ILF Collar Strategy
ILF (iShares Latin America 40 ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The iShares Latin America 40 ETF is designed to replicate the financial performance of a benchmark index, which itself is made up of 40 of the most prominent Latin American stocks.
ILF (iShares Latin America 40 ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $2.28B, a beta of 0.93 versus the broader market, a 52-week range of 25.71-38.5, average daily share volume of 2.7M, a public-listing history dating back to 2001. These structural characteristics shape how ILF etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places ILF roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ILF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ILF?
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.
ILF snapshot
As of August 14, 2026, spot at $33.56, ATM IV 23.80%, IV rank 2.60%, expected move 6.82%. The collar on ILF 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 ILF specifically: IV regime affects collar pricing on both sides; compressed ILF IV at 23.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.82% (roughly $2.29 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 ILF expiries trade a higher absolute premium for lower per-day decay. Position sizing on ILF should anchor to the underlying notional of $33.56 per share and to the trader's directional view on ILF etf.
ILF collar setup
The ILF 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 ILF at $33.56 on that close, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ILF 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 ILF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $33.56 | long |
| Sell 1 | Call | $35.00 | $0.55 |
| Buy 1 | Put | $32.00 | $0.41 |
ILF collar risk and reward
- Net Premium / Debit
- -$3,342.00
- Max Profit (per contract)
- $158.00
- Max Loss (per contract)
- -$142.00
- Breakeven(s)
- $33.42
- Risk / Reward Ratio
- 1.113
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.
ILF collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ILF. 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% | -$142.00 |
| $7.43 | -77.9% | -$142.00 |
| $14.85 | -55.8% | -$142.00 |
| $22.27 | -33.6% | -$142.00 |
| $29.69 | -11.5% | -$142.00 |
| $37.11 | +10.6% | +$158.00 |
| $44.53 | +32.7% | +$158.00 |
| $51.94 | +54.8% | +$158.00 |
| $59.36 | +76.9% | +$158.00 |
| $66.78 | +99.0% | +$158.00 |
When traders use collar on ILF
Collars on ILF hedge an existing long ILF 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.
ILF thesis for this collar
The market-implied 1-standard-deviation range for ILF extends from approximately $31.27 on the downside to $35.85 on the upside. A ILF collar hedges an existing long ILF 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 ILF IV rank near 2.60% 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 ILF at 23.80%. As a Financial Services name, ILF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ILF-specific events.
ILF 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. ILF positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ILF alongside the broader basket even when ILF-specific fundamentals are unchanged. Always rebuild the position from current ILF chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ILF?
- A collar on ILF is the collar strategy applied to ILF (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 ILF etf at $33.56 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ILF chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ILF 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 ILF collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.80%), the computed maximum profit is $158.00 per contract and the computed maximum loss is -$142.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ILF collar?
- The breakeven for the ILF collar priced on this page is roughly $33.42 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 ILF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ILF?
- Collars on ILF hedge an existing long ILF 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 ILF implied volatility affect this collar?
- ILF ATM IV is at 23.80% with IV rank near 2.60%, 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.