IDGT Collar Strategy
IDGT (iShares U.S. Digital Infrastructure and Real Estate ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares U.S. Digital Infrastructure and Real Estate ETF (the “Fund”) seeks to track the investment results of an index composed of US-listed companies engaged in the owning, operating, developing, or providing of infrastructure for the storage, processing, transmission and/or access of digital data and services.
IDGT (iShares U.S. Digital Infrastructure and Real Estate ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $164.2M, a beta of 1.10 versus the broader market, a 52-week range of 78.1-123.89, average daily share volume of 45K, a public-listing history dating back to 2001. These structural characteristics shape how IDGT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places IDGT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IDGT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on IDGT?
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 IDGT snapshot
As of May 15, 2026, spot at $117.30, ATM IV 25.10%, IV rank 65.48%, expected move 7.20%. The collar on IDGT 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 IDGT specifically: IV regime affects collar pricing on both sides; mid-range IDGT IV at 25.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.20% (roughly $8.44 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 IDGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on IDGT should anchor to the underlying notional of $117.30 per share and to the trader's directional view on IDGT etf.
IDGT collar setup
The IDGT 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 IDGT near $117.30, the first option leg uses a $123.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IDGT 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 IDGT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $117.30 | long |
| Sell 1 | Call | $123.00 | $1.29 |
| Buy 1 | Put | $111.00 | $1.34 |
IDGT collar risk and reward
- Net Premium / Debit
- -$11,735.00
- Max Profit (per contract)
- $565.00
- Max Loss (per contract)
- -$635.00
- Breakeven(s)
- $117.35
- Risk / Reward Ratio
- 0.890
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.
IDGT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IDGT. 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% | -$635.00 |
| $25.94 | -77.9% | -$635.00 |
| $51.88 | -55.8% | -$635.00 |
| $77.81 | -33.7% | -$635.00 |
| $103.75 | -11.6% | -$635.00 |
| $129.68 | +10.6% | +$565.00 |
| $155.62 | +32.7% | +$565.00 |
| $181.55 | +54.8% | +$565.00 |
| $207.49 | +76.9% | +$565.00 |
| $233.42 | +99.0% | +$565.00 |
When traders use collar on IDGT
Collars on IDGT hedge an existing long IDGT 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.
IDGT thesis for this collar
The market-implied 1-standard-deviation range for IDGT extends from approximately $108.86 on the downside to $125.74 on the upside. A IDGT collar hedges an existing long IDGT 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 IDGT IV rank near 65.48% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on IDGT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, IDGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IDGT-specific events.
IDGT 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. IDGT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IDGT alongside the broader basket even when IDGT-specific fundamentals are unchanged. Always rebuild the position from current IDGT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IDGT?
- A collar on IDGT is the collar strategy applied to IDGT (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 IDGT etf trading near $117.30, the strikes shown on this page are snapped to the nearest listed IDGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IDGT 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 IDGT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.10%), the computed maximum profit is $565.00 per contract and the computed maximum loss is -$635.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IDGT collar?
- The breakeven for the IDGT collar priced on this page is roughly $117.35 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 IDGT market-implied 1-standard-deviation expected move is approximately 7.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IDGT?
- Collars on IDGT hedge an existing long IDGT 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 IDGT implied volatility affect this collar?
- IDGT ATM IV is at 25.10% with IV rank near 65.48%, 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.