BTCL Collar Strategy
BTCL (World Funds Trust - T-Rex 2X Long Bitcoin Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund, under normal circumstances, invests at least 80% of its net assets (plus any borrowings for investment purposes) in financial instruments that are designed to provide, in the aggregate, 200% exposure to the price performance of the Reference Assets on a daily basis. The fund is non-diversified.
BTCL (World Funds Trust - T-Rex 2X Long Bitcoin Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $40.7M, a beta of 1.87 versus the broader market, a 52-week range of 10.4-68.29, average daily share volume of 93K, a public-listing history dating back to 2024. These structural characteristics shape how BTCL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.87 indicates BTCL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BTCL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BTCL?
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.
BTCL snapshot
As of September 29, 2026, spot at $19.95, ATM IV 73.00%, IV rank 2.20%, expected move 20.93%. The collar on BTCL below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this collar structure on BTCL specifically: IV regime affects collar pricing on both sides; compressed BTCL IV at 73.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.93% (roughly $4.18 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BTCL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BTCL should anchor to the underlying notional of $19.95 per share and to the trader's directional view on BTCL etf.
BTCL collar setup
The BTCL collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BTCL at $19.95 on that close, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BTCL chain at a 17-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 BTCL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $19.95 | long |
| Sell 1 | Call | $21.00 | $0.85 |
| Buy 1 | Put | $19.00 | $0.80 |
BTCL collar risk and reward
- Net Premium / Debit
- -$1,990.00
- Max Profit (per contract)
- $110.00
- Max Loss (per contract)
- -$90.00
- Breakeven(s)
- $19.90
- Risk / Reward Ratio
- 1.222
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.
BTCL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BTCL. 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% | -$90.00 |
| $4.42 | -77.8% | -$90.00 |
| $8.83 | -55.7% | -$90.00 |
| $13.24 | -33.6% | -$90.00 |
| $17.65 | -11.5% | -$90.00 |
| $22.06 | +10.6% | +$110.00 |
| $26.47 | +32.7% | +$110.00 |
| $30.88 | +54.8% | +$110.00 |
| $35.29 | +76.9% | +$110.00 |
| $39.70 | +99.0% | +$110.00 |
When traders use collar on BTCL
Collars on BTCL hedge an existing long BTCL 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.
BTCL thesis for this collar
The market-implied 1-standard-deviation range for BTCL extends from approximately $15.77 on the downside to $24.13 on the upside. A BTCL collar hedges an existing long BTCL 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 BTCL IV rank near 2.20% 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 BTCL at 73.00%. As a Financial Services name, BTCL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BTCL-specific events.
BTCL 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. BTCL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BTCL alongside the broader basket even when BTCL-specific fundamentals are unchanged. Always rebuild the position from current BTCL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BTCL?
- A collar on BTCL is the collar strategy applied to BTCL (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 BTCL etf at $19.95 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed BTCL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BTCL 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 BTCL collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 73.00%), the computed maximum profit is $110.00 per contract and the computed maximum loss is -$90.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BTCL collar?
- The breakeven for the BTCL collar priced on this page is roughly $19.90 at expiration, derived from the September 29, 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 BTCL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BTCL?
- Collars on BTCL hedge an existing long BTCL 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 BTCL implied volatility affect this collar?
- BTCL ATM IV is at 73.00% with IV rank near 2.20%, 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.