ACES Collar Strategy
ACES (ALPS Clean Energy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The ALPS Clean Energy ETF (ACES) seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the CIBC Atlas Clean Energy Index (NACEX).
ACES (ALPS Clean Energy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $129.6M, a beta of 1.38 versus the broader market, a 52-week range of 23.82-38.77, average daily share volume of 115K, a public-listing history dating back to 2018. These structural characteristics shape how ACES etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.38 indicates ACES has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ACES pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ACES?
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 ACES snapshot
As of May 15, 2026, spot at $38.36, ATM IV 30.70%, IV rank 17.99%, expected move 8.80%. The collar on ACES 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 34-day expiry.
Why this collar structure on ACES specifically: IV regime affects collar pricing on both sides; compressed ACES IV at 30.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.80% (roughly $3.38 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ACES expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACES should anchor to the underlying notional of $38.36 per share and to the trader's directional view on ACES etf.
ACES collar setup
The ACES 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 ACES near $38.36, the first option leg uses a $40.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACES chain at a 34-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 ACES shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $38.36 | long |
| Sell 1 | Call | $40.28 | N/A |
| Buy 1 | Put | $36.44 | N/A |
ACES collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
ACES collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ACES. 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.
When traders use collar on ACES
Collars on ACES hedge an existing long ACES 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.
ACES thesis for this collar
The market-implied 1-standard-deviation range for ACES extends from approximately $34.98 on the downside to $41.74 on the upside. A ACES collar hedges an existing long ACES 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 ACES IV rank near 17.99% 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 ACES at 30.70%. As a Financial Services name, ACES options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACES-specific events.
ACES 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. ACES positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACES alongside the broader basket even when ACES-specific fundamentals are unchanged. Always rebuild the position from current ACES chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ACES?
- A collar on ACES is the collar strategy applied to ACES (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 ACES etf trading near $38.36, the strikes shown on this page are snapped to the nearest listed ACES chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACES 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 ACES collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ACES collar?
- The breakeven for the ACES collar priced on this page is no defined breakeven on the modeled curve 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 ACES market-implied 1-standard-deviation expected move is approximately 8.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ACES?
- Collars on ACES hedge an existing long ACES 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 ACES implied volatility affect this collar?
- ACES ATM IV is at 30.70% with IV rank near 17.99%, 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.