IJH Collar Strategy
IJH (iShares Core S&P Mid-Cap ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares Core S&P Mid-Cap ETF is designed to mirror the market performance of a specific index, which is entirely comprised of medium-sized American companies.
IJH (iShares Core S&P Mid-Cap ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $127.00B, a beta of 1.02 versus the broader market, a 52-week range of 62.22-78.3, average daily share volume of 7.6M, a public-listing history dating back to 2000. These structural characteristics shape how IJH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places IJH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IJH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on IJH?
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.
IJH snapshot
As of August 14, 2026, spot at $78.62, ATM IV 14.50%, IV rank 29.69%, expected move 4.16%. The collar on IJH below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on IJH specifically: IV regime affects collar pricing on both sides; compressed IJH IV at 14.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.16% (roughly $3.27 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IJH expiries trade a higher absolute premium for lower per-day decay. Position sizing on IJH should anchor to the underlying notional of $78.62 per share and to the trader's directional view on IJH etf.
IJH collar setup
The IJH collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With IJH at $78.62 on that close, the first option leg uses a $83.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IJH chain at a 35-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 IJH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $78.62 | long |
| Sell 1 | Call | $83.00 | $0.22 |
| Buy 1 | Put | $75.00 | $0.38 |
IJH collar risk and reward
- Net Premium / Debit
- -$7,877.50
- Max Profit (per contract)
- $422.50
- Max Loss (per contract)
- -$377.50
- Breakeven(s)
- $78.78
- Risk / Reward Ratio
- 1.119
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.
IJH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IJH. 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% | -$377.50 |
| $17.39 | -77.9% | -$377.50 |
| $34.77 | -55.8% | -$377.50 |
| $52.16 | -33.7% | -$377.50 |
| $69.54 | -11.6% | -$377.50 |
| $86.92 | +10.6% | +$422.50 |
| $104.30 | +32.7% | +$422.50 |
| $121.69 | +54.8% | +$422.50 |
| $139.07 | +76.9% | +$422.50 |
| $156.45 | +99.0% | +$422.50 |
When traders use collar on IJH
Collars on IJH hedge an existing long IJH 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.
IJH thesis for this collar
The market-implied 1-standard-deviation range for IJH extends from approximately $75.35 on the downside to $81.89 on the upside. A IJH collar hedges an existing long IJH 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 IJH IV rank near 29.69% 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 IJH at 14.50%. As a Financial Services name, IJH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IJH-specific events.
IJH 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. IJH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IJH alongside the broader basket even when IJH-specific fundamentals are unchanged. Always rebuild the position from current IJH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IJH?
- A collar on IJH is the collar strategy applied to IJH (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 IJH etf at $78.62 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IJH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IJH 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 IJH collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 14.50%), the computed maximum profit is $422.50 per contract and the computed maximum loss is -$377.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IJH collar?
- The breakeven for the IJH collar priced on this page is roughly $78.78 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The IJH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IJH?
- Collars on IJH hedge an existing long IJH 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 IJH implied volatility affect this collar?
- IJH ATM IV is at 14.50% with IV rank near 29.69%, 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.