XSVM Collar Strategy
XSVM (Invesco S&P SmallCap Value with Momentum ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco S&P SmallCap Value with Momentum ETF (Fund) is based on the S&P 600 High Momentum Value Index (Index). The Fund will invest at least 90% of its total assets in the component securities that comprise the Index. The Index is composed of 120 securities in the S&P SmallCap 600 Index having the highest "value scores" and "momentum scores," calculated pursuant to the index methodology. Index constituents are weighted by their value scores; securities with higher value scores receive relatively greater weights. The Fund and the Index are rebalanced and reconstituted semi-annually.
XSVM (Invesco S&P SmallCap Value with Momentum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $596.9M, a beta of 1.02 versus the broader market, a 52-week range of 48.62-67.12, average daily share volume of 32K, a public-listing history dating back to 2005. These structural characteristics shape how XSVM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places XSVM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. XSVM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on XSVM?
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 XSVM snapshot
As of May 15, 2026, spot at $64.40, ATM IV 29.40%, IV rank 24.37%, expected move 8.43%. The collar on XSVM 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 189-day expiry.
Why this collar structure on XSVM specifically: IV regime affects collar pricing on both sides; compressed XSVM IV at 29.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.43% (roughly $5.43 on the underlying). The 189-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XSVM expiries trade a higher absolute premium for lower per-day decay. Position sizing on XSVM should anchor to the underlying notional of $64.40 per share and to the trader's directional view on XSVM etf.
XSVM collar setup
The XSVM 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 XSVM near $64.40, the first option leg uses a $68.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XSVM chain at a 189-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 XSVM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $64.40 | long |
| Sell 1 | Call | $68.00 | $3.50 |
| Buy 1 | Put | $61.00 | $2.85 |
XSVM collar risk and reward
- Net Premium / Debit
- -$6,375.00
- Max Profit (per contract)
- $425.00
- Max Loss (per contract)
- -$275.00
- Breakeven(s)
- $63.75
- Risk / Reward Ratio
- 1.545
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.
XSVM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on XSVM. 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% | -$275.00 |
| $14.25 | -77.9% | -$275.00 |
| $28.49 | -55.8% | -$275.00 |
| $42.72 | -33.7% | -$275.00 |
| $56.96 | -11.5% | -$275.00 |
| $71.20 | +10.6% | +$425.00 |
| $85.44 | +32.7% | +$425.00 |
| $99.68 | +54.8% | +$425.00 |
| $113.91 | +76.9% | +$425.00 |
| $128.15 | +99.0% | +$425.00 |
When traders use collar on XSVM
Collars on XSVM hedge an existing long XSVM 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.
XSVM thesis for this collar
The market-implied 1-standard-deviation range for XSVM extends from approximately $58.97 on the downside to $69.83 on the upside. A XSVM collar hedges an existing long XSVM 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 XSVM IV rank near 24.37% 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 XSVM at 29.40%. As a Financial Services name, XSVM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XSVM-specific events.
XSVM 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. XSVM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XSVM alongside the broader basket even when XSVM-specific fundamentals are unchanged. Always rebuild the position from current XSVM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on XSVM?
- A collar on XSVM is the collar strategy applied to XSVM (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 XSVM etf trading near $64.40, the strikes shown on this page are snapped to the nearest listed XSVM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are XSVM 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 XSVM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.40%), the computed maximum profit is $425.00 per contract and the computed maximum loss is -$275.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a XSVM collar?
- The breakeven for the XSVM collar priced on this page is roughly $63.75 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 XSVM market-implied 1-standard-deviation expected move is approximately 8.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on XSVM?
- Collars on XSVM hedge an existing long XSVM 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 XSVM implied volatility affect this collar?
- XSVM ATM IV is at 29.40% with IV rank near 24.37%, 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.