FDEV Collar Strategy
FDEV (Fidelity International Multifactor ETF), in the Financial Services sector, (Asset Management - Global industry), listed on CBOE.
This ETF offers investors exposure to a diverse selection of companies operating outside the United States. These holdings are strategically chosen based on their strong performance across several key investment factors, namely, attractive valuations (value), robust financial health (quality), reduced price fluctuations (low volatility), and positive recent price trends (momentum). Furthermore, a crucial objective is to identify companies that exhibit a lower degree of correlation with the U.S. stock market, thereby aiming to enhance portfolio diversification.
FDEV (Fidelity International Multifactor ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $275.8M, a beta of 0.65 versus the broader market, a 52-week range of 32.43-38.08, average daily share volume of 31K, a public-listing history dating back to 2019. These structural characteristics shape how FDEV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates FDEV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FDEV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FDEV?
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.
FDEV snapshot
As of August 14, 2026, spot at $37.91, ATM IV 26.20%, IV rank 20.75%, expected move 7.51%. The collar on FDEV below is built from the 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 FDEV specifically: IV regime affects collar pricing on both sides; compressed FDEV IV at 26.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.51% (roughly $2.85 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 FDEV expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDEV should anchor to the underlying notional of $37.91 per share and to the trader's directional view on FDEV etf.
FDEV collar setup
The FDEV 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 FDEV at $37.91 on that close, the first option leg uses a $39.81 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDEV 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 FDEV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $37.91 | long |
| Sell 1 | Call | $39.81 | N/A |
| Buy 1 | Put | $36.01 | N/A |
FDEV 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.
FDEV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FDEV. 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 FDEV
Collars on FDEV hedge an existing long FDEV 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.
FDEV thesis for this collar
The market-implied 1-standard-deviation range for FDEV extends from approximately $35.06 on the downside to $40.76 on the upside. A FDEV collar hedges an existing long FDEV 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 FDEV IV rank near 20.75% 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 FDEV at 26.20%. As a Financial Services name, FDEV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDEV-specific events.
FDEV 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. FDEV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FDEV alongside the broader basket even when FDEV-specific fundamentals are unchanged. Always rebuild the position from current FDEV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FDEV?
- A collar on FDEV is the collar strategy applied to FDEV (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 FDEV etf at $37.91 on the most recent close, the strikes shown on this page are snapped to the nearest listed FDEV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FDEV 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 FDEV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 26.20%), 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 FDEV collar?
- The breakeven for the FDEV collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 FDEV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FDEV?
- Collars on FDEV hedge an existing long FDEV 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 FDEV implied volatility affect this collar?
- FDEV ATM IV is at 26.20% with IV rank near 20.75%, 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.