FFTY Collar Strategy
FFTY (CapForce IBD 50 ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The CapForce IBD 50 ETF is designed to mirror the performance outcomes of the IBD 50 Index. Developed by Investor's Business Daily as its signature investment vehicle, the IBD 50 provides access to U.S. large and mid-sized companies that display robust earnings growth alongside strong stock price appreciation. This fund implements a consistent, systematic methodology to pinpoint stocks that align with its established leadership standards.
FFTY (CapForce IBD 50 ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $95.4M, a beta of 1.74 versus the broader market, a 52-week range of 31.22-44.08, average daily share volume of 49K, a public-listing history dating back to 2015. These structural characteristics shape how FFTY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.74 indicates FFTY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FFTY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FFTY?
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 FFTY snapshot
As of June 26, 2026, spot at $41.67, ATM IV 48.20%, IV rank 65.75%, expected move 13.82%. The collar on FFTY 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 172-day expiry.
Why this collar structure on FFTY specifically: IV regime affects collar pricing on both sides; mid-range FFTY IV at 48.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.82% (roughly $5.76 on the underlying). The 172-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FFTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on FFTY should anchor to the underlying notional of $41.67 per share and to the trader's directional view on FFTY etf.
FFTY collar setup
The FFTY 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 FFTY near $41.67, the first option leg uses a $44.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FFTY chain at a 172-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 FFTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $41.67 | long |
| Sell 1 | Call | $44.00 | $3.68 |
| Buy 1 | Put | $40.00 | $3.63 |
FFTY collar risk and reward
- Net Premium / Debit
- -$4,162.00
- Max Profit (per contract)
- $238.00
- Max Loss (per contract)
- -$162.00
- Breakeven(s)
- $41.62
- Risk / Reward Ratio
- 1.469
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.
FFTY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FFTY. 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% | -$162.00 |
| $9.22 | -77.9% | -$162.00 |
| $18.43 | -55.8% | -$162.00 |
| $27.65 | -33.7% | -$162.00 |
| $36.86 | -11.5% | -$162.00 |
| $46.07 | +10.6% | +$238.00 |
| $55.28 | +32.7% | +$238.00 |
| $64.50 | +54.8% | +$238.00 |
| $73.71 | +76.9% | +$238.00 |
| $82.92 | +99.0% | +$238.00 |
When traders use collar on FFTY
Collars on FFTY hedge an existing long FFTY 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.
FFTY thesis for this collar
The market-implied 1-standard-deviation range for FFTY extends from approximately $35.91 on the downside to $47.43 on the upside. A FFTY collar hedges an existing long FFTY 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 FFTY IV rank near 65.75% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FFTY should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FFTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FFTY-specific events.
FFTY 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. FFTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FFTY alongside the broader basket even when FFTY-specific fundamentals are unchanged. Always rebuild the position from current FFTY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FFTY?
- A collar on FFTY is the collar strategy applied to FFTY (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 FFTY etf trading near $41.67, the strikes shown on this page are snapped to the nearest listed FFTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FFTY 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 FFTY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.20%), the computed maximum profit is $238.00 per contract and the computed maximum loss is -$162.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FFTY collar?
- The breakeven for the FFTY collar priced on this page is roughly $41.62 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 FFTY market-implied 1-standard-deviation expected move is approximately 13.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FFTY?
- Collars on FFTY hedge an existing long FFTY 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 FFTY implied volatility affect this collar?
- FFTY ATM IV is at 48.20% with IV rank near 65.75%, 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.