QRFT Collar Strategy
QRFT (QRAFT AI-Enhanced U.S. Large Cap ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is an actively-managed ETF that seeks to achieve its investment objective by utilizing an investment strategy enhanced by the use of artificial intelligence. The fund invests at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in securities of U.S.-listed large capitalization companies. In pursuing its investment objective, the Adviser consults a database generated by Qraft's AI Quantitative Investment System, which automatically evaluates and filters data according to parameters supporting a particular investment thesis. The fund is non-diversified.
QRFT (QRAFT AI-Enhanced U.S. Large Cap ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $15.0M, a beta of 1.07 versus the broader market, a 52-week range of 52.5-69.255, average daily share volume of 2K, a public-listing history dating back to 2019. These structural characteristics shape how QRFT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places QRFT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QRFT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on QRFT?
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 QRFT snapshot
As of May 15, 2026, spot at $68.63, ATM IV 14.80%, IV rank 0.58%, expected move 4.24%. The collar on QRFT 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 QRFT specifically: IV regime affects collar pricing on both sides; compressed QRFT IV at 14.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.24% (roughly $2.91 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 QRFT expiries trade a higher absolute premium for lower per-day decay. Position sizing on QRFT should anchor to the underlying notional of $68.63 per share and to the trader's directional view on QRFT etf.
QRFT collar setup
The QRFT 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 QRFT near $68.63, the first option leg uses a $72.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QRFT 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 QRFT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $68.63 | long |
| Sell 1 | Call | $72.00 | $0.59 |
| Buy 1 | Put | $65.00 | $0.53 |
QRFT collar risk and reward
- Net Premium / Debit
- -$6,857.00
- Max Profit (per contract)
- $343.00
- Max Loss (per contract)
- -$357.00
- Breakeven(s)
- $68.57
- Risk / Reward Ratio
- 0.961
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.
QRFT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on QRFT. 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% | -$357.00 |
| $15.18 | -77.9% | -$357.00 |
| $30.36 | -55.8% | -$357.00 |
| $45.53 | -33.7% | -$357.00 |
| $60.70 | -11.5% | -$357.00 |
| $75.88 | +10.6% | +$343.00 |
| $91.05 | +32.7% | +$343.00 |
| $106.22 | +54.8% | +$343.00 |
| $121.40 | +76.9% | +$343.00 |
| $136.57 | +99.0% | +$343.00 |
When traders use collar on QRFT
Collars on QRFT hedge an existing long QRFT 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.
QRFT thesis for this collar
The market-implied 1-standard-deviation range for QRFT extends from approximately $65.72 on the downside to $71.54 on the upside. A QRFT collar hedges an existing long QRFT 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 QRFT IV rank near 0.58% 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 QRFT at 14.80%. As a Financial Services name, QRFT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QRFT-specific events.
QRFT 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. QRFT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QRFT alongside the broader basket even when QRFT-specific fundamentals are unchanged. Always rebuild the position from current QRFT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on QRFT?
- A collar on QRFT is the collar strategy applied to QRFT (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 QRFT etf trading near $68.63, the strikes shown on this page are snapped to the nearest listed QRFT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QRFT 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 QRFT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 14.80%), the computed maximum profit is $343.00 per contract and the computed maximum loss is -$357.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QRFT collar?
- The breakeven for the QRFT collar priced on this page is roughly $68.57 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 QRFT market-implied 1-standard-deviation expected move is approximately 4.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on QRFT?
- Collars on QRFT hedge an existing long QRFT 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 QRFT implied volatility affect this collar?
- QRFT ATM IV is at 14.80% with IV rank near 0.58%, 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.