ISRA Collar Strategy
ISRA (VanEck Israel ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
VanEck Israel ETF (ISRATM) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the BlueStar Israel Global Index (BLSNTR), which is comprised of equity securities, which may include depositary receipts, of publicly traded companies that are generally considered by the Index Provider to be Israeli companies.
ISRA (VanEck Israel ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $148.0M, a beta of 0.94 versus the broader market, a 52-week range of 45.43-73.55, average daily share volume of 9K, a public-listing history dating back to 2013. These structural characteristics shape how ISRA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places ISRA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ISRA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ISRA?
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 ISRA snapshot
As of May 15, 2026, spot at $67.39, ATM IV 27.20%, IV rank 14.47%, expected move 7.80%. The collar on ISRA 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 ISRA specifically: IV regime affects collar pricing on both sides; compressed ISRA IV at 27.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.80% (roughly $5.26 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 ISRA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ISRA should anchor to the underlying notional of $67.39 per share and to the trader's directional view on ISRA etf.
ISRA collar setup
The ISRA 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 ISRA near $67.39, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ISRA 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 ISRA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $67.39 | long |
| Sell 1 | Call | $70.00 | $1.30 |
| Buy 1 | Put | $64.00 | $1.53 |
ISRA collar risk and reward
- Net Premium / Debit
- -$6,761.50
- Max Profit (per contract)
- $238.50
- Max Loss (per contract)
- -$361.50
- Breakeven(s)
- $67.62
- Risk / Reward Ratio
- 0.660
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.
ISRA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ISRA. 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% | -$361.50 |
| $14.91 | -77.9% | -$361.50 |
| $29.81 | -55.8% | -$361.50 |
| $44.71 | -33.7% | -$361.50 |
| $59.61 | -11.5% | -$361.50 |
| $74.51 | +10.6% | +$238.50 |
| $89.41 | +32.7% | +$238.50 |
| $104.30 | +54.8% | +$238.50 |
| $119.20 | +76.9% | +$238.50 |
| $134.10 | +99.0% | +$238.50 |
When traders use collar on ISRA
Collars on ISRA hedge an existing long ISRA 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.
ISRA thesis for this collar
The market-implied 1-standard-deviation range for ISRA extends from approximately $62.13 on the downside to $72.65 on the upside. A ISRA collar hedges an existing long ISRA 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 ISRA IV rank near 14.47% 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 ISRA at 27.20%. As a Financial Services name, ISRA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ISRA-specific events.
ISRA 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. ISRA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ISRA alongside the broader basket even when ISRA-specific fundamentals are unchanged. Always rebuild the position from current ISRA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ISRA?
- A collar on ISRA is the collar strategy applied to ISRA (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 ISRA etf trading near $67.39, the strikes shown on this page are snapped to the nearest listed ISRA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ISRA 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 ISRA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 27.20%), the computed maximum profit is $238.50 per contract and the computed maximum loss is -$361.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ISRA collar?
- The breakeven for the ISRA collar priced on this page is roughly $67.62 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 ISRA market-implied 1-standard-deviation expected move is approximately 7.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ISRA?
- Collars on ISRA hedge an existing long ISRA 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 ISRA implied volatility affect this collar?
- ISRA ATM IV is at 27.20% with IV rank near 14.47%, 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.