MDYV Collar Strategy
MDYV (State Street SPDR S&P 400 Mid Cap Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The State Street SPDR S&P 400 Mid Cap Value ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P MidCap 400 Value Index (the "Index")The Index includes stocks exhibiting the strongest value characteristics based on: book value to price ratio; earnings to price ratio; and sales to price ratio
MDYV (State Street SPDR S&P 400 Mid Cap Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.57B, a beta of 1.06 versus the broader market, a 52-week range of 75.52-93.1, average daily share volume of 82K, a public-listing history dating back to 2005. These structural characteristics shape how MDYV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places MDYV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MDYV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on MDYV?
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 MDYV snapshot
As of May 15, 2026, spot at $88.78, ATM IV 20.70%, IV rank 1.56%, expected move 5.93%. The collar on MDYV 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 98-day expiry.
Why this collar structure on MDYV specifically: IV regime affects collar pricing on both sides; compressed MDYV IV at 20.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.93% (roughly $5.27 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MDYV expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDYV should anchor to the underlying notional of $88.78 per share and to the trader's directional view on MDYV etf.
MDYV collar setup
The MDYV 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 MDYV near $88.78, the first option leg uses a $93.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDYV chain at a 98-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 MDYV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $88.78 | long |
| Sell 1 | Call | $93.00 | $1.77 |
| Buy 1 | Put | $84.00 | $2.30 |
MDYV collar risk and reward
- Net Premium / Debit
- -$8,931.00
- Max Profit (per contract)
- $369.00
- Max Loss (per contract)
- -$531.00
- Breakeven(s)
- $89.31
- 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.
MDYV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MDYV. 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% | -$531.00 |
| $19.64 | -77.9% | -$531.00 |
| $39.27 | -55.8% | -$531.00 |
| $58.90 | -33.7% | -$531.00 |
| $78.52 | -11.6% | -$531.00 |
| $98.15 | +10.6% | +$369.00 |
| $117.78 | +32.7% | +$369.00 |
| $137.41 | +54.8% | +$369.00 |
| $157.04 | +76.9% | +$369.00 |
| $176.67 | +99.0% | +$369.00 |
When traders use collar on MDYV
Collars on MDYV hedge an existing long MDYV 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.
MDYV thesis for this collar
The market-implied 1-standard-deviation range for MDYV extends from approximately $83.51 on the downside to $94.05 on the upside. A MDYV collar hedges an existing long MDYV 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 MDYV IV rank near 1.56% 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 MDYV at 20.70%. As a Financial Services name, MDYV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDYV-specific events.
MDYV 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. MDYV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MDYV alongside the broader basket even when MDYV-specific fundamentals are unchanged. Always rebuild the position from current MDYV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MDYV?
- A collar on MDYV is the collar strategy applied to MDYV (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 MDYV etf trading near $88.78, the strikes shown on this page are snapped to the nearest listed MDYV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MDYV 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 MDYV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 20.70%), the computed maximum profit is $369.00 per contract and the computed maximum loss is -$531.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MDYV collar?
- The breakeven for the MDYV collar priced on this page is roughly $89.31 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 MDYV market-implied 1-standard-deviation expected move is approximately 5.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MDYV?
- Collars on MDYV hedge an existing long MDYV 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 MDYV implied volatility affect this collar?
- MDYV ATM IV is at 20.70% with IV rank near 1.56%, 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.