AIYY Collar Strategy
AIYY (YieldMax AI Option Income Strategy ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.
The YieldMax AI Option Income Strategy ETF (AIYY) operates as an actively managed exchange-traded fund, focused on generating regular weekly income. It achieves this by employing a strategy of selling call options or call spreads on an underlying asset related to artificial intelligence (AI). This approach is designed to both harvest premiums from the option sales and provide investors with exposure to the potential upward movement in the AI asset's price.
AIYY (YieldMax AI Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $33.8M, a beta of 1.54 versus the broader market, a 52-week range of 6.95-29.7, average daily share volume of 81K, a public-listing history dating back to 2023. These structural characteristics shape how AIYY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.54 indicates AIYY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AIYY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AIYY?
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.
AIYY snapshot
As of August 14, 2026, spot at $7.55, ATM IV 70.90%, IV rank 14.09%, expected move 20.33%. The collar on AIYY below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this collar structure on AIYY specifically: IV regime affects collar pricing on both sides; compressed AIYY IV at 70.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.33% (roughly $1.53 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIYY expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIYY should anchor to the underlying notional of $7.55 per share and to the trader's directional view on AIYY etf.
AIYY collar setup
The AIYY collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AIYY at $7.55 on that close, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIYY chain at a 7-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 AIYY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.55 | long |
| Sell 1 | Call | $8.00 | $0.13 |
| Buy 1 | Put | $7.00 | $0.10 |
AIYY collar risk and reward
- Net Premium / Debit
- -$752.50
- Max Profit (per contract)
- $47.50
- Max Loss (per contract)
- -$52.50
- Breakeven(s)
- $7.52
- Risk / Reward Ratio
- 0.905
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.
AIYY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AIYY. 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 | -99.9% | -$52.50 |
| $1.68 | -77.8% | -$52.50 |
| $3.35 | -55.7% | -$52.50 |
| $5.01 | -33.6% | -$52.50 |
| $6.68 | -11.5% | -$52.50 |
| $8.35 | +10.6% | +$47.50 |
| $10.02 | +32.7% | +$47.50 |
| $11.69 | +54.8% | +$47.50 |
| $13.36 | +76.9% | +$47.50 |
| $15.02 | +99.0% | +$47.50 |
When traders use collar on AIYY
Collars on AIYY hedge an existing long AIYY 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.
AIYY thesis for this collar
The market-implied 1-standard-deviation range for AIYY extends from approximately $6.02 on the downside to $9.08 on the upside. A AIYY collar hedges an existing long AIYY 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 AIYY IV rank near 14.09% 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 AIYY at 70.90%. As a Financial Services name, AIYY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIYY-specific events.
AIYY 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. AIYY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIYY alongside the broader basket even when AIYY-specific fundamentals are unchanged. Always rebuild the position from current AIYY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AIYY?
- A collar on AIYY is the collar strategy applied to AIYY (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 AIYY etf at $7.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AIYY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AIYY 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 AIYY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 70.90%), the computed maximum profit is $47.50 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIYY collar?
- The breakeven for the AIYY collar priced on this page is roughly $7.52 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AIYY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AIYY?
- Collars on AIYY hedge an existing long AIYY 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 AIYY implied volatility affect this collar?
- AIYY ATM IV is at 70.90% with IV rank near 14.09%, 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.