BITX Collar Strategy
BITX (2x Bitcoin Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
BITX aims to provide 2x daily exposure to bitcoin futures. The fund seeks to track the price movement of bitcoin futures traded on the CME Futures Exchange for a single day. The fund buys cash-settled Bitcoin futures contracts and will roll the contracts on a monthly basis, as they near expiration. The expiring contracts are replaced with the next month contracts. The final trade date each month is the last Friday of the contract month. On day T-2 at market close, the index is 0% in the expiring futures contract and 100% in the next futures contract.
BITX (2x Bitcoin Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $784.6M, a beta of 3.03 versus the broader market, a 52-week range of 10.085-68.81, average daily share volume of 9.3M, a public-listing history dating back to 2023. These structural characteristics shape how BITX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.03 indicates BITX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BITX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BITX?
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 BITX snapshot
As of June 30, 2026, spot at $10.30, ATM IV 81.94%, IV rank 13.74%, expected move 23.49%. The collar on BITX 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 31-day expiry.
Why this collar structure on BITX specifically: IV regime affects collar pricing on both sides; compressed BITX IV at 81.94% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 23.49% (roughly $2.42 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BITX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BITX should anchor to the underlying notional of $10.30 per share and to the trader's directional view on BITX etf.
BITX collar setup
The BITX 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 BITX near $10.30, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BITX chain at a 31-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 BITX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.30 | long |
| Sell 1 | Call | $11.00 | $0.70 |
| Buy 1 | Put | $10.00 | $0.79 |
BITX collar risk and reward
- Net Premium / Debit
- -$1,039.00
- Max Profit (per contract)
- $61.00
- Max Loss (per contract)
- -$39.00
- Breakeven(s)
- $10.39
- Risk / Reward Ratio
- 1.564
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.
BITX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BITX. 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% | -$39.00 |
| $2.29 | -77.8% | -$39.00 |
| $4.56 | -55.7% | -$39.00 |
| $6.84 | -33.6% | -$39.00 |
| $9.12 | -11.5% | -$39.00 |
| $11.39 | +10.6% | +$61.00 |
| $13.67 | +32.7% | +$61.00 |
| $15.94 | +54.8% | +$61.00 |
| $18.22 | +76.9% | +$61.00 |
| $20.50 | +99.0% | +$61.00 |
When traders use collar on BITX
Collars on BITX hedge an existing long BITX 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.
BITX thesis for this collar
The market-implied 1-standard-deviation range for BITX extends from approximately $7.88 on the downside to $12.72 on the upside. A BITX collar hedges an existing long BITX 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 BITX IV rank near 13.74% 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 BITX at 81.94%. As a Financial Services name, BITX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BITX-specific events.
BITX 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. BITX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BITX alongside the broader basket even when BITX-specific fundamentals are unchanged. Always rebuild the position from current BITX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BITX?
- A collar on BITX is the collar strategy applied to BITX (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 BITX etf trading near $10.30, the strikes shown on this page are snapped to the nearest listed BITX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BITX 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 BITX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 81.94%), the computed maximum profit is $61.00 per contract and the computed maximum loss is -$39.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BITX collar?
- The breakeven for the BITX collar priced on this page is roughly $10.39 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 BITX market-implied 1-standard-deviation expected move is approximately 23.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BITX?
- Collars on BITX hedge an existing long BITX 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 BITX implied volatility affect this collar?
- BITX ATM IV is at 81.94% with IV rank near 13.74%, 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.