BIL Collar Strategy
BIL (State Street SPDR Bloomberg 1-3 Month T-Bill ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The State Street SPDR Bloomberg 1-3 Month T-Bill ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg 1-3 Month U.S. Treasury Bill Index (the "Index")Seeks to provide exposure to publicly issued U.S. Treasury Bills that have a remaining maturities between 1 and 3 monthsShort duration fixed income is less exposed to fluctuations in interest rates than longer duration securitiesRebalanced on the last business day of the month
BIL (State Street SPDR Bloomberg 1-3 Month T-Bill ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $46.43B, a beta of 0.00 versus the broader market, a 52-week range of 91.26-91.78, average daily share volume of 11.5M, a public-listing history dating back to 2007. These structural characteristics shape how BIL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates BIL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BIL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BIL?
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 BIL snapshot
As of May 15, 2026, spot at $91.53, ATM IV 1.00%, IV rank 0.02%, expected move 0.29%. The collar on BIL 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 BIL specifically: IV regime affects collar pricing on both sides; compressed BIL IV at 1.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 0.29% (roughly $0.26 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 BIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BIL should anchor to the underlying notional of $91.53 per share and to the trader's directional view on BIL etf.
BIL collar setup
The BIL 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 BIL near $91.53, the first option leg uses a $96.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BIL 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 BIL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $91.53 | long |
| Sell 1 | Call | $96.11 | N/A |
| Buy 1 | Put | $86.95 | N/A |
BIL collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
BIL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BIL. 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.
When traders use collar on BIL
Collars on BIL hedge an existing long BIL 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.
BIL thesis for this collar
The market-implied 1-standard-deviation range for BIL extends from approximately $91.27 on the downside to $91.79 on the upside. A BIL collar hedges an existing long BIL 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 BIL IV rank near 0.02% 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 BIL at 1.00%. As a Financial Services name, BIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BIL-specific events.
BIL 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. BIL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BIL alongside the broader basket even when BIL-specific fundamentals are unchanged. Always rebuild the position from current BIL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BIL?
- A collar on BIL is the collar strategy applied to BIL (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 BIL etf trading near $91.53, the strikes shown on this page are snapped to the nearest listed BIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BIL 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 BIL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 1.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BIL collar?
- The breakeven for the BIL collar priced on this page is no defined breakeven on the modeled curve 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 BIL market-implied 1-standard-deviation expected move is approximately 0.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BIL?
- Collars on BIL hedge an existing long BIL 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 BIL implied volatility affect this collar?
- BIL ATM IV is at 1.00% with IV rank near 0.02%, 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.