CHPS Collar Strategy
CHPS (Xtrackers Semiconductor Select Equity ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Xtrackers Semiconductor Select Equity ETF (the “fund”) seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive Semiconductor ESG Screened Index (the “Underlying Index”).
CHPS (Xtrackers Semiconductor Select Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $19.6M, a beta of 2.13 versus the broader market, a 52-week range of 29.31-86.66, average daily share volume of 23K, a public-listing history dating back to 2023. These structural characteristics shape how CHPS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.13 indicates CHPS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CHPS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CHPS?
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 CHPS snapshot
As of May 15, 2026, spot at $82.32, ATM IV 43.70%, IV rank 4.26%, expected move 12.53%. The collar on CHPS 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 CHPS specifically: IV regime affects collar pricing on both sides; compressed CHPS IV at 43.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.53% (roughly $10.31 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 CHPS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHPS should anchor to the underlying notional of $82.32 per share and to the trader's directional view on CHPS etf.
CHPS collar setup
The CHPS 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 CHPS near $82.32, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHPS 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 CHPS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $82.32 | long |
| Sell 1 | Call | $85.00 | $3.15 |
| Buy 1 | Put | $80.00 | $3.33 |
CHPS collar risk and reward
- Net Premium / Debit
- -$8,249.50
- Max Profit (per contract)
- $250.50
- Max Loss (per contract)
- -$249.50
- Breakeven(s)
- $82.50
- Risk / Reward Ratio
- 1.004
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.
CHPS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CHPS. 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% | -$249.50 |
| $18.21 | -77.9% | -$249.50 |
| $36.41 | -55.8% | -$249.50 |
| $54.61 | -33.7% | -$249.50 |
| $72.81 | -11.6% | -$249.50 |
| $91.01 | +10.6% | +$250.50 |
| $109.21 | +32.7% | +$250.50 |
| $127.41 | +54.8% | +$250.50 |
| $145.61 | +76.9% | +$250.50 |
| $163.81 | +99.0% | +$250.50 |
When traders use collar on CHPS
Collars on CHPS hedge an existing long CHPS 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.
CHPS thesis for this collar
The market-implied 1-standard-deviation range for CHPS extends from approximately $72.01 on the downside to $92.63 on the upside. A CHPS collar hedges an existing long CHPS 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 CHPS IV rank near 4.26% 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 CHPS at 43.70%. As a Financial Services name, CHPS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHPS-specific events.
CHPS 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. CHPS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHPS alongside the broader basket even when CHPS-specific fundamentals are unchanged. Always rebuild the position from current CHPS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CHPS?
- A collar on CHPS is the collar strategy applied to CHPS (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 CHPS etf trading near $82.32, the strikes shown on this page are snapped to the nearest listed CHPS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CHPS 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 CHPS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.70%), the computed maximum profit is $250.50 per contract and the computed maximum loss is -$249.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CHPS collar?
- The breakeven for the CHPS collar priced on this page is roughly $82.50 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 CHPS market-implied 1-standard-deviation expected move is approximately 12.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CHPS?
- Collars on CHPS hedge an existing long CHPS 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 CHPS implied volatility affect this collar?
- CHPS ATM IV is at 43.70% with IV rank near 4.26%, 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.