GII Collar Strategy
GII (State Street SPDR S&P Global Infrastructure ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
This State Street SPDR exchange-traded fund aims to deliver investment returns that closely mirror the overall performance of the S&P Global Infrastructure Index, prior to factoring in any management fees or expenses. The fund primarily invests in the 75 largest infrastructure-related companies, which are selected based on their float-adjusted market capitalization and trading liquidity. The foundational index itself offers broad exposure across vital infrastructure sectors, specifically transportation, public utilities, and energy.
GII (State Street SPDR S&P Global Infrastructure ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $980.0M, a beta of 0.60 versus the broader market, a 52-week range of 65.99-78.95, average daily share volume of 78K, a public-listing history dating back to 2007. These structural characteristics shape how GII etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates GII has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on GII?
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 GII snapshot
As of June 30, 2026, spot at $75.82, ATM IV 18.10%, IV rank 3.08%, expected move 5.19%. The collar on GII 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 GII specifically: IV regime affects collar pricing on both sides; compressed GII IV at 18.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.19% (roughly $3.93 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 GII expiries trade a higher absolute premium for lower per-day decay. Position sizing on GII should anchor to the underlying notional of $75.82 per share and to the trader's directional view on GII etf.
GII collar setup
The GII 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 GII near $75.82, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GII 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 GII shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $75.82 | long |
| Sell 1 | Call | $80.00 | $0.13 |
| Buy 1 | Put | $72.00 | $0.11 |
GII collar risk and reward
- Net Premium / Debit
- -$7,580.00
- Max Profit (per contract)
- $420.00
- Max Loss (per contract)
- -$380.00
- Breakeven(s)
- $75.80
- 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.
GII collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GII. 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% | -$380.00 |
| $16.77 | -77.9% | -$380.00 |
| $33.54 | -55.8% | -$380.00 |
| $50.30 | -33.7% | -$380.00 |
| $67.06 | -11.6% | -$380.00 |
| $83.83 | +10.6% | +$420.00 |
| $100.59 | +32.7% | +$420.00 |
| $117.35 | +54.8% | +$420.00 |
| $134.11 | +76.9% | +$420.00 |
| $150.88 | +99.0% | +$420.00 |
When traders use collar on GII
Collars on GII hedge an existing long GII 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.
GII thesis for this collar
The market-implied 1-standard-deviation range for GII extends from approximately $71.89 on the downside to $79.75 on the upside. A GII collar hedges an existing long GII 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 GII IV rank near 3.08% 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 GII at 18.10%. As a Financial Services name, GII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GII-specific events.
GII 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. GII positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GII alongside the broader basket even when GII-specific fundamentals are unchanged. Always rebuild the position from current GII chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GII?
- A collar on GII is the collar strategy applied to GII (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 GII etf trading near $75.82, the strikes shown on this page are snapped to the nearest listed GII chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GII 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 GII collar priced from the end-of-day chain at a 30-day expiry (ATM IV 18.10%), the computed maximum profit is $420.00 per contract and the computed maximum loss is -$380.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GII collar?
- The breakeven for the GII collar priced on this page is roughly $75.80 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 GII market-implied 1-standard-deviation expected move is approximately 5.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GII?
- Collars on GII hedge an existing long GII 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 GII implied volatility affect this collar?
- GII ATM IV is at 18.10% with IV rank near 3.08%, 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.