OUSM Collar Strategy
OUSM (ALPS O'Shares U.S. Small-Cap Quality Dividend ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under normal market conditions, the fund will invest at least 80% of its total assets in the components of the index. The index is designed to reflect the performance of publicly-listed small-capitalization dividend-paying issuers in the United States that meet certain market capitalization, liquidity, high quality, low volatility and dividend yield thresholds, as determined by O'Shares Investment Advisers, LLC (the "index provider").
OUSM (ALPS O'Shares U.S. Small-Cap Quality Dividend ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $876.7M, a beta of 0.83 versus the broader market, a 52-week range of 42.081-47.97, average daily share volume of 65K, a public-listing history dating back to 2016. These structural characteristics shape how OUSM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places OUSM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. OUSM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on OUSM?
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 OUSM snapshot
As of June 30, 2026, spot at $47.57, ATM IV 30.80%, IV rank 38.41%, expected move 8.83%. The collar on OUSM 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 17-day expiry.
Why this collar structure on OUSM specifically: IV regime affects collar pricing on both sides; mid-range OUSM IV at 30.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.83% (roughly $4.20 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OUSM expiries trade a higher absolute premium for lower per-day decay. Position sizing on OUSM should anchor to the underlying notional of $47.57 per share and to the trader's directional view on OUSM etf.
OUSM collar setup
The OUSM 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 OUSM near $47.57, the first option leg uses a $49.95 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OUSM chain at a 17-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 OUSM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $47.57 | long |
| Sell 1 | Call | $49.95 | N/A |
| Buy 1 | Put | $45.19 | N/A |
OUSM collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
OUSM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OUSM. 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.
When traders use collar on OUSM
Collars on OUSM hedge an existing long OUSM 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.
OUSM thesis for this collar
The market-implied 1-standard-deviation range for OUSM extends from approximately $43.37 on the downside to $51.77 on the upside. A OUSM collar hedges an existing long OUSM 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 OUSM IV rank near 38.41% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on OUSM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, OUSM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OUSM-specific events.
OUSM 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. OUSM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OUSM alongside the broader basket even when OUSM-specific fundamentals are unchanged. Always rebuild the position from current OUSM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OUSM?
- A collar on OUSM is the collar strategy applied to OUSM (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 OUSM etf trading near $47.57, the strikes shown on this page are snapped to the nearest listed OUSM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OUSM 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 OUSM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OUSM collar?
- The breakeven for the OUSM collar priced on this page is no defined breakeven on the modeled curve 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 OUSM market-implied 1-standard-deviation expected move is approximately 8.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OUSM?
- Collars on OUSM hedge an existing long OUSM 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 OUSM implied volatility affect this collar?
- OUSM ATM IV is at 30.80% with IV rank near 38.41%, 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.