EZM Collar Strategy
EZM (WisdomTree U.S. MidCap 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 mid-capitalization segment of the U.S. stock market. The fund is non-diversified.
EZM (WisdomTree U.S. MidCap Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $878.5M, a beta of 1.08 versus the broader market, a 52-week range of 59.12-73.43, average daily share volume of 24K, 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 1.08 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 May 15, 2026, spot at $71.01, ATM IV 19.20%, IV rank 1.79%, expected move 5.50%. 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 34-day expiry.
Why this collar structure on EZM specifically: IV regime affects collar pricing on both sides; compressed EZM IV at 19.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.50% (roughly $3.91 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 EZM expiries trade a higher absolute premium for lower per-day decay. Position sizing on EZM should anchor to the underlying notional of $71.01 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 $71.01, the first option leg uses a $75.00 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 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 EZM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $71.01 | long |
| Sell 1 | Call | $75.00 | $0.37 |
| Buy 1 | Put | $67.00 | $0.41 |
EZM collar risk and reward
- Net Premium / Debit
- -$7,105.00
- Max Profit (per contract)
- $395.00
- Max Loss (per contract)
- -$405.00
- Breakeven(s)
- $71.05
- Risk / Reward Ratio
- 0.975
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% | -$405.00 |
| $15.71 | -77.9% | -$405.00 |
| $31.41 | -55.8% | -$405.00 |
| $47.11 | -33.7% | -$405.00 |
| $62.81 | -11.5% | -$405.00 |
| $78.51 | +10.6% | +$395.00 |
| $94.21 | +32.7% | +$395.00 |
| $109.91 | +54.8% | +$395.00 |
| $125.61 | +76.9% | +$395.00 |
| $141.31 | +99.0% | +$395.00 |
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 $67.10 on the downside to $74.92 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 1.79% 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 19.20%. 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 $71.01, 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 19.20%), the computed maximum profit is $395.00 per contract and the computed maximum loss is -$405.00 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 $71.05 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 5.50%; 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 19.20% with IV rank near 1.79%, 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.