AIQ Collar Strategy
AIQ (Global X - Artificial Intelligence & Technology ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Global X Artificial Intelligence & Technology ETF (AIQ) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Artificial Intelligence & Big Data Index.
AIQ (Global X - Artificial Intelligence & Technology ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.26B, a beta of 1.44 versus the broader market, a 52-week range of 39.51-63.035, average daily share volume of 2.0M, a public-listing history dating back to 2018. These structural characteristics shape how AIQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.44 indicates AIQ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AIQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AIQ?
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 AIQ snapshot
As of May 15, 2026, spot at $61.17, ATM IV 30.20%, IV rank 63.88%, expected move 8.66%. The collar on AIQ 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 AIQ specifically: IV regime affects collar pricing on both sides; mid-range AIQ IV at 30.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.66% (roughly $5.30 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 AIQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIQ should anchor to the underlying notional of $61.17 per share and to the trader's directional view on AIQ etf.
AIQ collar setup
The AIQ 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 AIQ near $61.17, the first option leg uses a $64.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIQ 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 AIQ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $61.17 | long |
| Sell 1 | Call | $64.00 | $0.98 |
| Buy 1 | Put | $58.00 | $0.98 |
AIQ collar risk and reward
- Net Premium / Debit
- -$6,117.00
- Max Profit (per contract)
- $283.00
- Max Loss (per contract)
- -$317.00
- Breakeven(s)
- $61.17
- Risk / Reward Ratio
- 0.893
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.
AIQ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AIQ. 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% | -$317.00 |
| $13.53 | -77.9% | -$317.00 |
| $27.06 | -55.8% | -$317.00 |
| $40.58 | -33.7% | -$317.00 |
| $54.11 | -11.5% | -$317.00 |
| $67.63 | +10.6% | +$283.00 |
| $81.15 | +32.7% | +$283.00 |
| $94.68 | +54.8% | +$283.00 |
| $108.20 | +76.9% | +$283.00 |
| $121.73 | +99.0% | +$283.00 |
When traders use collar on AIQ
Collars on AIQ hedge an existing long AIQ 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.
AIQ thesis for this collar
The market-implied 1-standard-deviation range for AIQ extends from approximately $55.87 on the downside to $66.47 on the upside. A AIQ collar hedges an existing long AIQ 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 AIQ IV rank near 63.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on AIQ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AIQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIQ-specific events.
AIQ 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. AIQ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIQ alongside the broader basket even when AIQ-specific fundamentals are unchanged. Always rebuild the position from current AIQ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AIQ?
- A collar on AIQ is the collar strategy applied to AIQ (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 AIQ etf trading near $61.17, the strikes shown on this page are snapped to the nearest listed AIQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIQ 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 AIQ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.20%), the computed maximum profit is $283.00 per contract and the computed maximum loss is -$317.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIQ collar?
- The breakeven for the AIQ collar priced on this page is roughly $61.17 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 AIQ market-implied 1-standard-deviation expected move is approximately 8.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AIQ?
- Collars on AIQ hedge an existing long AIQ 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 AIQ implied volatility affect this collar?
- AIQ ATM IV is at 30.20% with IV rank near 63.88%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.