MSTZ Collar Strategy
MSTZ (T-REX 2X Inverse MSTR Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund, under normal circumstances, invests in swap agreements that provide 200% inverse (opposite)daily exposure to MSTR equal to at least 80% of the fund’s net assets (plus borrowings for investment purposes). MicroStrategy Inc. engages in the provision of enterprise analytics and mobility software. The fund is non-diversified.
MSTZ (T-REX 2X Inverse MSTR Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $100.8M, a beta of -2.43 versus the broader market, a 52-week range of 3.09-28.71, average daily share volume of 19.4M, a public-listing history dating back to 2024. These structural characteristics shape how MSTZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.43 indicates MSTZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on MSTZ?
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 MSTZ snapshot
As of May 15, 2026, spot at $4.96, ATM IV 154.06%, IV rank 55.58%, expected move 44.17%. The collar on MSTZ 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 MSTZ specifically: IV regime affects collar pricing on both sides; mid-range MSTZ IV at 154.06% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 44.17% (roughly $2.19 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 MSTZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on MSTZ should anchor to the underlying notional of $4.96 per share and to the trader's directional view on MSTZ etf.
MSTZ collar setup
The MSTZ 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 MSTZ near $4.96, the first option leg uses a $5.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MSTZ 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 MSTZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.96 | long |
| Sell 1 | Call | $5.00 | $0.83 |
| Buy 1 | Put | $4.50 | $0.68 |
MSTZ collar risk and reward
- Net Premium / Debit
- -$481.00
- Max Profit (per contract)
- $19.00
- Max Loss (per contract)
- -$31.00
- Breakeven(s)
- $4.81
- Risk / Reward Ratio
- 0.613
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.
MSTZ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MSTZ. 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 | -99.8% | -$31.00 |
| $1.11 | -77.7% | -$31.00 |
| $2.20 | -55.6% | -$31.00 |
| $3.30 | -33.5% | -$31.00 |
| $4.39 | -11.4% | -$31.00 |
| $5.49 | +10.6% | +$19.00 |
| $6.58 | +32.7% | +$19.00 |
| $7.68 | +54.8% | +$19.00 |
| $8.77 | +76.9% | +$19.00 |
| $9.87 | +99.0% | +$19.00 |
When traders use collar on MSTZ
Collars on MSTZ hedge an existing long MSTZ 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.
MSTZ thesis for this collar
The market-implied 1-standard-deviation range for MSTZ extends from approximately $2.77 on the downside to $7.15 on the upside. A MSTZ collar hedges an existing long MSTZ 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 MSTZ IV rank near 55.58% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MSTZ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, MSTZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MSTZ-specific events.
MSTZ 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. MSTZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MSTZ alongside the broader basket even when MSTZ-specific fundamentals are unchanged. Always rebuild the position from current MSTZ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MSTZ?
- A collar on MSTZ is the collar strategy applied to MSTZ (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 MSTZ etf trading near $4.96, the strikes shown on this page are snapped to the nearest listed MSTZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MSTZ 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 MSTZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 154.06%), the computed maximum profit is $19.00 per contract and the computed maximum loss is -$31.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MSTZ collar?
- The breakeven for the MSTZ collar priced on this page is roughly $4.81 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 MSTZ market-implied 1-standard-deviation expected move is approximately 44.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MSTZ?
- Collars on MSTZ hedge an existing long MSTZ 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 MSTZ implied volatility affect this collar?
- MSTZ ATM IV is at 154.06% with IV rank near 55.58%, 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.