CAFG Collar Strategy
CAFG (Pacer US Small Cap Cash Cows Growth Leaders ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
A strategy-driven exchange traded fund that aims to identify top growth companies in the S&P SmallCap 600 Index by screening for above average free cash flow margins.
CAFG (Pacer US Small Cap Cash Cows Growth Leaders ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $22.4M, a beta of 1.03 versus the broader market, a 52-week range of 23.675-31.65, average daily share volume of 2K, a public-listing history dating back to 2023. These structural characteristics shape how CAFG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places CAFG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CAFG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CAFG?
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 CAFG snapshot
As of May 15, 2026, spot at $30.75, ATM IV 38.60%, IV rank 3.06%, expected move 11.07%. The collar on CAFG 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 CAFG specifically: IV regime affects collar pricing on both sides; compressed CAFG IV at 38.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.07% (roughly $3.40 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 CAFG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CAFG should anchor to the underlying notional of $30.75 per share and to the trader's directional view on CAFG etf.
CAFG collar setup
The CAFG 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 CAFG near $30.75, the first option leg uses a $32.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CAFG 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 CAFG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.75 | long |
| Sell 1 | Call | $32.29 | N/A |
| Buy 1 | Put | $29.21 | N/A |
CAFG 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.
CAFG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CAFG. 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 CAFG
Collars on CAFG hedge an existing long CAFG 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.
CAFG thesis for this collar
The market-implied 1-standard-deviation range for CAFG extends from approximately $27.35 on the downside to $34.15 on the upside. A CAFG collar hedges an existing long CAFG 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 CAFG IV rank near 3.06% 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 CAFG at 38.60%. As a Financial Services name, CAFG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CAFG-specific events.
CAFG 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. CAFG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CAFG alongside the broader basket even when CAFG-specific fundamentals are unchanged. Always rebuild the position from current CAFG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CAFG?
- A collar on CAFG is the collar strategy applied to CAFG (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 CAFG etf trading near $30.75, the strikes shown on this page are snapped to the nearest listed CAFG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CAFG 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 CAFG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.60%), 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 CAFG collar?
- The breakeven for the CAFG 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 CAFG market-implied 1-standard-deviation expected move is approximately 11.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CAFG?
- Collars on CAFG hedge an existing long CAFG 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 CAFG implied volatility affect this collar?
- CAFG ATM IV is at 38.60% with IV rank near 3.06%, 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.