GGME Collar Strategy
GGME (Invesco Next Gen Media and Gaming ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco Next Gen Media and Gaming ETF (Fund) is based on the STOXX World AC NexGen Media Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is of securities of companies with significant exposure to technologies or products that contribute to future media through direct revenue. The Fund and the Index are rebalanced after the close of trading on the second Friday of March, June, September and December.
GGME (Invesco Next Gen Media and Gaming ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $160.6M, a beta of 1.22 versus the broader market, a 52-week range of 49.02-66.18, average daily share volume of 4K, a public-listing history dating back to 2005. These structural characteristics shape how GGME etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places GGME roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GGME pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on GGME?
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 GGME snapshot
As of May 15, 2026, spot at $59.58, ATM IV 24.50%, IV rank 37.47%, expected move 7.02%. The collar on GGME 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 GGME specifically: IV regime affects collar pricing on both sides; mid-range GGME IV at 24.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.02% (roughly $4.18 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 GGME expiries trade a higher absolute premium for lower per-day decay. Position sizing on GGME should anchor to the underlying notional of $59.58 per share and to the trader's directional view on GGME etf.
GGME collar setup
The GGME 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 GGME near $59.58, the first option leg uses a $63.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GGME 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 GGME shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $59.58 | long |
| Sell 1 | Call | $63.00 | $0.57 |
| Buy 1 | Put | $57.00 | $0.84 |
GGME collar risk and reward
- Net Premium / Debit
- -$5,985.00
- Max Profit (per contract)
- $315.00
- Max Loss (per contract)
- -$285.00
- Breakeven(s)
- $59.85
- Risk / Reward Ratio
- 1.105
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.
GGME collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GGME. 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% | -$285.00 |
| $13.18 | -77.9% | -$285.00 |
| $26.35 | -55.8% | -$285.00 |
| $39.53 | -33.7% | -$285.00 |
| $52.70 | -11.5% | -$285.00 |
| $65.87 | +10.6% | +$315.00 |
| $79.04 | +32.7% | +$315.00 |
| $92.22 | +54.8% | +$315.00 |
| $105.39 | +76.9% | +$315.00 |
| $118.56 | +99.0% | +$315.00 |
When traders use collar on GGME
Collars on GGME hedge an existing long GGME 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.
GGME thesis for this collar
The market-implied 1-standard-deviation range for GGME extends from approximately $55.40 on the downside to $63.76 on the upside. A GGME collar hedges an existing long GGME 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 GGME IV rank near 37.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on GGME should anchor more to the directional view and the expected-move geometry. As a Financial Services name, GGME options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GGME-specific events.
GGME 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. GGME positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GGME alongside the broader basket even when GGME-specific fundamentals are unchanged. Always rebuild the position from current GGME chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GGME?
- A collar on GGME is the collar strategy applied to GGME (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 GGME etf trading near $59.58, the strikes shown on this page are snapped to the nearest listed GGME chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GGME 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 GGME collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.50%), the computed maximum profit is $315.00 per contract and the computed maximum loss is -$285.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GGME collar?
- The breakeven for the GGME collar priced on this page is roughly $59.85 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 GGME market-implied 1-standard-deviation expected move is approximately 7.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GGME?
- Collars on GGME hedge an existing long GGME 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 GGME implied volatility affect this collar?
- GGME ATM IV is at 24.50% with IV rank near 37.47%, 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.