AIEQ Collar Strategy
AIEQ (Amplify AI Powered Equity ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Amplify AI Powered Equity ETF (AIEQ) seeks investment results that generally correlate (before fees and expenses) to the total return performance of the AI Powered Equity Index that runs on the IBM Watson platform. Leveraging the power of artificial intelligence (AI), the unbiased and data-driven approach revolutionizes security selection by harnessing up to 10 years of historical data and then applying this analysis to recent economic data and news articles to transform security selection.
AIEQ (Amplify AI Powered Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $120.0M, a beta of 1.17 versus the broader market, a 52-week range of 39.33-49.2749, average daily share volume of 4K, a public-listing history dating back to 2017. These structural characteristics shape how AIEQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.17 places AIEQ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIEQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AIEQ?
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 AIEQ snapshot
As of May 15, 2026, spot at $48.95, ATM IV 23.90%, IV rank 18.75%, expected move 6.85%. The collar on AIEQ 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 AIEQ specifically: IV regime affects collar pricing on both sides; compressed AIEQ IV at 23.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.85% (roughly $3.35 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 AIEQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIEQ should anchor to the underlying notional of $48.95 per share and to the trader's directional view on AIEQ etf.
AIEQ collar setup
The AIEQ 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 AIEQ near $48.95, the first option leg uses a $51.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIEQ 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 AIEQ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $48.95 | long |
| Sell 1 | Call | $51.00 | $0.71 |
| Buy 1 | Put | $47.00 | $0.62 |
AIEQ collar risk and reward
- Net Premium / Debit
- -$4,886.00
- Max Profit (per contract)
- $214.00
- Max Loss (per contract)
- -$186.00
- Breakeven(s)
- $48.86
- Risk / Reward Ratio
- 1.151
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.
AIEQ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AIEQ. 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% | -$186.00 |
| $10.83 | -77.9% | -$186.00 |
| $21.65 | -55.8% | -$186.00 |
| $32.48 | -33.7% | -$186.00 |
| $43.30 | -11.5% | -$186.00 |
| $54.12 | +10.6% | +$214.00 |
| $64.94 | +32.7% | +$214.00 |
| $75.76 | +54.8% | +$214.00 |
| $86.59 | +76.9% | +$214.00 |
| $97.41 | +99.0% | +$214.00 |
When traders use collar on AIEQ
Collars on AIEQ hedge an existing long AIEQ 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.
AIEQ thesis for this collar
The market-implied 1-standard-deviation range for AIEQ extends from approximately $45.60 on the downside to $52.30 on the upside. A AIEQ collar hedges an existing long AIEQ 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 AIEQ IV rank near 18.75% 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 AIEQ at 23.90%. As a Financial Services name, AIEQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIEQ-specific events.
AIEQ 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. AIEQ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIEQ alongside the broader basket even when AIEQ-specific fundamentals are unchanged. Always rebuild the position from current AIEQ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AIEQ?
- A collar on AIEQ is the collar strategy applied to AIEQ (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 AIEQ etf trading near $48.95, the strikes shown on this page are snapped to the nearest listed AIEQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIEQ 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 AIEQ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $214.00 per contract and the computed maximum loss is -$186.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIEQ collar?
- The breakeven for the AIEQ collar priced on this page is roughly $48.86 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 AIEQ market-implied 1-standard-deviation expected move is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AIEQ?
- Collars on AIEQ hedge an existing long AIEQ 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 AIEQ implied volatility affect this collar?
- AIEQ ATM IV is at 23.90% with IV rank near 18.75%, 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.