IVOL Collar Strategy
IVOL (Quadratic Interest Rate Volatility and Inflation Hedge ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is actively managed and seeks to achieve its investment objective primarily by investing, directly or indirectly, in a mix of U.S. Treasury Inflation-Protected Securities ("TIPS") and long options tied to the shape of the U.S. interest rate curve. It is non-diversified.
IVOL (Quadratic Interest Rate Volatility and Inflation Hedge ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $469.2M, a beta of 0.63 versus the broader market, a 52-week range of 18.03-20.255, average daily share volume of 300K, a public-listing history dating back to 2019. These structural characteristics shape how IVOL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.63 indicates IVOL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. IVOL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on IVOL?
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 IVOL snapshot
As of May 15, 2026, spot at $17.97, ATM IV 498.80%, IV rank 100.00%, expected move 143.00%. The collar on IVOL 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 IVOL specifically: IV regime affects collar pricing on both sides; elevated IVOL IV at 498.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 143.00% (roughly $25.70 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 IVOL expiries trade a higher absolute premium for lower per-day decay. Position sizing on IVOL should anchor to the underlying notional of $17.97 per share and to the trader's directional view on IVOL etf.
IVOL collar setup
The IVOL 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 IVOL near $17.97, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IVOL 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 IVOL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.97 | long |
| Sell 1 | Call | $19.00 | $0.36 |
| Buy 1 | Put | $17.00 | $0.57 |
IVOL collar risk and reward
- Net Premium / Debit
- -$1,818.00
- Max Profit (per contract)
- $82.00
- Max Loss (per contract)
- -$118.00
- Breakeven(s)
- $18.18
- Risk / Reward Ratio
- 0.695
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.
IVOL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IVOL. 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 | -99.9% | -$118.00 |
| $3.98 | -77.8% | -$118.00 |
| $7.95 | -55.7% | -$118.00 |
| $11.93 | -33.6% | -$118.00 |
| $15.90 | -11.5% | -$118.00 |
| $19.87 | +10.6% | +$82.00 |
| $23.84 | +32.7% | +$82.00 |
| $27.82 | +54.8% | +$82.00 |
| $31.79 | +76.9% | +$82.00 |
| $35.76 | +99.0% | +$82.00 |
When traders use collar on IVOL
Collars on IVOL hedge an existing long IVOL 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.
IVOL thesis for this collar
The market-implied 1-standard-deviation range for IVOL extends from approximately $-7.73 on the downside to $43.67 on the upside. A IVOL collar hedges an existing long IVOL 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 IVOL IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on IVOL at 498.80%. As a Financial Services name, IVOL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IVOL-specific events.
IVOL 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. IVOL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IVOL alongside the broader basket even when IVOL-specific fundamentals are unchanged. Always rebuild the position from current IVOL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IVOL?
- A collar on IVOL is the collar strategy applied to IVOL (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 IVOL etf trading near $17.97, the strikes shown on this page are snapped to the nearest listed IVOL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IVOL 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 IVOL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 498.80%), the computed maximum profit is $82.00 per contract and the computed maximum loss is -$118.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IVOL collar?
- The breakeven for the IVOL collar priced on this page is roughly $18.18 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 IVOL market-implied 1-standard-deviation expected move is approximately 143.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IVOL?
- Collars on IVOL hedge an existing long IVOL 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 IVOL implied volatility affect this collar?
- IVOL ATM IV is at 498.80% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.