EES Collar Strategy
EES (WisdomTree U.S. SmallCap Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under normal circumstances, at least 95% of the fund's total assets (exclusive of collateral held from securities lending) will be invested in component securities of the index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The index is a fundamentally weighted index that is comprised of earnings-generating companies within the small-capitalization segment of the U.S. stock market. The fund is non-diversified.
EES (WisdomTree U.S. SmallCap Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $671.3M, a beta of 1.15 versus the broader market, a 52-week range of 47.86-64.66, average daily share volume of 18K, a public-listing history dating back to 2007. These structural characteristics shape how EES etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.15 places EES roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EES pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EES?
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 EES snapshot
As of May 15, 2026, spot at $62.13, ATM IV 26.80%, IV rank 8.94%, expected move 7.68%. The collar on EES 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 EES specifically: IV regime affects collar pricing on both sides; compressed EES IV at 26.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.68% (roughly $4.77 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 EES expiries trade a higher absolute premium for lower per-day decay. Position sizing on EES should anchor to the underlying notional of $62.13 per share and to the trader's directional view on EES etf.
EES collar setup
The EES 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 EES near $62.13, the first option leg uses a $65.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EES 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 EES shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $62.13 | long |
| Sell 1 | Call | $65.24 | N/A |
| Buy 1 | Put | $59.02 | N/A |
EES 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.
EES collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EES. 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 EES
Collars on EES hedge an existing long EES 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.
EES thesis for this collar
The market-implied 1-standard-deviation range for EES extends from approximately $57.36 on the downside to $66.90 on the upside. A EES collar hedges an existing long EES 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 EES IV rank near 8.94% 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 EES at 26.80%. As a Financial Services name, EES options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EES-specific events.
EES 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. EES positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EES alongside the broader basket even when EES-specific fundamentals are unchanged. Always rebuild the position from current EES chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EES?
- A collar on EES is the collar strategy applied to EES (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 EES etf trading near $62.13, the strikes shown on this page are snapped to the nearest listed EES chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EES 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 EES collar priced from the end-of-day chain at a 30-day expiry (ATM IV 26.80%), 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 EES collar?
- The breakeven for the EES 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 EES market-implied 1-standard-deviation expected move is approximately 7.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EES?
- Collars on EES hedge an existing long EES 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 EES implied volatility affect this collar?
- EES ATM IV is at 26.80% with IV rank near 8.94%, 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.