AIVL Collar Strategy
AIVL (WisdomTree U.S. AI Enhanced Value Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is actively managed and seeks to invest primarily in equity securities selected from a universe of U.S. equities that exhibit value characteristics based on the selection results of a proprietary, quantitative AI model developed by Sub-Adviser. It will normally invest at least 80% of its net assets in securities of companies that are organized in the U.S., maintain a principal place of business in the U.S., or are traded principally on a U.S. exchange. The fund is non-diversified.
AIVL (WisdomTree U.S. AI Enhanced Value Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $396.5M, a beta of 0.82 versus the broader market, a 52-week range of 108.25-124.45, average daily share volume of 2K, a public-listing history dating back to 2006. These structural characteristics shape how AIVL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places AIVL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIVL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AIVL?
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 AIVL snapshot
As of May 15, 2026, spot at $122.28, ATM IV 13.90%, IV rank 20.45%, expected move 3.99%. The collar on AIVL 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 AIVL specifically: IV regime affects collar pricing on both sides; compressed AIVL IV at 13.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.99% (roughly $4.87 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 AIVL expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIVL should anchor to the underlying notional of $122.28 per share and to the trader's directional view on AIVL etf.
AIVL collar setup
The AIVL 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 AIVL near $122.28, the first option leg uses a $128.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIVL 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 AIVL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $122.28 | long |
| Sell 1 | Call | $128.00 | $0.66 |
| Buy 1 | Put | $116.00 | $0.27 |
AIVL collar risk and reward
- Net Premium / Debit
- -$12,189.00
- Max Profit (per contract)
- $611.00
- Max Loss (per contract)
- -$589.00
- Breakeven(s)
- $121.89
- Risk / Reward Ratio
- 1.037
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.
AIVL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AIVL. 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% | -$589.00 |
| $27.05 | -77.9% | -$589.00 |
| $54.08 | -55.8% | -$589.00 |
| $81.12 | -33.7% | -$589.00 |
| $108.15 | -11.6% | -$589.00 |
| $135.19 | +10.6% | +$611.00 |
| $162.22 | +32.7% | +$611.00 |
| $189.26 | +54.8% | +$611.00 |
| $216.30 | +76.9% | +$611.00 |
| $243.33 | +99.0% | +$611.00 |
When traders use collar on AIVL
Collars on AIVL hedge an existing long AIVL 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.
AIVL thesis for this collar
The market-implied 1-standard-deviation range for AIVL extends from approximately $117.41 on the downside to $127.15 on the upside. A AIVL collar hedges an existing long AIVL 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 AIVL IV rank near 20.45% 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 AIVL at 13.90%. As a Financial Services name, AIVL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIVL-specific events.
AIVL 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. AIVL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIVL alongside the broader basket even when AIVL-specific fundamentals are unchanged. Always rebuild the position from current AIVL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AIVL?
- A collar on AIVL is the collar strategy applied to AIVL (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 AIVL etf trading near $122.28, the strikes shown on this page are snapped to the nearest listed AIVL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIVL 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 AIVL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 13.90%), the computed maximum profit is $611.00 per contract and the computed maximum loss is -$589.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIVL collar?
- The breakeven for the AIVL collar priced on this page is roughly $121.89 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 AIVL market-implied 1-standard-deviation expected move is approximately 3.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AIVL?
- Collars on AIVL hedge an existing long AIVL 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 AIVL implied volatility affect this collar?
- AIVL ATM IV is at 13.90% with IV rank near 20.45%, 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.