MSOS Collar Strategy
MSOS (AdvisorShares Pure US Cannabis ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The First U.S.-Listed ETF Available – MSOS is the first actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators. The portfolio manager allocates across an investable universe of U.S. companies spanning a variety of cannabis-related businesses. Easy Access to U.S. Cannabis Exposure – MSOS trades on the NYSE Arca exchange, offering exposure to multiple cannabis securities in a convenient, single trade. To buy U.S. cannabis companies on your own, investors will need to seek these stocks out in smaller, foreign exchanges. Experience – MSOS’ portfolio manager has deep experience in the capital markets and well-established expertise investing in highly-regulated areas in the equity markets, including cannabis.
MSOS (AdvisorShares Pure US Cannabis ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $706.4M, a beta of 0.87 versus the broader market, a 52-week range of 2.06-7.25, average daily share volume of 8.5M, a public-listing history dating back to 2020. These structural characteristics shape how MSOS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places MSOS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on MSOS?
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 MSOS snapshot
As of May 15, 2026, spot at $4.42, ATM IV 62.09%, IV rank 18.49%, expected move 17.80%. The collar on MSOS 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 28-day expiry.
Why this collar structure on MSOS specifically: IV regime affects collar pricing on both sides; compressed MSOS IV at 62.09% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.80% (roughly $0.79 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MSOS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MSOS should anchor to the underlying notional of $4.42 per share and to the trader's directional view on MSOS etf.
MSOS collar setup
The MSOS 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 MSOS near $4.42, the first option leg uses a $4.64 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MSOS chain at a 28-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 MSOS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.42 | long |
| Sell 1 | Call | $4.64 | N/A |
| Buy 1 | Put | $4.20 | N/A |
MSOS collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
MSOS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MSOS. 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.
When traders use collar on MSOS
Collars on MSOS hedge an existing long MSOS 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.
MSOS thesis for this collar
The market-implied 1-standard-deviation range for MSOS extends from approximately $3.63 on the downside to $5.21 on the upside. A MSOS collar hedges an existing long MSOS 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 MSOS IV rank near 18.49% 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 MSOS at 62.09%. As a Financial Services name, MSOS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MSOS-specific events.
MSOS 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. MSOS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MSOS alongside the broader basket even when MSOS-specific fundamentals are unchanged. Always rebuild the position from current MSOS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MSOS?
- A collar on MSOS is the collar strategy applied to MSOS (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 MSOS etf trading near $4.42, the strikes shown on this page are snapped to the nearest listed MSOS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MSOS 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 MSOS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 62.09%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MSOS collar?
- The breakeven for the MSOS collar priced on this page is no defined breakeven on the modeled curve 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 MSOS market-implied 1-standard-deviation expected move is approximately 17.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MSOS?
- Collars on MSOS hedge an existing long MSOS 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 MSOS implied volatility affect this collar?
- MSOS ATM IV is at 62.09% with IV rank near 18.49%, 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.