IJS Collar Strategy
IJS (iShares S&P Small-Cap 600 Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares S&P Small-Cap 600 Value ETF (IJS) is structured to replicate the investment returns of a specific underlying index. This index is composed of American companies with smaller market capitalizations that are distinguished by their inherent value characteristics.
IJS (iShares S&P Small-Cap 600 Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.02B, a beta of 1.12 versus the broader market, a 52-week range of 97.9-137.07, average daily share volume of 527K, a public-listing history dating back to 2000. These structural characteristics shape how IJS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places IJS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IJS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on IJS?
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 IJS snapshot
As of June 30, 2026, spot at $136.87, ATM IV 23.10%, IV rank 2.27%, expected move 6.62%. The collar on IJS 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 17-day expiry.
Why this collar structure on IJS specifically: IV regime affects collar pricing on both sides; compressed IJS IV at 23.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.62% (roughly $9.06 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IJS expiries trade a higher absolute premium for lower per-day decay. Position sizing on IJS should anchor to the underlying notional of $136.87 per share and to the trader's directional view on IJS etf.
IJS collar setup
The IJS 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 IJS near $136.87, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IJS chain at a 17-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 IJS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $136.87 | long |
| Sell 1 | Call | $145.00 | $0.42 |
| Buy 1 | Put | $130.00 | $0.66 |
IJS collar risk and reward
- Net Premium / Debit
- -$13,711.00
- Max Profit (per contract)
- $789.00
- Max Loss (per contract)
- -$711.00
- Breakeven(s)
- $137.11
- Risk / Reward Ratio
- 1.110
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.
IJS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IJS. 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% | -$711.00 |
| $30.27 | -77.9% | -$711.00 |
| $60.53 | -55.8% | -$711.00 |
| $90.79 | -33.7% | -$711.00 |
| $121.06 | -11.6% | -$711.00 |
| $151.32 | +10.6% | +$789.00 |
| $181.58 | +32.7% | +$789.00 |
| $211.84 | +54.8% | +$789.00 |
| $242.10 | +76.9% | +$789.00 |
| $272.36 | +99.0% | +$789.00 |
When traders use collar on IJS
Collars on IJS hedge an existing long IJS 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.
IJS thesis for this collar
The market-implied 1-standard-deviation range for IJS extends from approximately $127.81 on the downside to $145.93 on the upside. A IJS collar hedges an existing long IJS 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 IJS IV rank near 2.27% 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 IJS at 23.10%. As a Financial Services name, IJS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IJS-specific events.
IJS 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. IJS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IJS alongside the broader basket even when IJS-specific fundamentals are unchanged. Always rebuild the position from current IJS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IJS?
- A collar on IJS is the collar strategy applied to IJS (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 IJS etf trading near $136.87, the strikes shown on this page are snapped to the nearest listed IJS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IJS 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 IJS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.10%), the computed maximum profit is $789.00 per contract and the computed maximum loss is -$711.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IJS collar?
- The breakeven for the IJS collar priced on this page is roughly $137.11 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 IJS market-implied 1-standard-deviation expected move is approximately 6.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IJS?
- Collars on IJS hedge an existing long IJS 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 IJS implied volatility affect this collar?
- IJS ATM IV is at 23.10% with IV rank near 2.27%, 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.