AMDW Collar Strategy
AMDW (Roundhill Investments - AMD WeeklyPay ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
The Roundhill AMD WeeklyPay ETF (“AMDW”) is designed for investors seeking a combination of income and growth potential. AMDW aims to provide weekly distributions and calendar week returns, before fees and expenses, equal to 1.2 times (120%) the calendar week total return of Advanced Micro Devices common shares (Nasdaq: AMD). AMDW is an actively-managed ETF.
AMDW (Roundhill Investments - AMD WeeklyPay ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $46.8M, a beta of 6.53 versus the broader market, a 52-week range of 38.3-100.75, average daily share volume of 50K, a public-listing history dating back to 2025. These structural characteristics shape how AMDW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 6.53 indicates AMDW has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AMDW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AMDW?
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 AMDW snapshot
As of May 15, 2026, spot at $90.66, ATM IV 70.00%, IV rank 21.66%, expected move 20.07%. The collar on AMDW 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 AMDW specifically: IV regime affects collar pricing on both sides; compressed AMDW IV at 70.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.07% (roughly $18.19 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 AMDW expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMDW should anchor to the underlying notional of $90.66 per share and to the trader's directional view on AMDW etf.
AMDW collar setup
The AMDW 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 AMDW near $90.66, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMDW 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 AMDW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $90.66 | long |
| Sell 1 | Call | $95.00 | $4.40 |
| Buy 1 | Put | $85.00 | $6.90 |
AMDW collar risk and reward
- Net Premium / Debit
- -$9,316.00
- Max Profit (per contract)
- $184.00
- Max Loss (per contract)
- -$816.00
- Breakeven(s)
- $93.16
- Risk / Reward Ratio
- 0.225
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.
AMDW collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AMDW. 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% | -$816.00 |
| $20.05 | -77.9% | -$816.00 |
| $40.10 | -55.8% | -$816.00 |
| $60.14 | -33.7% | -$816.00 |
| $80.19 | -11.6% | -$816.00 |
| $100.23 | +10.6% | +$184.00 |
| $120.28 | +32.7% | +$184.00 |
| $140.32 | +54.8% | +$184.00 |
| $160.36 | +76.9% | +$184.00 |
| $180.41 | +99.0% | +$184.00 |
When traders use collar on AMDW
Collars on AMDW hedge an existing long AMDW 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.
AMDW thesis for this collar
The market-implied 1-standard-deviation range for AMDW extends from approximately $72.47 on the downside to $108.85 on the upside. A AMDW collar hedges an existing long AMDW 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 AMDW IV rank near 21.66% 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 AMDW at 70.00%. As a Financial Services name, AMDW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMDW-specific events.
AMDW 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. AMDW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMDW alongside the broader basket even when AMDW-specific fundamentals are unchanged. Always rebuild the position from current AMDW chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AMDW?
- A collar on AMDW is the collar strategy applied to AMDW (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 AMDW etf trading near $90.66, the strikes shown on this page are snapped to the nearest listed AMDW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMDW 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 AMDW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 70.00%), the computed maximum profit is $184.00 per contract and the computed maximum loss is -$816.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMDW collar?
- The breakeven for the AMDW collar priced on this page is roughly $93.16 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 AMDW market-implied 1-standard-deviation expected move is approximately 20.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AMDW?
- Collars on AMDW hedge an existing long AMDW 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 AMDW implied volatility affect this collar?
- AMDW ATM IV is at 70.00% with IV rank near 21.66%, 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.