NTSX Collar Strategy
NTSX (WisdomTree U.S. Efficient Core Fund), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
This actively managed fund employs a systematic, model-driven strategy. Its investment goal is pursued through holdings in large-capitalization U.S. equities and positions in U.S. Treasury futures contracts. Under typical market conditions, about 90% of its total assets are committed to American stocks. The portfolio itself is not diversified.
NTSX (WisdomTree U.S. Efficient Core Fund) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $1.37B, a beta of 1.04 versus the broader market, a 52-week range of 50.49-61.13, average daily share volume of 41K, a public-listing history dating back to 2018. These structural characteristics shape how NTSX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.04 places NTSX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NTSX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NTSX?
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.
NTSX snapshot
As of September 30, 2026, spot at $58.72, ATM IV 10.40%, IV rank 5.71%, expected move 2.98%. The collar on NTSX below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.
Why this collar structure on NTSX specifically: IV regime affects collar pricing on both sides; compressed NTSX IV at 10.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 2.98% (roughly $1.75 on the underlying). The 16-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NTSX expiries trade a higher absolute premium for lower per-day decay. Position sizing on NTSX should anchor to the underlying notional of $58.72 per share and to the trader's directional view on NTSX etf.
NTSX collar setup
The NTSX collar below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NTSX at $58.72 on that close, the first option leg uses a $62.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NTSX chain at a 16-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 NTSX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $58.72 | long |
| Sell 1 | Call | $62.00 | $0.07 |
| Buy 1 | Put | $56.00 | $0.10 |
NTSX collar risk and reward
- Net Premium / Debit
- -$5,875.00
- Max Profit (per contract)
- $325.00
- Max Loss (per contract)
- -$275.00
- Breakeven(s)
- $58.75
- Risk / Reward Ratio
- 1.182
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.
NTSX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NTSX. 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% | -$275.00 |
| $12.99 | -77.9% | -$275.00 |
| $25.97 | -55.8% | -$275.00 |
| $38.96 | -33.7% | -$275.00 |
| $51.94 | -11.5% | -$275.00 |
| $64.92 | +10.6% | +$325.00 |
| $77.90 | +32.7% | +$325.00 |
| $90.89 | +54.8% | +$325.00 |
| $103.87 | +76.9% | +$325.00 |
| $116.85 | +99.0% | +$325.00 |
When traders use collar on NTSX
Collars on NTSX hedge an existing long NTSX 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.
NTSX thesis for this collar
The market-implied 1-standard-deviation range for NTSX extends from approximately $56.97 on the downside to $60.47 on the upside. A NTSX collar hedges an existing long NTSX 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 NTSX IV rank near 5.71% 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 NTSX at 10.40%. As a Financial Services name, NTSX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NTSX-specific events.
NTSX 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. NTSX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NTSX alongside the broader basket even when NTSX-specific fundamentals are unchanged. Always rebuild the position from current NTSX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NTSX?
- A collar on NTSX is the collar strategy applied to NTSX (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 NTSX etf at $58.72 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed NTSX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NTSX 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 NTSX collar priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 10.40%), the computed maximum profit is $325.00 per contract and the computed maximum loss is -$275.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NTSX collar?
- The breakeven for the NTSX collar priced on this page is roughly $58.75 at expiration, derived from the September 30, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The NTSX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 2.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NTSX?
- Collars on NTSX hedge an existing long NTSX 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 NTSX implied volatility affect this collar?
- NTSX ATM IV is at 10.40% with IV rank near 5.71%, 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.