CSD Collar Strategy
CSD (Invesco S&P Spin-Off ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco S&P Spin-Off ETF (Fund) is based on the S&P U.S. Spin-Off Index (Index). The Fund will invest at least 90% of its total assets in securities and depositary receipts that comprise the Index. The Index is composed of companies that have been spun off from larger corporations within the past four years. The Index is computed using the gross total return, which reflects dividends paid. The Fund and the Index are rebalanced monthly.
CSD (Invesco S&P Spin-Off ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $111.2M, a beta of 1.25 versus the broader market, a 52-week range of 78.27-138.15, average daily share volume of 12K, a public-listing history dating back to 2006. These structural characteristics shape how CSD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.25 places CSD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CSD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CSD?
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 CSD snapshot
As of May 15, 2026, spot at $133.58, ATM IV 23.40%, IV rank 1.19%, expected move 6.71%. The collar on CSD 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 CSD specifically: IV regime affects collar pricing on both sides; compressed CSD IV at 23.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.71% (roughly $8.96 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 CSD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSD should anchor to the underlying notional of $133.58 per share and to the trader's directional view on CSD etf.
CSD collar setup
The CSD 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 CSD near $133.58, the first option leg uses a $139.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSD 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 CSD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $133.58 | long |
| Sell 1 | Call | $139.00 | $1.77 |
| Buy 1 | Put | $127.00 | $1.32 |
CSD collar risk and reward
- Net Premium / Debit
- -$13,313.00
- Max Profit (per contract)
- $587.00
- Max Loss (per contract)
- -$613.00
- Breakeven(s)
- $133.13
- Risk / Reward Ratio
- 0.958
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.
CSD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CSD. 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% | -$613.00 |
| $29.54 | -77.9% | -$613.00 |
| $59.08 | -55.8% | -$613.00 |
| $88.61 | -33.7% | -$613.00 |
| $118.15 | -11.6% | -$613.00 |
| $147.68 | +10.6% | +$587.00 |
| $177.22 | +32.7% | +$587.00 |
| $206.75 | +54.8% | +$587.00 |
| $236.28 | +76.9% | +$587.00 |
| $265.82 | +99.0% | +$587.00 |
When traders use collar on CSD
Collars on CSD hedge an existing long CSD 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.
CSD thesis for this collar
The market-implied 1-standard-deviation range for CSD extends from approximately $124.62 on the downside to $142.54 on the upside. A CSD collar hedges an existing long CSD 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 CSD IV rank near 1.19% 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 CSD at 23.40%. As a Financial Services name, CSD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSD-specific events.
CSD 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. CSD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CSD alongside the broader basket even when CSD-specific fundamentals are unchanged. Always rebuild the position from current CSD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CSD?
- A collar on CSD is the collar strategy applied to CSD (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 CSD etf trading near $133.58, the strikes shown on this page are snapped to the nearest listed CSD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CSD 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 CSD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.40%), the computed maximum profit is $587.00 per contract and the computed maximum loss is -$613.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CSD collar?
- The breakeven for the CSD collar priced on this page is roughly $133.13 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 CSD market-implied 1-standard-deviation expected move is approximately 6.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CSD?
- Collars on CSD hedge an existing long CSD 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 CSD implied volatility affect this collar?
- CSD ATM IV is at 23.40% with IV rank near 1.19%, 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.