ICOP Collar Strategy
ICOP (iShares Copper and Metals Mining ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The iShares Copper and Metals Mining ETF seeks to track the investment results of an index composed of U.S. and non-U.S. equities of companies primarily engaged in copper and metal ore mining.
ICOP (iShares Copper and Metals Mining ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $114.3M, a beta of 0.83 versus the broader market, a 52-week range of 26.94-60.08, average daily share volume of 184K, a public-listing history dating back to 2023. These structural characteristics shape how ICOP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places ICOP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ICOP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ICOP?
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 ICOP snapshot
As of May 15, 2026, spot at $51.97, ATM IV 42.40%, IV rank 24.27%, expected move 12.16%. The collar on ICOP 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 ICOP specifically: IV regime affects collar pricing on both sides; compressed ICOP IV at 42.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.16% (roughly $6.32 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 ICOP expiries trade a higher absolute premium for lower per-day decay. Position sizing on ICOP should anchor to the underlying notional of $51.97 per share and to the trader's directional view on ICOP etf.
ICOP collar setup
The ICOP 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 ICOP near $51.97, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ICOP 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 ICOP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $51.97 | long |
| Sell 1 | Call | $55.00 | $3.30 |
| Buy 1 | Put | $49.00 | $3.33 |
ICOP collar risk and reward
- Net Premium / Debit
- -$5,199.50
- Max Profit (per contract)
- $300.50
- Max Loss (per contract)
- -$299.50
- Breakeven(s)
- $52.00
- Risk / Reward Ratio
- 1.003
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.
ICOP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ICOP. 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% | -$299.50 |
| $11.50 | -77.9% | -$299.50 |
| $22.99 | -55.8% | -$299.50 |
| $34.48 | -33.7% | -$299.50 |
| $45.97 | -11.5% | -$299.50 |
| $57.46 | +10.6% | +$300.50 |
| $68.95 | +32.7% | +$300.50 |
| $80.44 | +54.8% | +$300.50 |
| $91.93 | +76.9% | +$300.50 |
| $103.42 | +99.0% | +$300.50 |
When traders use collar on ICOP
Collars on ICOP hedge an existing long ICOP 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.
ICOP thesis for this collar
The market-implied 1-standard-deviation range for ICOP extends from approximately $45.65 on the downside to $58.29 on the upside. A ICOP collar hedges an existing long ICOP 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 ICOP IV rank near 24.27% 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 ICOP at 42.40%. As a Financial Services name, ICOP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ICOP-specific events.
ICOP 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. ICOP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ICOP alongside the broader basket even when ICOP-specific fundamentals are unchanged. Always rebuild the position from current ICOP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ICOP?
- A collar on ICOP is the collar strategy applied to ICOP (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 ICOP etf trading near $51.97, the strikes shown on this page are snapped to the nearest listed ICOP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ICOP 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 ICOP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 42.40%), the computed maximum profit is $300.50 per contract and the computed maximum loss is -$299.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ICOP collar?
- The breakeven for the ICOP collar priced on this page is roughly $52.00 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 ICOP market-implied 1-standard-deviation expected move is approximately 12.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ICOP?
- Collars on ICOP hedge an existing long ICOP 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 ICOP implied volatility affect this collar?
- ICOP ATM IV is at 42.40% with IV rank near 24.27%, 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.