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.
This Exchange Traded Fund (ETF) is officially designated as the ROBO Global Robotics and Automation UCITS ETF, concentrating its investments within the robotics and automation industries.
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 $2.01B, a beta of 1.75 versus the broader market, a 52-week range of 59.25-90.51, average daily share volume of 223K, 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 1.75 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 June 30, 2026, spot at $85.64, ATM IV 32.20%, IV rank 54.05%, expected move 9.23%. 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 17-day expiry.
Why this collar structure on ROBO specifically: IV regime affects collar pricing on both sides; mid-range ROBO IV at 32.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.23% (roughly $7.91 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 ROBO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROBO should anchor to the underlying notional of $85.64 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 $85.64, 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 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 ROBO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $85.64 | long |
| Sell 1 | Call | $90.00 | $0.55 |
| Buy 1 | Put | $81.00 | $1.01 |
ROBO collar risk and reward
- Net Premium / Debit
- -$8,610.00
- Max Profit (per contract)
- $390.00
- Max Loss (per contract)
- -$510.00
- Breakeven(s)
- $86.10
- Risk / Reward Ratio
- 0.765
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% | -$510.00 |
| $18.94 | -77.9% | -$510.00 |
| $37.88 | -55.8% | -$510.00 |
| $56.81 | -33.7% | -$510.00 |
| $75.75 | -11.6% | -$510.00 |
| $94.68 | +10.6% | +$390.00 |
| $113.62 | +32.7% | +$390.00 |
| $132.55 | +54.8% | +$390.00 |
| $151.48 | +76.9% | +$390.00 |
| $170.42 | +99.0% | +$390.00 |
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 $77.73 on the downside to $93.55 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 54.05% 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 $85.64, 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 32.20%), the computed maximum profit is $390.00 per contract and the computed maximum loss is -$510.00 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 $86.10 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 9.23%; 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 32.20% with IV rank near 54.05%, 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.