METW Collar Strategy
METW (Roundhill Investments - META WeeklyPay ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
The Roundhill META WeeklyPay ETF (“METW”) is designed for investors seeking a combination of income and growth potential. METW aims to provide weekly distributions and calendar week returns, before fees and expenses, equal to 1.2 times (120%) the calendar week total return of Meta common shares (Nasdaq: META). METW is an actively-managed ETF.
METW (Roundhill Investments - META WeeklyPay ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $11.8M, a beta of 1.27 versus the broader market, a 52-week range of 24.5894-54.53, average daily share volume of 54K, a public-listing history dating back to 2025. These structural characteristics shape how METW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.27 places METW roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. METW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on METW?
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 METW snapshot
As of May 15, 2026, spot at $28.41, ATM IV 110.20%, IV rank 29.82%, expected move 31.59%. The collar on METW 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 METW specifically: IV regime affects collar pricing on both sides; compressed METW IV at 110.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 31.59% (roughly $8.98 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 METW expiries trade a higher absolute premium for lower per-day decay. Position sizing on METW should anchor to the underlying notional of $28.41 per share and to the trader's directional view on METW etf.
METW collar setup
The METW 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 METW near $28.41, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed METW 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 METW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.41 | long |
| Sell 1 | Call | $30.00 | $2.70 |
| Buy 1 | Put | $27.00 | $2.98 |
METW collar risk and reward
- Net Premium / Debit
- -$2,869.00
- Max Profit (per contract)
- $131.00
- Max Loss (per contract)
- -$169.00
- Breakeven(s)
- $28.69
- Risk / Reward Ratio
- 0.775
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.
METW collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on METW. 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% | -$169.00 |
| $6.29 | -77.9% | -$169.00 |
| $12.57 | -55.8% | -$169.00 |
| $18.85 | -33.6% | -$169.00 |
| $25.13 | -11.5% | -$169.00 |
| $31.41 | +10.6% | +$131.00 |
| $37.69 | +32.7% | +$131.00 |
| $43.97 | +54.8% | +$131.00 |
| $50.25 | +76.9% | +$131.00 |
| $56.53 | +99.0% | +$131.00 |
When traders use collar on METW
Collars on METW hedge an existing long METW 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.
METW thesis for this collar
The market-implied 1-standard-deviation range for METW extends from approximately $19.43 on the downside to $37.39 on the upside. A METW collar hedges an existing long METW 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 METW IV rank near 29.82% 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 METW at 110.20%. As a Financial Services name, METW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to METW-specific events.
METW 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. METW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move METW alongside the broader basket even when METW-specific fundamentals are unchanged. Always rebuild the position from current METW chain quotes before placing a trade.
Frequently asked questions
- What is a collar on METW?
- A collar on METW is the collar strategy applied to METW (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 METW etf trading near $28.41, the strikes shown on this page are snapped to the nearest listed METW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are METW 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 METW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 110.20%), the computed maximum profit is $131.00 per contract and the computed maximum loss is -$169.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a METW collar?
- The breakeven for the METW collar priced on this page is roughly $28.69 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 METW market-implied 1-standard-deviation expected move is approximately 31.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on METW?
- Collars on METW hedge an existing long METW 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 METW implied volatility affect this collar?
- METW ATM IV is at 110.20% with IV rank near 29.82%, 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.