NXTG Collar Strategy
NXTG (First Trust Indxx NextG ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The First Trust Indxx NextG ETF, formerly First Trust Nasdaq Smartphone Index Fund, seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the Indxx 5G & NextG Thematic Index SM. The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts that comprise the Index.
NXTG (First Trust Indxx NextG ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $503.0M, a beta of 1.18 versus the broader market, a 52-week range of 90.37-146.92, average daily share volume of 7K, a public-listing history dating back to 2011. These structural characteristics shape how NXTG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places NXTG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NXTG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NXTG?
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 NXTG snapshot
As of May 15, 2026, spot at $143.48, ATM IV 18.60%, IV rank 4.96%, expected move 5.33%. The collar on NXTG 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 NXTG specifically: IV regime affects collar pricing on both sides; compressed NXTG IV at 18.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.33% (roughly $7.65 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 NXTG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NXTG should anchor to the underlying notional of $143.48 per share and to the trader's directional view on NXTG etf.
NXTG collar setup
The NXTG 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 NXTG near $143.48, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NXTG 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 NXTG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $143.48 | long |
| Sell 1 | Call | $150.00 | $0.96 |
| Buy 1 | Put | $135.00 | $1.15 |
NXTG collar risk and reward
- Net Premium / Debit
- -$14,367.00
- Max Profit (per contract)
- $633.00
- Max Loss (per contract)
- -$867.00
- Breakeven(s)
- $143.67
- Risk / Reward Ratio
- 0.730
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.
NXTG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NXTG. 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% | -$867.00 |
| $31.73 | -77.9% | -$867.00 |
| $63.46 | -55.8% | -$867.00 |
| $95.18 | -33.7% | -$867.00 |
| $126.90 | -11.6% | -$867.00 |
| $158.63 | +10.6% | +$633.00 |
| $190.35 | +32.7% | +$633.00 |
| $222.07 | +54.8% | +$633.00 |
| $253.79 | +76.9% | +$633.00 |
| $285.52 | +99.0% | +$633.00 |
When traders use collar on NXTG
Collars on NXTG hedge an existing long NXTG 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.
NXTG thesis for this collar
The market-implied 1-standard-deviation range for NXTG extends from approximately $135.83 on the downside to $151.13 on the upside. A NXTG collar hedges an existing long NXTG 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 NXTG IV rank near 4.96% 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 NXTG at 18.60%. As a Financial Services name, NXTG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NXTG-specific events.
NXTG 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. NXTG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NXTG alongside the broader basket even when NXTG-specific fundamentals are unchanged. Always rebuild the position from current NXTG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NXTG?
- A collar on NXTG is the collar strategy applied to NXTG (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 NXTG etf trading near $143.48, the strikes shown on this page are snapped to the nearest listed NXTG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NXTG 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 NXTG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 18.60%), the computed maximum profit is $633.00 per contract and the computed maximum loss is -$867.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NXTG collar?
- The breakeven for the NXTG collar priced on this page is roughly $143.67 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 NXTG market-implied 1-standard-deviation expected move is approximately 5.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NXTG?
- Collars on NXTG hedge an existing long NXTG 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 NXTG implied volatility affect this collar?
- NXTG ATM IV is at 18.60% with IV rank near 4.96%, 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.