CDEI Collar Strategy
CDEI (Calvert US Large-Cap Diversity, Equity And Inclusion Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under ordinary market conditions, the fund is mandated to dedicate at least 80% of its overall assets, including any borrowed capital utilized for investment, to the specific securities that constitute its benchmark index. This underlying index is comprised solely of the common equity shares of major corporations whose business operations align with the Calvert Principles for Responsible Investment. Furthermore, this fund operates as a non-diversified investment vehicle.
CDEI (Calvert US Large-Cap Diversity, Equity And Inclusion Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $32.4M, a beta of 0.98 versus the broader market, a 52-week range of 75.452-95.08, average daily share volume of 2K, a public-listing history dating back to 2023. These structural characteristics shape how CDEI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places CDEI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CDEI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CDEI?
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.
CDEI snapshot
As of August 14, 2026, spot at $95.06, ATM IV 35.40%, IV rank 41.72%, expected move 10.15%. The collar on CDEI below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on CDEI specifically: IV regime affects collar pricing on both sides; mid-range CDEI IV at 35.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.15% (roughly $9.65 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CDEI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDEI should anchor to the underlying notional of $95.06 per share and to the trader's directional view on CDEI etf.
CDEI collar setup
The CDEI 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 CDEI at $95.06 on that close, the first option leg uses a $99.81 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CDEI chain at a 35-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 CDEI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $95.06 | long |
| Sell 1 | Call | $99.81 | N/A |
| Buy 1 | Put | $90.31 | N/A |
CDEI 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.
CDEI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CDEI. 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 CDEI
Collars on CDEI hedge an existing long CDEI 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.
CDEI thesis for this collar
The market-implied 1-standard-deviation range for CDEI extends from approximately $85.41 on the downside to $104.71 on the upside. A CDEI collar hedges an existing long CDEI 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 CDEI IV rank near 41.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CDEI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CDEI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDEI-specific events.
CDEI 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. CDEI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CDEI alongside the broader basket even when CDEI-specific fundamentals are unchanged. Always rebuild the position from current CDEI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CDEI?
- A collar on CDEI is the collar strategy applied to CDEI (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 CDEI etf at $95.06 on the most recent close, the strikes shown on this page are snapped to the nearest listed CDEI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CDEI 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 CDEI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.40%), 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 CDEI collar?
- The breakeven for the CDEI collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 CDEI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CDEI?
- Collars on CDEI hedge an existing long CDEI 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 CDEI implied volatility affect this collar?
- CDEI ATM IV is at 35.40% with IV rank near 41.72%, 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.