NEAR Collar Strategy
NEAR (iShares Short Duration Bond Active ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on CBOE.
The iShares Short Duration Bond Active ETF seeks total return in excess of the reference benchmark.
NEAR (iShares Short Duration Bond Active ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $4.33B, a beta of 0.22 versus the broader market, a 52-week range of 50.58-51.37, average daily share volume of 651K, a public-listing history dating back to 2013. These structural characteristics shape how NEAR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.22 indicates NEAR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NEAR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NEAR?
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 NEAR snapshot
As of May 15, 2026, spot at $50.61, ATM IV 25.60%, IV rank 12.56%, expected move 7.34%. The collar on NEAR 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 NEAR specifically: IV regime affects collar pricing on both sides; compressed NEAR IV at 25.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.34% (roughly $3.71 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 NEAR expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEAR should anchor to the underlying notional of $50.61 per share and to the trader's directional view on NEAR etf.
NEAR collar setup
The NEAR 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 NEAR near $50.61, the first option leg uses a $53.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEAR 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 NEAR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $50.61 | long |
| Sell 1 | Call | $53.14 | N/A |
| Buy 1 | Put | $48.08 | N/A |
NEAR 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.
NEAR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NEAR. 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 NEAR
Collars on NEAR hedge an existing long NEAR 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.
NEAR thesis for this collar
The market-implied 1-standard-deviation range for NEAR extends from approximately $46.90 on the downside to $54.32 on the upside. A NEAR collar hedges an existing long NEAR 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 NEAR IV rank near 12.56% 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 NEAR at 25.60%. As a Financial Services name, NEAR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEAR-specific events.
NEAR 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. NEAR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEAR alongside the broader basket even when NEAR-specific fundamentals are unchanged. Always rebuild the position from current NEAR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NEAR?
- A collar on NEAR is the collar strategy applied to NEAR (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 NEAR etf trading near $50.61, the strikes shown on this page are snapped to the nearest listed NEAR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEAR 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 NEAR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.60%), 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 NEAR collar?
- The breakeven for the NEAR 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 NEAR market-implied 1-standard-deviation expected move is approximately 7.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NEAR?
- Collars on NEAR hedge an existing long NEAR 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 NEAR implied volatility affect this collar?
- NEAR ATM IV is at 25.60% with IV rank near 12.56%, 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.