CMDY Collar Strategy
CMDY (iShares Bloomberg Roll Select Commodity Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares Bloomberg Roll Select Commodity Strategy ETF (the “Fund”) seeks to track the investment results of an index composed of a broad range of commodity exposures with enhanced roll selection, on a total return basis.
CMDY (iShares Bloomberg Roll Select Commodity Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $347.0M, a beta of 0.91 versus the broader market, a 52-week range of 47.635-63.7572, average daily share volume of 78K, a public-listing history dating back to 2018. These structural characteristics shape how CMDY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places CMDY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CMDY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CMDY?
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 CMDY snapshot
As of May 15, 2026, spot at $62.30, ATM IV 23.50%, IV rank 17.02%, expected move 6.74%. The collar on CMDY 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 CMDY specifically: IV regime affects collar pricing on both sides; compressed CMDY IV at 23.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.74% (roughly $4.20 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 CMDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on CMDY should anchor to the underlying notional of $62.30 per share and to the trader's directional view on CMDY etf.
CMDY collar setup
The CMDY 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 CMDY near $62.30, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CMDY 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 CMDY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $62.30 | long |
| Sell 1 | Call | $65.00 | $0.97 |
| Buy 1 | Put | $59.00 | $0.63 |
CMDY collar risk and reward
- Net Premium / Debit
- -$6,196.00
- Max Profit (per contract)
- $304.00
- Max Loss (per contract)
- -$296.00
- Breakeven(s)
- $61.96
- Risk / Reward Ratio
- 1.027
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.
CMDY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CMDY. 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% | -$296.00 |
| $13.78 | -77.9% | -$296.00 |
| $27.56 | -55.8% | -$296.00 |
| $41.33 | -33.7% | -$296.00 |
| $55.11 | -11.5% | -$296.00 |
| $68.88 | +10.6% | +$304.00 |
| $82.65 | +32.7% | +$304.00 |
| $96.43 | +54.8% | +$304.00 |
| $110.20 | +76.9% | +$304.00 |
| $123.97 | +99.0% | +$304.00 |
When traders use collar on CMDY
Collars on CMDY hedge an existing long CMDY 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.
CMDY thesis for this collar
The market-implied 1-standard-deviation range for CMDY extends from approximately $58.10 on the downside to $66.50 on the upside. A CMDY collar hedges an existing long CMDY 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 CMDY IV rank near 17.02% 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 CMDY at 23.50%. As a Financial Services name, CMDY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CMDY-specific events.
CMDY 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. CMDY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CMDY alongside the broader basket even when CMDY-specific fundamentals are unchanged. Always rebuild the position from current CMDY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CMDY?
- A collar on CMDY is the collar strategy applied to CMDY (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 CMDY etf trading near $62.30, the strikes shown on this page are snapped to the nearest listed CMDY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CMDY 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 CMDY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.50%), the computed maximum profit is $304.00 per contract and the computed maximum loss is -$296.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CMDY collar?
- The breakeven for the CMDY collar priced on this page is roughly $61.96 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 CMDY market-implied 1-standard-deviation expected move is approximately 6.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CMDY?
- Collars on CMDY hedge an existing long CMDY 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 CMDY implied volatility affect this collar?
- CMDY ATM IV is at 23.50% with IV rank near 17.02%, 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.