ROBO Collar Strategy
ROBO (L&G ROBO Global Robotics and Automation UCITS ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
ROBO Global Robotics and Automation UCITS ETF
ROBO (L&G ROBO Global Robotics and Automation UCITS ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $2.21B, a beta of 1.70 versus the broader market, a 52-week range of 54.78-87.5, average daily share volume of 171K, a public-listing history dating back to 2013. These structural characteristics shape how ROBO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.70 indicates ROBO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ROBO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ROBO?
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 ROBO snapshot
As of May 15, 2026, spot at $85.19, ATM IV 29.70%, IV rank 47.75%, expected move 8.51%. The collar on ROBO 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 ROBO specifically: IV regime affects collar pricing on both sides; mid-range ROBO IV at 29.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.51% (roughly $7.25 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 ROBO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROBO should anchor to the underlying notional of $85.19 per share and to the trader's directional view on ROBO etf.
ROBO collar setup
The ROBO 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 ROBO near $85.19, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROBO 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 ROBO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $85.19 | long |
| Sell 1 | Call | $90.00 | $1.35 |
| Buy 1 | Put | $80.00 | $1.23 |
ROBO collar risk and reward
- Net Premium / Debit
- -$8,506.50
- Max Profit (per contract)
- $493.50
- Max Loss (per contract)
- -$506.50
- Breakeven(s)
- $85.07
- Risk / Reward Ratio
- 0.974
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.
ROBO collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ROBO. 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% | -$506.50 |
| $18.84 | -77.9% | -$506.50 |
| $37.68 | -55.8% | -$506.50 |
| $56.51 | -33.7% | -$506.50 |
| $75.35 | -11.6% | -$506.50 |
| $94.18 | +10.6% | +$493.50 |
| $113.02 | +32.7% | +$493.50 |
| $131.85 | +54.8% | +$493.50 |
| $150.69 | +76.9% | +$493.50 |
| $169.52 | +99.0% | +$493.50 |
When traders use collar on ROBO
Collars on ROBO hedge an existing long ROBO 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.
ROBO thesis for this collar
The market-implied 1-standard-deviation range for ROBO extends from approximately $77.94 on the downside to $92.44 on the upside. A ROBO collar hedges an existing long ROBO 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 ROBO IV rank near 47.75% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ROBO should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ROBO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROBO-specific events.
ROBO 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. ROBO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ROBO alongside the broader basket even when ROBO-specific fundamentals are unchanged. Always rebuild the position from current ROBO chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ROBO?
- A collar on ROBO is the collar strategy applied to ROBO (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 ROBO etf trading near $85.19, the strikes shown on this page are snapped to the nearest listed ROBO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ROBO 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 ROBO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is $493.50 per contract and the computed maximum loss is -$506.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ROBO collar?
- The breakeven for the ROBO collar priced on this page is roughly $85.07 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 ROBO market-implied 1-standard-deviation expected move is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ROBO?
- Collars on ROBO hedge an existing long ROBO 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 ROBO implied volatility affect this collar?
- ROBO ATM IV is at 29.70% with IV rank near 47.75%, 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.