OZEM Collar Strategy
OZEM (Roundhill Investments - GLP-1 & Weight Loss ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Roundhill considers weight loss medications, particularly GLP-1 agonists, to be among the most groundbreaking innovations currently reshaping the global pharmaceutical landscape. This conviction underpins the Roundhill GLP-1 & Weight Loss ETF (OZEM), which is distinguished as the world's inaugural ETF exclusively focused on the GLP-1 and broader weight management sector. Notably, OZEM employs an active management approach.
OZEM (Roundhill Investments - GLP-1 & Weight Loss ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $40.9M, a beta of 0.43 versus the broader market, a 52-week range of 23.22-37.15, average daily share volume of 19K, a public-listing history dating back to 2024. These structural characteristics shape how OZEM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.43 indicates OZEM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OZEM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on OZEM?
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 OZEM snapshot
As of June 30, 2026, spot at $33.11, ATM IV 22.40%, IV rank 1.14%, expected move 6.42%. The collar on OZEM 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 OZEM specifically: IV regime affects collar pricing on both sides; compressed OZEM IV at 22.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.42% (roughly $2.13 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 OZEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on OZEM should anchor to the underlying notional of $33.11 per share and to the trader's directional view on OZEM etf.
OZEM collar setup
The OZEM 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 OZEM near $33.11, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OZEM 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 OZEM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $33.11 | long |
| Sell 1 | Call | $35.00 | $0.07 |
| Buy 1 | Put | $31.00 | $0.11 |
OZEM collar risk and reward
- Net Premium / Debit
- -$3,315.00
- Max Profit (per contract)
- $185.00
- Max Loss (per contract)
- -$215.00
- Breakeven(s)
- $33.15
- Risk / Reward Ratio
- 0.860
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.
OZEM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OZEM. 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% | -$215.00 |
| $7.33 | -77.9% | -$215.00 |
| $14.65 | -55.8% | -$215.00 |
| $21.97 | -33.6% | -$215.00 |
| $29.29 | -11.5% | -$215.00 |
| $36.61 | +10.6% | +$185.00 |
| $43.93 | +32.7% | +$185.00 |
| $51.25 | +54.8% | +$185.00 |
| $58.57 | +76.9% | +$185.00 |
| $65.89 | +99.0% | +$185.00 |
When traders use collar on OZEM
Collars on OZEM hedge an existing long OZEM 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.
OZEM thesis for this collar
The market-implied 1-standard-deviation range for OZEM extends from approximately $30.98 on the downside to $35.24 on the upside. A OZEM collar hedges an existing long OZEM 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 OZEM IV rank near 1.14% 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 OZEM at 22.40%. As a Financial Services name, OZEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OZEM-specific events.
OZEM 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. OZEM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OZEM alongside the broader basket even when OZEM-specific fundamentals are unchanged. Always rebuild the position from current OZEM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OZEM?
- A collar on OZEM is the collar strategy applied to OZEM (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 OZEM etf trading near $33.11, the strikes shown on this page are snapped to the nearest listed OZEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OZEM 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 OZEM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.40%), the computed maximum profit is $185.00 per contract and the computed maximum loss is -$215.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OZEM collar?
- The breakeven for the OZEM collar priced on this page is roughly $33.15 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 OZEM market-implied 1-standard-deviation expected move is approximately 6.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OZEM?
- Collars on OZEM hedge an existing long OZEM 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 OZEM implied volatility affect this collar?
- OZEM ATM IV is at 22.40% with IV rank near 1.14%, 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.