ITOT Collar Strategy
ITOT (iShares Core S&P Total U.S. Stock Market ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares Core S&P Total U.S. Stock Market ETF seeks to track the investment results of a broad-based index composed of U.S. equities.
ITOT (iShares Core S&P Total U.S. Stock Market ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $89.42B, a beta of 1.04 versus the broader market, a 52-week range of 125.59-162.31, average daily share volume of 5.5M, a public-listing history dating back to 2004. These structural characteristics shape how ITOT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.04 places ITOT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ITOT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ITOT?
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 ITOT snapshot
As of May 15, 2026, spot at $161.37, ATM IV 15.30%, IV rank 38.58%, expected move 4.39%. The collar on ITOT 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 ITOT specifically: IV regime affects collar pricing on both sides; mid-range ITOT IV at 15.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.39% (roughly $7.08 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 ITOT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ITOT should anchor to the underlying notional of $161.37 per share and to the trader's directional view on ITOT etf.
ITOT collar setup
The ITOT 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 ITOT near $161.37, the first option leg uses a $167.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ITOT 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 ITOT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $161.37 | long |
| Sell 1 | Call | $167.00 | $0.85 |
| Buy 1 | Put | $153.00 | $0.84 |
ITOT collar risk and reward
- Net Premium / Debit
- -$16,136.00
- Max Profit (per contract)
- $564.00
- Max Loss (per contract)
- -$836.00
- Breakeven(s)
- $161.36
- Risk / Reward Ratio
- 0.675
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.
ITOT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ITOT. 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% | -$836.00 |
| $35.69 | -77.9% | -$836.00 |
| $71.37 | -55.8% | -$836.00 |
| $107.05 | -33.7% | -$836.00 |
| $142.72 | -11.6% | -$836.00 |
| $178.40 | +10.6% | +$564.00 |
| $214.08 | +32.7% | +$564.00 |
| $249.76 | +54.8% | +$564.00 |
| $285.44 | +76.9% | +$564.00 |
| $321.12 | +99.0% | +$564.00 |
When traders use collar on ITOT
Collars on ITOT hedge an existing long ITOT 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.
ITOT thesis for this collar
The market-implied 1-standard-deviation range for ITOT extends from approximately $154.29 on the downside to $168.45 on the upside. A ITOT collar hedges an existing long ITOT 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 ITOT IV rank near 38.58% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ITOT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ITOT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ITOT-specific events.
ITOT 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. ITOT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ITOT alongside the broader basket even when ITOT-specific fundamentals are unchanged. Always rebuild the position from current ITOT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ITOT?
- A collar on ITOT is the collar strategy applied to ITOT (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 ITOT etf trading near $161.37, the strikes shown on this page are snapped to the nearest listed ITOT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ITOT 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 ITOT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 15.30%), the computed maximum profit is $564.00 per contract and the computed maximum loss is -$836.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ITOT collar?
- The breakeven for the ITOT collar priced on this page is roughly $161.36 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 ITOT market-implied 1-standard-deviation expected move is approximately 4.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ITOT?
- Collars on ITOT hedge an existing long ITOT 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 ITOT implied volatility affect this collar?
- ITOT ATM IV is at 15.30% with IV rank near 38.58%, 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.