FIDU Collar Strategy
FIDU (Fidelity MSCI Industrials Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Tracks the performance of the MSCI USA IMI Industrials 25/50 Index.
FIDU (Fidelity MSCI Industrials Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.07B, a beta of 1.22 versus the broader market, a 52-week range of 73.01-96.19, average daily share volume of 116K, a public-listing history dating back to 2013. These structural characteristics shape how FIDU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places FIDU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FIDU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FIDU?
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 FIDU snapshot
As of May 15, 2026, spot at $92.69, ATM IV 23.30%, IV rank 2.55%, expected move 6.68%. The collar on FIDU 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 98-day expiry.
Why this collar structure on FIDU specifically: IV regime affects collar pricing on both sides; compressed FIDU IV at 23.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.68% (roughly $6.19 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FIDU expiries trade a higher absolute premium for lower per-day decay. Position sizing on FIDU should anchor to the underlying notional of $92.69 per share and to the trader's directional view on FIDU etf.
FIDU collar setup
The FIDU 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 FIDU near $92.69, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FIDU chain at a 98-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 FIDU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $92.69 | long |
| Sell 1 | Call | $95.00 | $3.75 |
| Buy 1 | Put | $88.00 | $2.23 |
FIDU collar risk and reward
- Net Premium / Debit
- -$9,117.00
- Max Profit (per contract)
- $383.00
- Max Loss (per contract)
- -$317.00
- Breakeven(s)
- $91.17
- Risk / Reward Ratio
- 1.208
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.
FIDU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FIDU. 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% | -$317.00 |
| $20.50 | -77.9% | -$317.00 |
| $41.00 | -55.8% | -$317.00 |
| $61.49 | -33.7% | -$317.00 |
| $81.98 | -11.6% | -$317.00 |
| $102.48 | +10.6% | +$383.00 |
| $122.97 | +32.7% | +$383.00 |
| $143.46 | +54.8% | +$383.00 |
| $163.96 | +76.9% | +$383.00 |
| $184.45 | +99.0% | +$383.00 |
When traders use collar on FIDU
Collars on FIDU hedge an existing long FIDU 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.
FIDU thesis for this collar
The market-implied 1-standard-deviation range for FIDU extends from approximately $86.50 on the downside to $98.88 on the upside. A FIDU collar hedges an existing long FIDU 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 FIDU IV rank near 2.55% 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 FIDU at 23.30%. As a Financial Services name, FIDU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FIDU-specific events.
FIDU 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. FIDU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FIDU alongside the broader basket even when FIDU-specific fundamentals are unchanged. Always rebuild the position from current FIDU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FIDU?
- A collar on FIDU is the collar strategy applied to FIDU (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 FIDU etf trading near $92.69, the strikes shown on this page are snapped to the nearest listed FIDU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FIDU 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 FIDU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.30%), the computed maximum profit is $383.00 per contract and the computed maximum loss is -$317.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FIDU collar?
- The breakeven for the FIDU collar priced on this page is roughly $91.17 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 FIDU market-implied 1-standard-deviation expected move is approximately 6.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FIDU?
- Collars on FIDU hedge an existing long FIDU 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 FIDU implied volatility affect this collar?
- FIDU ATM IV is at 23.30% with IV rank near 2.55%, 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.