BOTZ Collar Strategy
BOTZ (Global X - Robotics & Artificial Intelligence ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
The Global X Robotics & Artificial Intelligence ETF (BOTZ) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Robotics & Artificial Intelligence Thematic Index.
BOTZ (Global X - Robotics & Artificial Intelligence ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $3.84B, a beta of 1.71 versus the broader market, a 52-week range of 30.12-41.71, average daily share volume of 949K, a public-listing history dating back to 2016. These structural characteristics shape how BOTZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.71 indicates BOTZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BOTZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BOTZ?
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 BOTZ snapshot
As of May 15, 2026, spot at $40.30, ATM IV 28.30%, IV rank 51.33%, expected move 8.11%. The collar on BOTZ 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 BOTZ specifically: IV regime affects collar pricing on both sides; mid-range BOTZ IV at 28.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.11% (roughly $3.27 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 BOTZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on BOTZ should anchor to the underlying notional of $40.30 per share and to the trader's directional view on BOTZ etf.
BOTZ collar setup
The BOTZ 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 BOTZ near $40.30, the first option leg uses a $42.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BOTZ 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 BOTZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $40.30 | long |
| Sell 1 | Call | $42.00 | $0.68 |
| Buy 1 | Put | $38.00 | $0.60 |
BOTZ collar risk and reward
- Net Premium / Debit
- -$4,022.50
- Max Profit (per contract)
- $177.50
- Max Loss (per contract)
- -$222.50
- Breakeven(s)
- $40.22
- Risk / Reward Ratio
- 0.798
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.
BOTZ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BOTZ. 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% | -$222.50 |
| $8.92 | -77.9% | -$222.50 |
| $17.83 | -55.8% | -$222.50 |
| $26.74 | -33.7% | -$222.50 |
| $35.65 | -11.5% | -$222.50 |
| $44.56 | +10.6% | +$177.50 |
| $53.47 | +32.7% | +$177.50 |
| $62.38 | +54.8% | +$177.50 |
| $71.29 | +76.9% | +$177.50 |
| $80.20 | +99.0% | +$177.50 |
When traders use collar on BOTZ
Collars on BOTZ hedge an existing long BOTZ 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.
BOTZ thesis for this collar
The market-implied 1-standard-deviation range for BOTZ extends from approximately $37.03 on the downside to $43.57 on the upside. A BOTZ collar hedges an existing long BOTZ 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 BOTZ IV rank near 51.33% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BOTZ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, BOTZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BOTZ-specific events.
BOTZ 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. BOTZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BOTZ alongside the broader basket even when BOTZ-specific fundamentals are unchanged. Always rebuild the position from current BOTZ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BOTZ?
- A collar on BOTZ is the collar strategy applied to BOTZ (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 BOTZ etf trading near $40.30, the strikes shown on this page are snapped to the nearest listed BOTZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BOTZ 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 BOTZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is $177.50 per contract and the computed maximum loss is -$222.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BOTZ collar?
- The breakeven for the BOTZ collar priced on this page is roughly $40.22 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 BOTZ market-implied 1-standard-deviation expected move is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BOTZ?
- Collars on BOTZ hedge an existing long BOTZ 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 BOTZ implied volatility affect this collar?
- BOTZ ATM IV is at 28.30% with IV rank near 51.33%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.