QDTE Collar Strategy
QDTE (Roundhill Investments - Innovation-100 0DTE Covered Call Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The Roundhill Innovation-100 0DTE Covered Call Strategy ETF (“QDTE”) is the first ETF to utilize zero days to expiry (“0DTE”)*** options on an innovation index (the "Innovation-100 Index" as defined in the Fund Prospectus). QDTE seeks to provide overnight exposure to the Innovation-100 Index and generate income each morning by selling out-of-the-money 0DTE calls on the Index. QDTE is an actively-managed ETF.
QDTE (Roundhill Investments - Innovation-100 0DTE Covered Call Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $836.2M, a beta of 1.23 versus the broader market, a 52-week range of 26.745-36.6, average daily share volume of 601K, a public-listing history dating back to 2024. These structural characteristics shape how QDTE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places QDTE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QDTE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on QDTE?
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 QDTE snapshot
As of May 15, 2026, spot at $31.27, ATM IV 14.20%, IV rank 2.74%, expected move 4.07%. The collar on QDTE 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 63-day expiry.
Why this collar structure on QDTE specifically: IV regime affects collar pricing on both sides; compressed QDTE IV at 14.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.07% (roughly $1.27 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated QDTE expiries trade a higher absolute premium for lower per-day decay. Position sizing on QDTE should anchor to the underlying notional of $31.27 per share and to the trader's directional view on QDTE etf.
QDTE collar setup
The QDTE 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 QDTE near $31.27, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QDTE chain at a 63-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 QDTE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $31.27 | long |
| Sell 1 | Call | $33.00 | $0.51 |
| Buy 1 | Put | $30.00 | $2.18 |
QDTE collar risk and reward
- Net Premium / Debit
- -$3,293.50
- Max Profit (per contract)
- $6.50
- Max Loss (per contract)
- -$293.50
- Breakeven(s)
- $32.94
- Risk / Reward Ratio
- 0.022
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.
QDTE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on QDTE. 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% | -$293.50 |
| $6.92 | -77.9% | -$293.50 |
| $13.84 | -55.8% | -$293.50 |
| $20.75 | -33.6% | -$293.50 |
| $27.66 | -11.5% | -$293.50 |
| $34.57 | +10.6% | +$6.50 |
| $41.49 | +32.7% | +$6.50 |
| $48.40 | +54.8% | +$6.50 |
| $55.31 | +76.9% | +$6.50 |
| $62.23 | +99.0% | +$6.50 |
When traders use collar on QDTE
Collars on QDTE hedge an existing long QDTE 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.
QDTE thesis for this collar
The market-implied 1-standard-deviation range for QDTE extends from approximately $30.00 on the downside to $32.54 on the upside. A QDTE collar hedges an existing long QDTE 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 QDTE IV rank near 2.74% 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 QDTE at 14.20%. As a Financial Services name, QDTE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QDTE-specific events.
QDTE 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. QDTE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QDTE alongside the broader basket even when QDTE-specific fundamentals are unchanged. Always rebuild the position from current QDTE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on QDTE?
- A collar on QDTE is the collar strategy applied to QDTE (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 QDTE etf trading near $31.27, the strikes shown on this page are snapped to the nearest listed QDTE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QDTE 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 QDTE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 14.20%), the computed maximum profit is $6.50 per contract and the computed maximum loss is -$293.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QDTE collar?
- The breakeven for the QDTE collar priced on this page is roughly $32.94 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 QDTE market-implied 1-standard-deviation expected move is approximately 4.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on QDTE?
- Collars on QDTE hedge an existing long QDTE 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 QDTE implied volatility affect this collar?
- QDTE ATM IV is at 14.20% with IV rank near 2.74%, 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.