FDIS Collar Strategy
FDIS (Fidelity MSCI Consumer Discretionary Index ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
It aims to reflect the investment returns of the MSCI USA IMI Consumer Discretionary 25/50 Index.
FDIS (Fidelity MSCI Consumer Discretionary Index ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $1.61B, a beta of 1.24 versus the broader market, a 52-week range of 89.95-107.45, average daily share volume of 88K, a public-listing history dating back to 2013. These structural characteristics shape how FDIS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places FDIS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FDIS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FDIS?
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.
FDIS snapshot
As of September 29, 2026, spot at $95.06, ATM IV 488.40%, IV rank 100.00%, expected move 140.02%. The collar on FDIS below is built from the September 29, 2026 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 FDIS specifically: IV regime affects collar pricing on both sides; elevated FDIS IV at 488.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 140.02% (roughly $133.10 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 FDIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDIS should anchor to the underlying notional of $95.06 per share and to the trader's directional view on FDIS etf.
FDIS collar setup
The FDIS collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FDIS at $95.06 on that close, 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 FDIS 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 FDIS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $95.06 | long |
| Sell 1 | Call | $100.00 | $0.17 |
| Buy 1 | Put | $92.00 | $0.44 |
FDIS collar risk and reward
- Net Premium / Debit
- -$9,533.00
- Max Profit (per contract)
- $467.00
- Max Loss (per contract)
- -$333.00
- Breakeven(s)
- $95.33
- Risk / Reward Ratio
- 1.402
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.
FDIS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FDIS. 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% | -$333.00 |
| $21.03 | -77.9% | -$333.00 |
| $42.04 | -55.8% | -$333.00 |
| $63.06 | -33.7% | -$333.00 |
| $84.08 | -11.6% | -$333.00 |
| $105.10 | +10.6% | +$467.00 |
| $126.11 | +32.7% | +$467.00 |
| $147.13 | +54.8% | +$467.00 |
| $168.15 | +76.9% | +$467.00 |
| $189.16 | +99.0% | +$467.00 |
When traders use collar on FDIS
Collars on FDIS hedge an existing long FDIS 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.
FDIS thesis for this collar
The market-implied 1-standard-deviation range for FDIS extends from approximately $-38.04 on the downside to $228.16 on the upside. A FDIS collar hedges an existing long FDIS 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 FDIS IV rank near 100.00% 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 FDIS at 488.40%. As a Financial Services name, FDIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDIS-specific events.
FDIS 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. FDIS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FDIS alongside the broader basket even when FDIS-specific fundamentals are unchanged. Always rebuild the position from current FDIS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FDIS?
- A collar on FDIS is the collar strategy applied to FDIS (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 FDIS etf at $95.06 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed FDIS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FDIS 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 FDIS collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 488.40%), the computed maximum profit is $467.00 per contract and the computed maximum loss is -$333.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDIS collar?
- The breakeven for the FDIS collar priced on this page is roughly $95.33 at expiration, derived from the September 29, 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 FDIS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 140.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FDIS?
- Collars on FDIS hedge an existing long FDIS 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 FDIS implied volatility affect this collar?
- FDIS ATM IV is at 488.40% with IV rank near 100.00%, 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.