NVDW Collar Strategy
NVDW (Roundhill Investments - NVDA WeeklyPay ETF), in the Financial Services sector, (Financial - Capital Markets industry), listed on CBOE.
The Roundhill NVDA WeeklyPay ETF (“NVDW”) is designed for investors seeking a combination of income and growth potential. NVDW aims to provide weekly distributions and calendar week returns, before fees and expenses, equal to 1.2 times (120%) the calendar week total return of Nvidia common shares (Nasdaq: NVDA). NVDW is an actively-managed ETF.
NVDW (Roundhill Investments - NVDA WeeklyPay ETF) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $67.7M, a beta of 2.36 versus the broader market, a 52-week range of 31.77-54.05, average daily share volume of 101K, a public-listing history dating back to 2025. These structural characteristics shape how NVDW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.36 indicates NVDW has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. NVDW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NVDW?
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 NVDW snapshot
As of May 15, 2026, spot at $44.17, ATM IV 51.90%, IV rank 19.77%, expected move 14.88%. The collar on NVDW 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 NVDW specifically: IV regime affects collar pricing on both sides; compressed NVDW 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 $6.57 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 NVDW expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVDW should anchor to the underlying notional of $44.17 per share and to the trader's directional view on NVDW etf.
NVDW collar setup
The NVDW 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 NVDW near $44.17, the first option leg uses a $46.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVDW 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 NVDW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $44.17 | long |
| Sell 1 | Call | $46.00 | $1.43 |
| Buy 1 | Put | $42.00 | $2.48 |
NVDW collar risk and reward
- Net Premium / Debit
- -$4,522.00
- Max Profit (per contract)
- $78.00
- Max Loss (per contract)
- -$322.00
- Breakeven(s)
- $45.22
- Risk / Reward Ratio
- 0.242
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.
NVDW collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NVDW. 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% | -$322.00 |
| $9.78 | -77.9% | -$322.00 |
| $19.54 | -55.8% | -$322.00 |
| $29.31 | -33.7% | -$322.00 |
| $39.07 | -11.5% | -$322.00 |
| $48.84 | +10.6% | +$78.00 |
| $58.60 | +32.7% | +$78.00 |
| $68.37 | +54.8% | +$78.00 |
| $78.13 | +76.9% | +$78.00 |
| $87.90 | +99.0% | +$78.00 |
When traders use collar on NVDW
Collars on NVDW hedge an existing long NVDW 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.
NVDW thesis for this collar
The market-implied 1-standard-deviation range for NVDW extends from approximately $37.60 on the downside to $50.74 on the upside. A NVDW collar hedges an existing long NVDW 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 NVDW IV rank near 19.77% 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 NVDW at 51.90%. As a Financial Services name, NVDW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVDW-specific events.
NVDW 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. NVDW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVDW alongside the broader basket even when NVDW-specific fundamentals are unchanged. Always rebuild the position from current NVDW chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NVDW?
- A collar on NVDW is the collar strategy applied to NVDW (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 NVDW etf trading near $44.17, the strikes shown on this page are snapped to the nearest listed NVDW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVDW 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 NVDW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.90%), the computed maximum profit is $78.00 per contract and the computed maximum loss is -$322.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVDW collar?
- The breakeven for the NVDW collar priced on this page is roughly $45.22 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 NVDW 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 NVDW?
- Collars on NVDW hedge an existing long NVDW 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 NVDW implied volatility affect this collar?
- NVDW ATM IV is at 51.90% with IV rank near 19.77%, 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.