DAVE Collar Strategy
DAVE (Dave Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Dave Inc. provides a suite of financial products and services through its financial service online platform. The company offers Insights, a personal financial management tool to manage income and expenses between paychecks for members; ExtraCash, a free overdraft and short-term credit alternative, which allows members to advance funds to their account and avoid a fee; and Side Hustle, a job application portal. It also provides Dave Banking, a digital checking and demand deposit account. The company was founded in 2015 and is based in West Hollywood, California.
DAVE (Dave Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.23B, a trailing P/E of 14.33, a beta of 3.94 versus the broader market, a 52-week range of 152.21-287.69, average daily share volume of 590K, 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 3.94 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 May 15, 2026, spot at $234.96, ATM IV 62.50%, IV rank 12.22%, expected move 17.92%. 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 28-day expiry.
Why this collar structure on DAVE specifically: IV regime affects collar pricing on both sides; compressed DAVE IV at 62.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.92% (roughly $42.10 on the underlying). The 28-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 $234.96 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 $234.96, the first option leg uses a $245.00 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 28-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 | $234.96 | long |
| Sell 1 | Call | $245.00 | $12.35 |
| Buy 1 | Put | $225.00 | $11.40 |
DAVE collar risk and reward
- Net Premium / Debit
- -$23,401.00
- Max Profit (per contract)
- $1,099.00
- Max Loss (per contract)
- -$901.00
- Breakeven(s)
- $234.01
- Risk / Reward Ratio
- 1.220
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$901.00 |
| $51.96 | -77.9% | -$901.00 |
| $103.91 | -55.8% | -$901.00 |
| $155.86 | -33.7% | -$901.00 |
| $207.81 | -11.6% | -$901.00 |
| $259.76 | +10.6% | +$1,099.00 |
| $311.71 | +32.7% | +$1,099.00 |
| $363.66 | +54.8% | +$1,099.00 |
| $415.61 | +76.9% | +$1,099.00 |
| $467.56 | +99.0% | +$1,099.00 |
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 $192.86 on the downside to $277.06 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 12.22% 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 62.50%. 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 $234.96, 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 62.50%), the computed maximum profit is $1,099.00 per contract and the computed maximum loss is -$901.00 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 $234.01 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 17.92%; 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 62.50% with IV rank near 12.22%, 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.