IEZ Collar Strategy
IEZ (iShares U.S. Oil Equipment & Services ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares U.S. Oil Equipment & Services ETF seeks to track the investment results of an index composed of U.S. equities in the oil equipment and services sector.
IEZ (iShares U.S. Oil Equipment & Services ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $157.6M, a beta of 0.97 versus the broader market, a 52-week range of 15.88-32.33, average daily share volume of 625K, a public-listing history dating back to 2006. These structural characteristics shape how IEZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places IEZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IEZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on IEZ?
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 IEZ snapshot
As of May 15, 2026, spot at $31.45, ATM IV 34.20%, IV rank 17.38%, expected move 9.80%. The collar on IEZ 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 IEZ specifically: IV regime affects collar pricing on both sides; compressed IEZ IV at 34.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.80% (roughly $3.08 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 IEZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on IEZ should anchor to the underlying notional of $31.45 per share and to the trader's directional view on IEZ etf.
IEZ collar setup
The IEZ 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 IEZ near $31.45, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IEZ 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 IEZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $31.45 | long |
| Sell 1 | Call | $33.00 | $0.60 |
| Buy 1 | Put | $30.00 | $0.98 |
IEZ collar risk and reward
- Net Premium / Debit
- -$3,182.50
- Max Profit (per contract)
- $117.50
- Max Loss (per contract)
- -$182.50
- Breakeven(s)
- $31.83
- Risk / Reward Ratio
- 0.644
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.
IEZ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IEZ. 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% | -$182.50 |
| $6.96 | -77.9% | -$182.50 |
| $13.92 | -55.8% | -$182.50 |
| $20.87 | -33.6% | -$182.50 |
| $27.82 | -11.5% | -$182.50 |
| $34.77 | +10.6% | +$117.50 |
| $41.73 | +32.7% | +$117.50 |
| $48.68 | +54.8% | +$117.50 |
| $55.63 | +76.9% | +$117.50 |
| $62.58 | +99.0% | +$117.50 |
When traders use collar on IEZ
Collars on IEZ hedge an existing long IEZ 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.
IEZ thesis for this collar
The market-implied 1-standard-deviation range for IEZ extends from approximately $28.37 on the downside to $34.53 on the upside. A IEZ collar hedges an existing long IEZ 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 IEZ IV rank near 17.38% 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 IEZ at 34.20%. As a Financial Services name, IEZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IEZ-specific events.
IEZ 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. IEZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IEZ alongside the broader basket even when IEZ-specific fundamentals are unchanged. Always rebuild the position from current IEZ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IEZ?
- A collar on IEZ is the collar strategy applied to IEZ (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 IEZ etf trading near $31.45, the strikes shown on this page are snapped to the nearest listed IEZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IEZ 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 IEZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 34.20%), the computed maximum profit is $117.50 per contract and the computed maximum loss is -$182.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IEZ collar?
- The breakeven for the IEZ collar priced on this page is roughly $31.83 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 IEZ market-implied 1-standard-deviation expected move is approximately 9.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IEZ?
- Collars on IEZ hedge an existing long IEZ 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 IEZ implied volatility affect this collar?
- IEZ ATM IV is at 34.20% with IV rank near 17.38%, 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.