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 seeks to track the investment results of an index composed of mid-capitalization U.S. equities.
IJH (iShares Core S&P Mid-Cap ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $116.32B, a beta of 1.08 versus the broader market, a 52-week range of 58.84-75.15, average daily share volume of 13.9M, 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 1.08 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.
Current IJH snapshot
As of May 15, 2026, spot at $72.31, ATM IV 19.80%, IV rank 44.42%, expected move 5.68%. The collar on IJH 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 IJH specifically: IV regime affects collar pricing on both sides; mid-range IJH IV at 19.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.68% (roughly $4.10 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 IJH expiries trade a higher absolute premium for lower per-day decay. Position sizing on IJH should anchor to the underlying notional of $72.31 per share and to the trader's directional view on IJH etf.
IJH collar setup
The IJH 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 IJH near $72.31, the first option leg uses a $76.00 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 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 IJH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $72.31 | long |
| Sell 1 | Call | $76.00 | $0.48 |
| Buy 1 | Put | $69.00 | $0.63 |
IJH collar risk and reward
- Net Premium / Debit
- -$7,246.00
- Max Profit (per contract)
- $354.00
- Max Loss (per contract)
- -$346.00
- Breakeven(s)
- $72.46
- Risk / Reward Ratio
- 1.023
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% | -$346.00 |
| $16.00 | -77.9% | -$346.00 |
| $31.98 | -55.8% | -$346.00 |
| $47.97 | -33.7% | -$346.00 |
| $63.96 | -11.6% | -$346.00 |
| $79.95 | +10.6% | +$354.00 |
| $95.93 | +32.7% | +$354.00 |
| $111.92 | +54.8% | +$354.00 |
| $127.91 | +76.9% | +$354.00 |
| $143.89 | +99.0% | +$354.00 |
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 $68.21 on the downside to $76.41 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 44.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on IJH should anchor more to the directional view and the expected-move geometry. 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 trading near $72.31, the strikes shown on this page are snapped to the nearest listed IJH chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 19.80%), the computed maximum profit is $354.00 per contract and the computed maximum loss is -$346.00 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 $72.46 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 IJH market-implied 1-standard-deviation expected move is approximately 5.68%; 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 19.80% with IV rank near 44.42%, 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.