EMXC Collar Strategy
EMXC (iShares MSCI Emerging Markets ex China ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The iShares MSCI Emerging Markets ex China ETF seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities, excluding China.
EMXC (iShares MSCI Emerging Markets ex China ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $18.40B, a beta of 1.11 versus the broader market, a 52-week range of 58.92-98.305, average daily share volume of 4.0M, a public-listing history dating back to 2017. These structural characteristics shape how EMXC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places EMXC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EMXC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EMXC?
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 EMXC snapshot
As of May 15, 2026, spot at $93.66, ATM IV 31.20%, IV rank 74.86%, expected move 8.94%. The collar on EMXC 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 EMXC specifically: IV regime affects collar pricing on both sides; elevated EMXC IV at 31.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.94% (roughly $8.38 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 EMXC expiries trade a higher absolute premium for lower per-day decay. Position sizing on EMXC should anchor to the underlying notional of $93.66 per share and to the trader's directional view on EMXC etf.
EMXC collar setup
The EMXC 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 EMXC near $93.66, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EMXC 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 EMXC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $93.66 | long |
| Sell 1 | Call | $100.00 | $1.21 |
| Buy 1 | Put | $90.00 | $2.13 |
EMXC collar risk and reward
- Net Premium / Debit
- -$9,457.50
- Max Profit (per contract)
- $542.50
- Max Loss (per contract)
- -$457.50
- Breakeven(s)
- $94.58
- Risk / Reward Ratio
- 1.186
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.
EMXC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EMXC. 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% | -$457.50 |
| $20.72 | -77.9% | -$457.50 |
| $41.43 | -55.8% | -$457.50 |
| $62.13 | -33.7% | -$457.50 |
| $82.84 | -11.6% | -$457.50 |
| $103.55 | +10.6% | +$542.50 |
| $124.26 | +32.7% | +$542.50 |
| $144.96 | +54.8% | +$542.50 |
| $165.67 | +76.9% | +$542.50 |
| $186.38 | +99.0% | +$542.50 |
When traders use collar on EMXC
Collars on EMXC hedge an existing long EMXC 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.
EMXC thesis for this collar
The market-implied 1-standard-deviation range for EMXC extends from approximately $85.28 on the downside to $102.04 on the upside. A EMXC collar hedges an existing long EMXC 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 EMXC IV rank near 74.86% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on EMXC at 31.20%. As a Financial Services name, EMXC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EMXC-specific events.
EMXC 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. EMXC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EMXC alongside the broader basket even when EMXC-specific fundamentals are unchanged. Always rebuild the position from current EMXC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EMXC?
- A collar on EMXC is the collar strategy applied to EMXC (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 EMXC etf trading near $93.66, the strikes shown on this page are snapped to the nearest listed EMXC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EMXC 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 EMXC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 31.20%), the computed maximum profit is $542.50 per contract and the computed maximum loss is -$457.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EMXC collar?
- The breakeven for the EMXC collar priced on this page is roughly $94.58 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 EMXC market-implied 1-standard-deviation expected move is approximately 8.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EMXC?
- Collars on EMXC hedge an existing long EMXC 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 EMXC implied volatility affect this collar?
- EMXC ATM IV is at 31.20% with IV rank near 74.86%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.