How are DAVE 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 DAVE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 71.81%), the computed maximum profit is $1,756.00 per contract and the computed maximum loss is -$1,744.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DAVE collar?

The breakeven for the DAVE collar priced on this page is roughly $377.44 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 DAVE market-implied 1-standard-deviation expected move is approximately 20.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DAVE implied volatility affect this collar?

DAVE ATM IV is at 71.81% with IV rank near 21.67%, 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.

DAVE Collar Strategy

DAVE (Dave Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

Dave Inc. manages a digital platform that delivers a comprehensive array of financial products and services. Among its key offerings is "Insights," a personal finance management solution designed to help members monitor their earnings and expenditures between salary payments. The company also provides "ExtraCash," a no-cost alternative to traditional overdrafts or short-term credit, which allows users to advance money to their accounts and bypass associated fees. Furthermore, its platform features "Side Hustle," an integrated portal for job applications. Dave Inc. also includes "Dave Banking," which operates as a digital checking and demand deposit account. Established in 2015, the firm is headquartered in West Hollywood, California.

DAVE (Dave Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $4.69B, a trailing P/E of 20.82, a beta of 3.89 versus the broader market, a 52-week range of 152.21-353.02, average daily share volume of 603K, a public-listing history dating back to 2021, approximately 274 full-time employees. These structural characteristics shape how DAVE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.89 indicates DAVE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on DAVE?

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 DAVE snapshot

As of June 30, 2026, spot at $378.09, ATM IV 71.81%, IV rank 21.67%, expected move 20.59%. The collar on DAVE 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 31-day expiry.

Why this collar structure on DAVE specifically: IV regime affects collar pricing on both sides; compressed DAVE IV at 71.81% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.59% (roughly $77.84 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DAVE expiries trade a higher absolute premium for lower per-day decay. Position sizing on DAVE should anchor to the underlying notional of $378.09 per share and to the trader's directional view on DAVE stock.

DAVE collar setup

The DAVE 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 DAVE near $378.09, the first option leg uses a $395.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DAVE chain at a 31-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 DAVE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$378.09	long
Sell 1	Call	$395.00	$24.10
Buy 1	Put	$360.00	$23.45

DAVE collar risk and reward

Net Premium / Debit: -$37,744.00
Max Profit (per contract): $1,756.00
Max Loss (per contract): -$1,744.00
Breakeven(s): $377.44
Risk / Reward Ratio: 1.007

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.

DAVE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on DAVE. 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%	-$1,744.00
$83.61	-77.9%	-$1,744.00
$167.20	-55.8%	-$1,744.00
$250.80	-33.7%	-$1,744.00
$334.40	-11.6%	-$1,744.00
$417.99	+10.6%	+$1,756.00
$501.59	+32.7%	+$1,756.00
$585.19	+54.8%	+$1,756.00
$668.78	+76.9%	+$1,756.00
$752.38	+99.0%	+$1,756.00

When traders use collar on DAVE

Collars on DAVE hedge an existing long DAVE stock 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.

DAVE thesis for this collar

The market-implied 1-standard-deviation range for DAVE extends from approximately $300.25 on the downside to $455.93 on the upside. A DAVE collar hedges an existing long DAVE 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 DAVE IV rank near 21.67% 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 DAVE at 71.81%. As a Technology name, DAVE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DAVE-specific events.

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

Frequently asked questions

What is a collar on DAVE?: A collar on DAVE is the collar strategy applied to DAVE (stock). 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 DAVE stock trading near $378.09, the strikes shown on this page are snapped to the nearest listed DAVE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DAVE 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 DAVE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 71.81%), the computed maximum profit is $1,756.00 per contract and the computed maximum loss is -$1,744.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DAVE collar?: The breakeven for the DAVE collar priced on this page is roughly $377.44 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 DAVE market-implied 1-standard-deviation expected move is approximately 20.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on DAVE?: Collars on DAVE hedge an existing long DAVE stock 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 DAVE implied volatility affect this collar?: DAVE ATM IV is at 71.81% with IV rank near 21.67%, 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.