underlying index's composition.
VXUS (Vanguard Total International Stock ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $654.47B, a beta of 0.92 versus the broader market, a 52-week range of 67.85-88.62, average daily share volume of 7.1M, a public-listing history dating back to 2011. These structural characteristics shape how VXUS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places VXUS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VXUS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on VXUS?
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 VXUS snapshot
As of June 29, 2026, spot at $84.90, ATM IV 18.24%, IV rank 42.23%, expected move 5.23%. The collar on VXUS 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 32-day expiry.
Why this collar structure on VXUS specifically: IV regime affects collar pricing on both sides; mid-range VXUS IV at 18.24% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.23% (roughly $4.44 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VXUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on VXUS should anchor to the underlying notional of $84.90 per share and to the trader's directional view on VXUS etf.
VXUS collar setup
The VXUS 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 VXUS near $84.90, the first option leg uses a $89.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VXUS chain at a 32-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 VXUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $84.90 | long |
| Sell 1 | Call | $89.00 | $0.39 |
| Buy 1 | Put | $80.50 | $0.70 |
VXUS collar risk and reward
- Net Premium / Debit
- -$8,521.00
- Max Profit (per contract)
- $379.00
- Max Loss (per contract)
- -$471.00
- Breakeven(s)
- $85.21
- Risk / Reward Ratio
- 0.805
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.
VXUS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VXUS. 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% | -$471.00 |
| $18.78 | -77.9% | -$471.00 |
| $37.55 | -55.8% | -$471.00 |
| $56.32 | -33.7% | -$471.00 |
| $75.09 | -11.6% | -$471.00 |
| $93.86 | +10.6% | +$379.00 |
| $112.63 | +32.7% | +$379.00 |
| $131.41 | +54.8% | +$379.00 |
| $150.18 | +76.9% | +$379.00 |
| $168.95 | +99.0% | +$379.00 |
When traders use collar on VXUS
Collars on VXUS hedge an existing long VXUS 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.
VXUS thesis for this collar
The market-implied 1-standard-deviation range for VXUS extends from approximately $80.46 on the downside to $89.34 on the upside. A VXUS collar hedges an existing long VXUS 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 VXUS IV rank near 42.23% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on VXUS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, VXUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VXUS-specific events.
VXUS 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. VXUS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VXUS alongside the broader basket even when VXUS-specific fundamentals are unchanged. Always rebuild the position from current VXUS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VXUS?
- A collar on VXUS is the collar strategy applied to VXUS (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 VXUS etf trading near $84.90, the strikes shown on this page are snapped to the nearest listed VXUS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VXUS 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 VXUS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 18.24%), the computed maximum profit is $379.00 per contract and the computed maximum loss is -$471.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VXUS collar?
- The breakeven for the VXUS collar priced on this page is roughly $85.21 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 VXUS market-implied 1-standard-deviation expected move is approximately 5.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VXUS?
- Collars on VXUS hedge an existing long VXUS 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 VXUS implied volatility affect this collar?
- VXUS ATM IV is at 18.24% with IV rank near 42.23%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.