EEMS Collar Strategy
EEMS (iShares MSCI Emerging Markets Small-Cap ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares MSCI Emerging Markets Small-Cap ETF seeks to track the investment results of an index composed of small-capitalization emerging market equities.
EEMS (iShares MSCI Emerging Markets Small-Cap ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $443.2M, a beta of 0.87 versus the broader market, a 52-week range of 60.14-79.44, average daily share volume of 19K, a public-listing history dating back to 2011. These structural characteristics shape how EEMS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places EEMS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EEMS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EEMS?
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 EEMS snapshot
As of May 15, 2026, spot at $76.04, ATM IV 24.40%, IV rank 48.46%, expected move 7.00%. The collar on EEMS 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 EEMS specifically: IV regime affects collar pricing on both sides; mid-range EEMS IV at 24.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.00% (roughly $5.32 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 EEMS expiries trade a higher absolute premium for lower per-day decay. Position sizing on EEMS should anchor to the underlying notional of $76.04 per share and to the trader's directional view on EEMS etf.
EEMS collar setup
The EEMS 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 EEMS near $76.04, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EEMS 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 EEMS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $76.04 | long |
| Sell 1 | Call | $80.00 | $0.50 |
| Buy 1 | Put | $72.00 | $1.04 |
EEMS collar risk and reward
- Net Premium / Debit
- -$7,658.00
- Max Profit (per contract)
- $342.00
- Max Loss (per contract)
- -$458.00
- Breakeven(s)
- $76.58
- Risk / Reward Ratio
- 0.747
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.
EEMS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EEMS. 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% | -$458.00 |
| $16.82 | -77.9% | -$458.00 |
| $33.63 | -55.8% | -$458.00 |
| $50.45 | -33.7% | -$458.00 |
| $67.26 | -11.6% | -$458.00 |
| $84.07 | +10.6% | +$342.00 |
| $100.88 | +32.7% | +$342.00 |
| $117.69 | +54.8% | +$342.00 |
| $134.50 | +76.9% | +$342.00 |
| $151.32 | +99.0% | +$342.00 |
When traders use collar on EEMS
Collars on EEMS hedge an existing long EEMS 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.
EEMS thesis for this collar
The market-implied 1-standard-deviation range for EEMS extends from approximately $70.72 on the downside to $81.36 on the upside. A EEMS collar hedges an existing long EEMS 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 EEMS IV rank near 48.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on EEMS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, EEMS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EEMS-specific events.
EEMS 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. EEMS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EEMS alongside the broader basket even when EEMS-specific fundamentals are unchanged. Always rebuild the position from current EEMS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EEMS?
- A collar on EEMS is the collar strategy applied to EEMS (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 EEMS etf trading near $76.04, the strikes shown on this page are snapped to the nearest listed EEMS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EEMS 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 EEMS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.40%), the computed maximum profit is $342.00 per contract and the computed maximum loss is -$458.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EEMS collar?
- The breakeven for the EEMS collar priced on this page is roughly $76.58 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 EEMS market-implied 1-standard-deviation expected move is approximately 7.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EEMS?
- Collars on EEMS hedge an existing long EEMS 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 EEMS implied volatility affect this collar?
- EEMS ATM IV is at 24.40% with IV rank near 48.46%, 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.