NVDL Collar Strategy
NVDL (GraniteShares 2x Long NVDA Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
This Fund aims to deliver daily returns that, before factoring in fees and expenses, are two times (200%) the daily percentage fluctuation of NVIDIA Corp's (NASDAQ: NVDA) common stock. There is no certainty, however, that the Fund will always meet this specific goal. Furthermore, investors should not expect the Fund to provide double the total accumulated return of NVDA for any timeframe extending beyond a single day.
NVDL (GraniteShares 2x Long NVDA Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $2.61B, a beta of 3.67 versus the broader market, a 52-week range of 21.53667-43.27334, average daily share volume of 24.4M, a public-listing history dating back to 2022. These structural characteristics shape how NVDL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.67 indicates NVDL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. NVDL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NVDL?
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 NVDL snapshot
As of June 29, 2026, spot at $28.41, ATM IV 73.29%, IV rank 28.16%, expected move 21.01%. The collar on NVDL 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 32-day expiry.
Why this collar structure on NVDL specifically: IV regime affects collar pricing on both sides; compressed NVDL IV at 73.29% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.01% (roughly $5.97 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NVDL expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVDL should anchor to the underlying notional of $28.41 per share and to the trader's directional view on NVDL etf.
NVDL collar setup
The NVDL 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 NVDL near $28.41, the first option leg uses a $29.83 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVDL chain at a 32-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 NVDL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.41 | long |
| Sell 1 | Call | $29.83 | $2.24 |
| Buy 1 | Put | $26.67 | $1.74 |
NVDL collar risk and reward
- Net Premium / Debit
- -$2,791.00
- Max Profit (per contract)
- $192.00
- Max Loss (per contract)
- -$124.00
- Breakeven(s)
- $27.91
- Risk / Reward Ratio
- 1.548
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.
NVDL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NVDL. 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% | -$124.00 |
| $6.29 | -77.9% | -$124.00 |
| $12.57 | -55.8% | -$124.00 |
| $18.85 | -33.6% | -$124.00 |
| $25.13 | -11.5% | -$124.00 |
| $31.41 | +10.6% | +$192.00 |
| $37.69 | +32.7% | +$192.00 |
| $43.97 | +54.8% | +$192.00 |
| $50.25 | +76.9% | +$192.00 |
| $56.53 | +99.0% | +$192.00 |
When traders use collar on NVDL
Collars on NVDL hedge an existing long NVDL 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.
NVDL thesis for this collar
The market-implied 1-standard-deviation range for NVDL extends from approximately $22.44 on the downside to $34.38 on the upside. A NVDL collar hedges an existing long NVDL 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 NVDL IV rank near 28.16% 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 NVDL at 73.29%. As a Financial Services name, NVDL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVDL-specific events.
NVDL 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. NVDL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVDL alongside the broader basket even when NVDL-specific fundamentals are unchanged. Always rebuild the position from current NVDL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NVDL?
- A collar on NVDL is the collar strategy applied to NVDL (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 NVDL etf trading near $28.41, the strikes shown on this page are snapped to the nearest listed NVDL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVDL 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 NVDL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 73.29%), the computed maximum profit is $192.00 per contract and the computed maximum loss is -$124.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVDL collar?
- The breakeven for the NVDL collar priced on this page is roughly $27.91 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 NVDL market-implied 1-standard-deviation expected move is approximately 21.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NVDL?
- Collars on NVDL hedge an existing long NVDL 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 NVDL implied volatility affect this collar?
- NVDL ATM IV is at 73.29% with IV rank near 28.16%, 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.