CNBS Collar Strategy
CNBS (Amplify Seymour Cannabis ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
CNBS is an actively managed ETF that provides diversified U.S. exposure across the cannabis ecosystem including cannabis: plants, support, and ancillary businesses. CNBS seeks to provide capital appreciation.
CNBS (Amplify Seymour Cannabis ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $69.7M, a beta of 0.94 versus the broader market, a 52-week range of 13.96-43.94, average daily share volume of 16K, a public-listing history dating back to 2019. These structural characteristics shape how CNBS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places CNBS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CNBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CNBS?
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 CNBS snapshot
As of May 15, 2026, spot at $25.88, ATM IV 90.90%, IV rank 37.54%, expected move 26.06%. The collar on CNBS 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 CNBS specifically: IV regime affects collar pricing on both sides; mid-range CNBS IV at 90.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.06% (roughly $6.74 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 CNBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNBS should anchor to the underlying notional of $25.88 per share and to the trader's directional view on CNBS etf.
CNBS collar setup
The CNBS 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 CNBS near $25.88, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNBS 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 CNBS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.88 | long |
| Sell 1 | Call | $27.00 | $2.45 |
| Buy 1 | Put | $25.00 | $2.41 |
CNBS collar risk and reward
- Net Premium / Debit
- -$2,584.00
- Max Profit (per contract)
- $116.00
- Max Loss (per contract)
- -$84.00
- Breakeven(s)
- $25.84
- Risk / Reward Ratio
- 1.381
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.
CNBS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CNBS. 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% | -$84.00 |
| $5.73 | -77.9% | -$84.00 |
| $11.45 | -55.7% | -$84.00 |
| $17.17 | -33.6% | -$84.00 |
| $22.89 | -11.5% | -$84.00 |
| $28.62 | +10.6% | +$116.00 |
| $34.34 | +32.7% | +$116.00 |
| $40.06 | +54.8% | +$116.00 |
| $45.78 | +76.9% | +$116.00 |
| $51.50 | +99.0% | +$116.00 |
When traders use collar on CNBS
Collars on CNBS hedge an existing long CNBS 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.
CNBS thesis for this collar
The market-implied 1-standard-deviation range for CNBS extends from approximately $19.14 on the downside to $32.62 on the upside. A CNBS collar hedges an existing long CNBS 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 CNBS IV rank near 37.54% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CNBS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CNBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNBS-specific events.
CNBS 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. CNBS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNBS alongside the broader basket even when CNBS-specific fundamentals are unchanged. Always rebuild the position from current CNBS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CNBS?
- A collar on CNBS is the collar strategy applied to CNBS (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 CNBS etf trading near $25.88, the strikes shown on this page are snapped to the nearest listed CNBS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CNBS 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 CNBS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 90.90%), the computed maximum profit is $116.00 per contract and the computed maximum loss is -$84.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CNBS collar?
- The breakeven for the CNBS collar priced on this page is roughly $25.84 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 CNBS market-implied 1-standard-deviation expected move is approximately 26.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CNBS?
- Collars on CNBS hedge an existing long CNBS 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 CNBS implied volatility affect this collar?
- CNBS ATM IV is at 90.90% with IV rank near 37.54%, 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.