NLR Collar Strategy
NLR (VanEck Uranium and Nuclear ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
VanEck Uranium and Nuclear ETF (NLR) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Uranium & Nuclear Energy Index (MVNLRTR), which is intended to track the overall performance of companies involved in: (i) uranium mining; (ii) the construction, engineering and maintenance of nuclear power facilities and nuclear reactors; (iii) the production of electricity from nuclear sources; or (iv) providing equipment, technology and/or services to the nuclear power industry.
NLR (VanEck Uranium and Nuclear ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.27B, a beta of 1.21 versus the broader market, a 52-week range of 86.09-168.12, average daily share volume of 448K, a public-listing history dating back to 2007. These structural characteristics shape how NLR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.21 places NLR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NLR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NLR?
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 NLR snapshot
As of May 15, 2026, spot at $130.12, ATM IV 38.20%, IV rank 34.12%, expected move 10.95%. The collar on NLR 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 NLR specifically: IV regime affects collar pricing on both sides; mid-range NLR IV at 38.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.95% (roughly $14.25 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 NLR expiries trade a higher absolute premium for lower per-day decay. Position sizing on NLR should anchor to the underlying notional of $130.12 per share and to the trader's directional view on NLR etf.
NLR collar setup
The NLR 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 NLR near $130.12, the first option leg uses a $137.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NLR 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 NLR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $130.12 | long |
| Sell 1 | Call | $137.00 | $3.95 |
| Buy 1 | Put | $125.00 | $3.60 |
NLR collar risk and reward
- Net Premium / Debit
- -$12,977.00
- Max Profit (per contract)
- $723.00
- Max Loss (per contract)
- -$477.00
- Breakeven(s)
- $129.77
- Risk / Reward Ratio
- 1.516
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.
NLR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NLR. 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% | -$477.00 |
| $28.78 | -77.9% | -$477.00 |
| $57.55 | -55.8% | -$477.00 |
| $86.32 | -33.7% | -$477.00 |
| $115.09 | -11.6% | -$477.00 |
| $143.86 | +10.6% | +$723.00 |
| $172.62 | +32.7% | +$723.00 |
| $201.39 | +54.8% | +$723.00 |
| $230.16 | +76.9% | +$723.00 |
| $258.93 | +99.0% | +$723.00 |
When traders use collar on NLR
Collars on NLR hedge an existing long NLR 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.
NLR thesis for this collar
The market-implied 1-standard-deviation range for NLR extends from approximately $115.87 on the downside to $144.37 on the upside. A NLR collar hedges an existing long NLR 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 NLR IV rank near 34.12% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on NLR should anchor more to the directional view and the expected-move geometry. As a Financial Services name, NLR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NLR-specific events.
NLR 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. NLR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NLR alongside the broader basket even when NLR-specific fundamentals are unchanged. Always rebuild the position from current NLR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NLR?
- A collar on NLR is the collar strategy applied to NLR (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 NLR etf trading near $130.12, the strikes shown on this page are snapped to the nearest listed NLR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NLR 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 NLR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.20%), the computed maximum profit is $723.00 per contract and the computed maximum loss is -$477.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NLR collar?
- The breakeven for the NLR collar priced on this page is roughly $129.77 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 NLR market-implied 1-standard-deviation expected move is approximately 10.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NLR?
- Collars on NLR hedge an existing long NLR 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 NLR implied volatility affect this collar?
- NLR ATM IV is at 38.20% with IV rank near 34.12%, 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.