FTXH Collar Strategy
FTXH (First Trust Nasdaq Pharmaceuticals ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
The First Trust Nasdaq Pharmaceuticals ETF (FTXH) operates as an exchange-traded fund. Its primary aim is to mirror the financial performance—both capital appreciation and income generation—of the Nasdaq US Smart Pharmaceuticals Index, prior to any fund-specific fees and expenses. To achieve this, the ETF endeavors to precisely replicate the constituents and their proportionate allocations within that index, striving for a performance correlation of at least 95%.
FTXH (First Trust Nasdaq Pharmaceuticals ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $36.3M, a beta of 0.49 versus the broader market, a 52-week range of 25.58-38.26, average daily share volume of 8K, a public-listing history dating back to 2016. These structural characteristics shape how FTXH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.49 indicates FTXH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FTXH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FTXH?
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 FTXH snapshot
As of June 30, 2026, spot at $38.20, ATM IV 35.20%, IV rank 17.36%, expected move 10.09%. The collar on FTXH 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 17-day expiry.
Why this collar structure on FTXH specifically: IV regime affects collar pricing on both sides; compressed FTXH IV at 35.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.09% (roughly $3.85 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 FTXH expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTXH should anchor to the underlying notional of $38.20 per share and to the trader's directional view on FTXH etf.
FTXH collar setup
The FTXH 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 FTXH near $38.20, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTXH 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 FTXH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $38.20 | long |
| Sell 1 | Call | $40.00 | $0.51 |
| Buy 1 | Put | $36.00 | $0.34 |
FTXH collar risk and reward
- Net Premium / Debit
- -$3,803.00
- Max Profit (per contract)
- $197.00
- Max Loss (per contract)
- -$203.00
- Breakeven(s)
- $38.03
- Risk / Reward Ratio
- 0.970
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.
FTXH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FTXH. 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% | -$203.00 |
| $8.46 | -77.9% | -$203.00 |
| $16.90 | -55.8% | -$203.00 |
| $25.35 | -33.7% | -$203.00 |
| $33.79 | -11.5% | -$203.00 |
| $42.24 | +10.6% | +$197.00 |
| $50.68 | +32.7% | +$197.00 |
| $59.13 | +54.8% | +$197.00 |
| $67.57 | +76.9% | +$197.00 |
| $76.02 | +99.0% | +$197.00 |
When traders use collar on FTXH
Collars on FTXH hedge an existing long FTXH 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.
FTXH thesis for this collar
The market-implied 1-standard-deviation range for FTXH extends from approximately $34.35 on the downside to $42.05 on the upside. A FTXH collar hedges an existing long FTXH 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 FTXH IV rank near 17.36% 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 FTXH at 35.20%. As a Financial Services name, FTXH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTXH-specific events.
FTXH 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. FTXH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTXH alongside the broader basket even when FTXH-specific fundamentals are unchanged. Always rebuild the position from current FTXH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FTXH?
- A collar on FTXH is the collar strategy applied to FTXH (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 FTXH etf trading near $38.20, the strikes shown on this page are snapped to the nearest listed FTXH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FTXH 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 FTXH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.20%), the computed maximum profit is $197.00 per contract and the computed maximum loss is -$203.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FTXH collar?
- The breakeven for the FTXH collar priced on this page is roughly $38.03 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 FTXH market-implied 1-standard-deviation expected move is approximately 10.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FTXH?
- Collars on FTXH hedge an existing long FTXH 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 FTXH implied volatility affect this collar?
- FTXH ATM IV is at 35.20% with IV rank near 17.36%, 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.