FTXR Collar Strategy
FTXR (First Trust Nasdaq Transportation ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The First Trust Nasdaq Transportation ETF is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an index called the Nasdaq US Smart Transportation Index. The Fund seeks to replicate the holdings and weightings of the Nasdaq US Smart Transportation Index so as to generate performance results 95% correlated to that of the Nasdaq US Smart Transportation Index.
FTXR (First Trust Nasdaq Transportation ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $39.4M, a beta of 1.37 versus the broader market, a 52-week range of 30.479-44.85, average daily share volume of 713K, a public-listing history dating back to 2016. These structural characteristics shape how FTXR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.37 indicates FTXR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FTXR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FTXR?
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 FTXR snapshot
As of May 14, 2026, spot at $42.16, ATM IV 26.40%, IV rank 3.46%, expected move 7.57%. The collar on FTXR 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 34-day expiry.
Why this collar structure on FTXR specifically: IV regime affects collar pricing on both sides; compressed FTXR IV at 26.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.57% (roughly $3.19 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTXR expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTXR should anchor to the underlying notional of $42.16 per share and to the trader's directional view on FTXR etf.
FTXR collar setup
The FTXR 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 FTXR near $42.16, 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 FTXR chain at a 34-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 FTXR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $42.16 | long |
| Sell 1 | Call | $44.00 | $0.48 |
| Buy 1 | Put | $40.00 | $0.77 |
FTXR collar risk and reward
- Net Premium / Debit
- -$4,245.00
- Max Profit (per contract)
- $155.00
- Max Loss (per contract)
- -$245.00
- Breakeven(s)
- $42.45
- Risk / Reward Ratio
- 0.633
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.
FTXR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FTXR. 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% | -$245.00 |
| $9.33 | -77.9% | -$245.00 |
| $18.65 | -55.8% | -$245.00 |
| $27.97 | -33.7% | -$245.00 |
| $37.29 | -11.5% | -$245.00 |
| $46.61 | +10.6% | +$155.00 |
| $55.93 | +32.7% | +$155.00 |
| $65.25 | +54.8% | +$155.00 |
| $74.58 | +76.9% | +$155.00 |
| $83.90 | +99.0% | +$155.00 |
When traders use collar on FTXR
Collars on FTXR hedge an existing long FTXR 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.
FTXR thesis for this collar
The market-implied 1-standard-deviation range for FTXR extends from approximately $38.97 on the downside to $45.35 on the upside. A FTXR collar hedges an existing long FTXR 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 FTXR IV rank near 3.46% 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 FTXR at 26.40%. As a Financial Services name, FTXR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTXR-specific events.
FTXR 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. FTXR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTXR alongside the broader basket even when FTXR-specific fundamentals are unchanged. Always rebuild the position from current FTXR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FTXR?
- A collar on FTXR is the collar strategy applied to FTXR (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 FTXR etf trading near $42.16, the strikes shown on this page are snapped to the nearest listed FTXR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FTXR 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 FTXR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 26.40%), the computed maximum profit is $155.00 per contract and the computed maximum loss is -$245.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FTXR collar?
- The breakeven for the FTXR collar priced on this page is roughly $42.45 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 FTXR market-implied 1-standard-deviation expected move is approximately 7.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FTXR?
- Collars on FTXR hedge an existing long FTXR 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 FTXR implied volatility affect this collar?
- FTXR ATM IV is at 26.40% with IV rank near 3.46%, 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.