EZM Collar Strategy
EZM (WisdomTree U.S. MidCap Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Generally, the WisdomTree U.S. MidCap Fund dedicates a minimum of 95% of its total assets (excluding collateral from securities lending) to either the constituent securities of its underlying index or to investments that mirror their economic characteristics. Its underlying index employs a fundamental weighting strategy, focusing on profitable, mid-capitalization U.S. companies. Furthermore, this fund is classified as non-diversified.
EZM (WisdomTree U.S. MidCap Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $891.1M, a beta of 1.05 versus the broader market, a 52-week range of 61.4-76.09, average daily share volume of 22K, a public-listing history dating back to 2007. These structural characteristics shape how EZM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places EZM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EZM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EZM?
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 EZM snapshot
As of June 30, 2026, spot at $75.78, ATM IV 23.50%, IV rank 3.04%, expected move 6.74%. The collar on EZM 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 17-day expiry.
Why this collar structure on EZM specifically: IV regime affects collar pricing on both sides; compressed EZM IV at 23.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.74% (roughly $5.11 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EZM expiries trade a higher absolute premium for lower per-day decay. Position sizing on EZM should anchor to the underlying notional of $75.78 per share and to the trader's directional view on EZM etf.
EZM collar setup
The EZM 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 EZM near $75.78, 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 EZM chain at a 17-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 EZM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $75.78 | long |
| Sell 1 | Call | $80.00 | $0.06 |
| Buy 1 | Put | $72.00 | $0.13 |
EZM collar risk and reward
- Net Premium / Debit
- -$7,585.00
- Max Profit (per contract)
- $415.00
- Max Loss (per contract)
- -$385.00
- Breakeven(s)
- $75.85
- Risk / Reward Ratio
- 1.078
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.
EZM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EZM. 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% | -$385.00 |
| $16.76 | -77.9% | -$385.00 |
| $33.52 | -55.8% | -$385.00 |
| $50.27 | -33.7% | -$385.00 |
| $67.03 | -11.6% | -$385.00 |
| $83.78 | +10.6% | +$415.00 |
| $100.54 | +32.7% | +$415.00 |
| $117.29 | +54.8% | +$415.00 |
| $134.04 | +76.9% | +$415.00 |
| $150.80 | +99.0% | +$415.00 |
When traders use collar on EZM
Collars on EZM hedge an existing long EZM 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.
EZM thesis for this collar
The market-implied 1-standard-deviation range for EZM extends from approximately $70.67 on the downside to $80.89 on the upside. A EZM collar hedges an existing long EZM 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 EZM IV rank near 3.04% 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 EZM at 23.50%. As a Financial Services name, EZM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EZM-specific events.
EZM 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. EZM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EZM alongside the broader basket even when EZM-specific fundamentals are unchanged. Always rebuild the position from current EZM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EZM?
- A collar on EZM is the collar strategy applied to EZM (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 EZM etf trading near $75.78, the strikes shown on this page are snapped to the nearest listed EZM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EZM 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 EZM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.50%), the computed maximum profit is $415.00 per contract and the computed maximum loss is -$385.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EZM collar?
- The breakeven for the EZM collar priced on this page is roughly $75.85 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 EZM market-implied 1-standard-deviation expected move is approximately 6.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EZM?
- Collars on EZM hedge an existing long EZM 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 EZM implied volatility affect this collar?
- EZM ATM IV is at 23.50% with IV rank near 3.04%, 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.