How are COSW 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 COSW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.50%), the computed maximum profit is $202.00 per contract and the computed maximum loss is -$198.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a COSW collar?

The breakeven for the COSW collar priced on this page is roughly $39.98 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 COSW market-implied 1-standard-deviation expected move is approximately 7.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current COSW implied volatility affect this collar?

COSW ATM IV is at 24.50% with IV rank near 34.87%, 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.

COSW Collar Strategy

COSW (Roundhill COST WeeklyPay ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

The Roundhill COST WeeklyPay ETF (COSW) is designed to offer investors a blend of regular weekly income and moderately enhanced exposure to the weekly price movements of COST stock. It achieves this objective by investing in total return swap agreements and directly in COST common stock, collectively targeting approximately 120% of the underlying stock's calendar week return. This effectively provides 1.2x leveraged exposure to a single company's shares. Shareholders can expect weekly distribution payments. To secure its investments, the fund allocates capital to short-term US Treasurys and money market funds as collateral. Investors should be aware that COSW introduces heightened volatility compared to traditional ETFs.

COSW (Roundhill COST WeeklyPay ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $12.1M, a beta of 0.10 versus the broader market, a 52-week range of 40.31-50.32, average daily share volume of 5K, a public-listing history dating back to 2025. These structural characteristics shape how COSW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.10 indicates COSW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. COSW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on COSW?

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 COSW snapshot

As of June 30, 2026, spot at $40.17, ATM IV 24.50%, IV rank 34.87%, expected move 7.02%. The collar on COSW 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 17-day expiry.

Why this collar structure on COSW specifically: IV regime affects collar pricing on both sides; mid-range COSW IV at 24.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.02% (roughly $2.82 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COSW expiries trade a higher absolute premium for lower per-day decay. Position sizing on COSW should anchor to the underlying notional of $40.17 per share and to the trader's directional view on COSW etf.

COSW collar setup

The COSW 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 COSW near $40.17, the first option leg uses a $42.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COSW chain at a 17-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 COSW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$40.17	long
Sell 1	Call	$42.00	$0.72
Buy 1	Put	$38.00	$0.53

COSW collar risk and reward

Net Premium / Debit: -$3,998.00
Max Profit (per contract): $202.00
Max Loss (per contract): -$198.00
Breakeven(s): $39.98
Risk / Reward Ratio: 1.020

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.

COSW collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on COSW. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$198.00
$8.89	-77.9%	-$198.00
$17.77	-55.8%	-$198.00
$26.65	-33.7%	-$198.00
$35.53	-11.5%	-$198.00
$44.41	+10.6%	+$202.00
$53.29	+32.7%	+$202.00
$62.17	+54.8%	+$202.00
$71.06	+76.9%	+$202.00
$79.94	+99.0%	+$202.00

When traders use collar on COSW

Collars on COSW hedge an existing long COSW 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.

COSW thesis for this collar

The market-implied 1-standard-deviation range for COSW extends from approximately $37.35 on the downside to $42.99 on the upside. A COSW collar hedges an existing long COSW 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 COSW IV rank near 34.87% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on COSW should anchor more to the directional view and the expected-move geometry. As a Financial Services name, COSW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COSW-specific events.

COSW 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. COSW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COSW alongside the broader basket even when COSW-specific fundamentals are unchanged. Always rebuild the position from current COSW chain quotes before placing a trade.

Frequently asked questions

What is a collar on COSW?: A collar on COSW is the collar strategy applied to COSW (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 COSW etf trading near $40.17, the strikes shown on this page are snapped to the nearest listed COSW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are COSW 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 COSW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.50%), the computed maximum profit is $202.00 per contract and the computed maximum loss is -$198.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a COSW collar?: The breakeven for the COSW collar priced on this page is roughly $39.98 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 COSW market-implied 1-standard-deviation expected move is approximately 7.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on COSW?: Collars on COSW hedge an existing long COSW 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 COSW implied volatility affect this collar?: COSW ATM IV is at 24.50% with IV rank near 34.87%, 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.