IVES Collar Strategy
IVES (Dan Ives Wedbush AI Revolution ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Dan IVES Wedbush AI Revolution ETF (the “Fund”) seeks to track the total return performance, before fees and expenses, of the Solactive Wedbush Artificial Intelligence Index (the “Index”).
IVES (Dan Ives Wedbush AI Revolution ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $994.3M, a beta of 1.72 versus the broader market, a 52-week range of 25.066-36.84, average daily share volume of 553K, a public-listing history dating back to 2025. These structural characteristics shape how IVES etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.72 indicates IVES has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. IVES pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on IVES?
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 IVES snapshot
As of May 15, 2026, spot at $36.49, ATM IV 34.80%, IV rank 34.83%, expected move 9.98%. The collar on IVES 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 IVES specifically: IV regime affects collar pricing on both sides; mid-range IVES IV at 34.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.98% (roughly $3.64 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 IVES expiries trade a higher absolute premium for lower per-day decay. Position sizing on IVES should anchor to the underlying notional of $36.49 per share and to the trader's directional view on IVES etf.
IVES collar setup
The IVES 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 IVES near $36.49, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IVES 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 IVES shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $36.49 | long |
| Sell 1 | Call | $38.00 | $1.08 |
| Buy 1 | Put | $35.00 | $1.03 |
IVES collar risk and reward
- Net Premium / Debit
- -$3,644.50
- Max Profit (per contract)
- $155.50
- Max Loss (per contract)
- -$144.50
- Breakeven(s)
- $36.45
- Risk / Reward Ratio
- 1.076
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.
IVES collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IVES. 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% | -$144.50 |
| $8.08 | -77.9% | -$144.50 |
| $16.14 | -55.8% | -$144.50 |
| $24.21 | -33.7% | -$144.50 |
| $32.28 | -11.5% | -$144.50 |
| $40.35 | +10.6% | +$155.50 |
| $48.41 | +32.7% | +$155.50 |
| $56.48 | +54.8% | +$155.50 |
| $64.55 | +76.9% | +$155.50 |
| $72.61 | +99.0% | +$155.50 |
When traders use collar on IVES
Collars on IVES hedge an existing long IVES 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.
IVES thesis for this collar
The market-implied 1-standard-deviation range for IVES extends from approximately $32.85 on the downside to $40.13 on the upside. A IVES collar hedges an existing long IVES 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 IVES IV rank near 34.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on IVES should anchor more to the directional view and the expected-move geometry. As a Financial Services name, IVES options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IVES-specific events.
IVES 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. IVES positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IVES alongside the broader basket even when IVES-specific fundamentals are unchanged. Always rebuild the position from current IVES chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IVES?
- A collar on IVES is the collar strategy applied to IVES (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 IVES etf trading near $36.49, the strikes shown on this page are snapped to the nearest listed IVES chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IVES 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 IVES collar priced from the end-of-day chain at a 30-day expiry (ATM IV 34.80%), the computed maximum profit is $155.50 per contract and the computed maximum loss is -$144.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IVES collar?
- The breakeven for the IVES collar priced on this page is roughly $36.45 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 IVES market-implied 1-standard-deviation expected move is approximately 9.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IVES?
- Collars on IVES hedge an existing long IVES 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 IVES implied volatility affect this collar?
- IVES ATM IV is at 34.80% with IV rank near 34.83%, 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.