DISO Collar Strategy
DISO (YieldMax DIS Option Income Strategy ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.
The YieldMax DIS Option Income Strategy ETF (DISO) is an actively managed exchange-traded fund that seeks to generate weekly income by selling call options or call spreads on DIS. The strategy is designed to capture option premiums while providing participation in the share price appreciation of DIS.
DISO (YieldMax DIS Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $32.9M, a beta of 0.98 versus the broader market, a 52-week range of 9.53-14.99, average daily share volume of 27K, a public-listing history dating back to 2023. These structural characteristics shape how DISO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places DISO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DISO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on DISO?
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 DISO snapshot
As of May 15, 2026, spot at $9.79, ATM IV 72.10%, IV rank 39.31%, expected move 20.67%. The collar on DISO 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 DISO specifically: IV regime affects collar pricing on both sides; mid-range DISO IV at 72.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.67% (roughly $2.02 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 DISO expiries trade a higher absolute premium for lower per-day decay. Position sizing on DISO should anchor to the underlying notional of $9.79 per share and to the trader's directional view on DISO etf.
DISO collar setup
The DISO 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 DISO near $9.79, the first option leg uses a $10.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DISO 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 DISO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.79 | long |
| Sell 1 | Call | $10.28 | N/A |
| Buy 1 | Put | $9.30 | N/A |
DISO collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
DISO collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DISO. 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.
When traders use collar on DISO
Collars on DISO hedge an existing long DISO 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.
DISO thesis for this collar
The market-implied 1-standard-deviation range for DISO extends from approximately $7.77 on the downside to $11.81 on the upside. A DISO collar hedges an existing long DISO 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 DISO IV rank near 39.31% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on DISO should anchor more to the directional view and the expected-move geometry. As a Financial Services name, DISO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DISO-specific events.
DISO 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. DISO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DISO alongside the broader basket even when DISO-specific fundamentals are unchanged. Always rebuild the position from current DISO chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DISO?
- A collar on DISO is the collar strategy applied to DISO (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 DISO etf trading near $9.79, the strikes shown on this page are snapped to the nearest listed DISO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DISO 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 DISO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 72.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DISO collar?
- The breakeven for the DISO collar priced on this page is no defined breakeven on the modeled curve 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 DISO market-implied 1-standard-deviation expected move is approximately 20.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DISO?
- Collars on DISO hedge an existing long DISO 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 DISO implied volatility affect this collar?
- DISO ATM IV is at 72.10% with IV rank near 39.31%, 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.