NFLW Collar Strategy
NFLW (Roundhill Investments - NFLX WeeklyPay ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
The Roundhill NFLX WeeklyPay ETF, designated as NFLW, offers investors a strategic solution for combining regular income with the prospects of capital growth. This actively managed fund aims to generate weekly distributions and deliver a gross calendar week return equivalent to 120% (1.2 times) the total return of Netflix (Nasdaq: NFLX) common shares, before accounting for any fees and expenses.
NFLW (Roundhill Investments - NFLX WeeklyPay ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $7.0M, a beta of -0.46 versus the broader market, a 52-week range of 16.25-55.24, average daily share volume of 65K, a public-listing history dating back to 2025. These structural characteristics shape how NFLW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.46 indicates NFLW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NFLW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NFLW?
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 NFLW snapshot
As of June 30, 2026, spot at $16.39, ATM IV 51.90%, IV rank 8.40%, expected move 14.88%. The collar on NFLW 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 80-day expiry.
Why this collar structure on NFLW specifically: IV regime affects collar pricing on both sides; compressed NFLW IV at 51.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.88% (roughly $2.44 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NFLW expiries trade a higher absolute premium for lower per-day decay. Position sizing on NFLW should anchor to the underlying notional of $16.39 per share and to the trader's directional view on NFLW etf.
NFLW collar setup
The NFLW 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 NFLW near $16.39, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NFLW chain at a 80-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 NFLW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.39 | long |
| Sell 1 | Call | $17.00 | $2.15 |
| Buy 1 | Put | $16.00 | $2.03 |
NFLW collar risk and reward
- Net Premium / Debit
- -$1,626.50
- Max Profit (per contract)
- $73.50
- Max Loss (per contract)
- -$26.50
- Breakeven(s)
- $16.27
- Risk / Reward Ratio
- 2.774
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.
NFLW collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NFLW. 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 | -99.9% | -$26.50 |
| $3.63 | -77.8% | -$26.50 |
| $7.26 | -55.7% | -$26.50 |
| $10.88 | -33.6% | -$26.50 |
| $14.50 | -11.5% | -$26.50 |
| $18.12 | +10.6% | +$73.50 |
| $21.75 | +32.7% | +$73.50 |
| $25.37 | +54.8% | +$73.50 |
| $28.99 | +76.9% | +$73.50 |
| $32.62 | +99.0% | +$73.50 |
When traders use collar on NFLW
Collars on NFLW hedge an existing long NFLW 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.
NFLW thesis for this collar
The market-implied 1-standard-deviation range for NFLW extends from approximately $13.95 on the downside to $18.83 on the upside. A NFLW collar hedges an existing long NFLW 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 NFLW IV rank near 8.40% 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 NFLW at 51.90%. As a Financial Services name, NFLW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NFLW-specific events.
NFLW 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. NFLW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NFLW alongside the broader basket even when NFLW-specific fundamentals are unchanged. Always rebuild the position from current NFLW chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NFLW?
- A collar on NFLW is the collar strategy applied to NFLW (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 NFLW etf trading near $16.39, the strikes shown on this page are snapped to the nearest listed NFLW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NFLW 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 NFLW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.90%), the computed maximum profit is $73.50 per contract and the computed maximum loss is -$26.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NFLW collar?
- The breakeven for the NFLW collar priced on this page is roughly $16.27 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 NFLW market-implied 1-standard-deviation expected move is approximately 14.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NFLW?
- Collars on NFLW hedge an existing long NFLW 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 NFLW implied volatility affect this collar?
- NFLW ATM IV is at 51.90% with IV rank near 8.40%, 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.