EPI Collar Strategy
EPI (WisdomTree India Earnings Fund), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
WisdomTree India Earnings Fund seeks to track the investment results of profitable companies in the Indian equity market. EPI offers exposure to Indian equities, weighting individual holdings by earnings instead of market capitalization. The fund tracks the WisdomTree India Earnings Index, which is composed of profitable companies incorporated and traded in India and weighted based on their earnings.
EPI (WisdomTree India Earnings Fund) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $1.87B, a beta of 0.54 versus the broader market, a 52-week range of 39.36-46.83, average daily share volume of 418K, a public-listing history dating back to 2008. These structural characteristics shape how EPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.54 indicates EPI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on EPI?
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.
EPI snapshot
As of November 13, 2026, spot at $44.05, ATM IV 17.60%, IV rank 31.45%, expected move 5.05%. The collar on EPI below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on EPI specifically: IV regime affects collar pricing on both sides; mid-range EPI IV at 17.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.05% (roughly $2.22 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on EPI should anchor to the underlying notional of $44.05 per share and to the trader's directional view on EPI etf.
EPI collar setup
The EPI collar below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With EPI at $44.05 on that close, the first option leg uses a $46.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EPI chain at a 35-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 EPI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $44.05 | long |
| Sell 1 | Call | $46.00 | $0.25 |
| Buy 1 | Put | $42.00 | $0.43 |
EPI collar risk and reward
- Net Premium / Debit
- -$4,422.50
- Max Profit (per contract)
- $177.50
- Max Loss (per contract)
- -$222.50
- Breakeven(s)
- $44.23
- Risk / Reward Ratio
- 0.798
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.
EPI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EPI. 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% | -$222.50 |
| $9.75 | -77.9% | -$222.50 |
| $19.49 | -55.8% | -$222.50 |
| $29.23 | -33.7% | -$222.50 |
| $38.96 | -11.5% | -$222.50 |
| $48.70 | +10.6% | +$177.50 |
| $58.44 | +32.7% | +$177.50 |
| $68.18 | +54.8% | +$177.50 |
| $77.92 | +76.9% | +$177.50 |
| $87.66 | +99.0% | +$177.50 |
When traders use collar on EPI
Collars on EPI hedge an existing long EPI 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.
EPI thesis for this collar
The market-implied 1-standard-deviation range for EPI extends from approximately $41.83 on the downside to $46.27 on the upside. A EPI collar hedges an existing long EPI 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 EPI IV rank near 31.45% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on EPI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, EPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EPI-specific events.
EPI 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. EPI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EPI alongside the broader basket even when EPI-specific fundamentals are unchanged. Always rebuild the position from current EPI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EPI?
- A collar on EPI is the collar strategy applied to EPI (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 EPI etf at $44.05 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed EPI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are EPI 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 EPI collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 17.60%), the computed maximum profit is $177.50 per contract and the computed maximum loss is -$222.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EPI collar?
- The breakeven for the EPI collar priced on this page is roughly $44.23 at expiration, derived from the November 13, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The EPI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EPI?
- Collars on EPI hedge an existing long EPI 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 EPI implied volatility affect this collar?
- EPI ATM IV is at 17.60% with IV rank near 31.45%, 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.