How are ROBT 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 ROBT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $271.00 per contract and the computed maximum loss is -$329.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ROBT collar?

The breakeven for the ROBT collar priced on this page is roughly $60.29 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ROBT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ROBT implied volatility affect this collar?

ROBT ATM IV is at 23.90% with IV rank near 21.90%, 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.

ROBT Collar Strategy

ROBT (First Trust Nasdaq Artificial Intelligence and Robotics ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.

The First Trust Nasdaq Artificial Intelligence and Robotics ETF, referred to as "the Fund," aims to deliver investment returns that broadly correspond to the price movements and income generated by a specific benchmark, prior to its own operational costs. This benchmark is identified as the Nasdaq CTA Artificial Intelligence and Robotics Index ("the Index"). A core strategy involves the Fund customarily deploying a minimum of 90% of its net assets, including any investment borrowings, into the common shares and depositary receipts that comprise this Index. The Index itself is crafted to monitor the financial performance of corporations actively engaged in artificial intelligence ("AI") and robotics, encompassing a range of economic sectors such as technology, industrial, and others.

ROBT (First Trust Nasdaq Artificial Intelligence and Robotics ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $785.2M, a beta of 1.55 versus the broader market, a 52-week range of 44.01-60.44, average daily share volume of 55K, a public-listing history dating back to 2018. These structural characteristics shape how ROBT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.55 indicates ROBT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ROBT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on ROBT?

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.

ROBT snapshot

As of August 14, 2026, spot at $60.33, ATM IV 23.90%, IV rank 21.90%, expected move 6.85%. The collar on ROBT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this collar structure on ROBT specifically: IV regime affects collar pricing on both sides; compressed ROBT IV at 23.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.85% (roughly $4.13 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ROBT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROBT should anchor to the underlying notional of $60.33 per share and to the trader's directional view on ROBT etf.

ROBT collar setup

The ROBT collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ROBT at $60.33 on that close, the first option leg uses a $63.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROBT chain at a 7-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 ROBT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$60.33	long
Sell 1	Call	$63.00	$0.13
Buy 1	Put	$57.00	$0.09

ROBT collar risk and reward

Net Premium / Debit: -$6,029.00
Max Profit (per contract): $271.00
Max Loss (per contract): -$329.00
Breakeven(s): $60.29
Risk / Reward Ratio: 0.824

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.

ROBT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on ROBT. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$329.00
$13.35	-77.9%	-$329.00
$26.69	-55.8%	-$329.00
$40.02	-33.7%	-$329.00
$53.36	-11.5%	-$329.00
$66.70	+10.6%	+$271.00
$80.04	+32.7%	+$271.00
$93.38	+54.8%	+$271.00
$106.72	+76.9%	+$271.00
$120.05	+99.0%	+$271.00

When traders use collar on ROBT

Collars on ROBT hedge an existing long ROBT 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.

ROBT thesis for this collar

The market-implied 1-standard-deviation range for ROBT extends from approximately $56.20 on the downside to $64.46 on the upside. A ROBT collar hedges an existing long ROBT 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 ROBT IV rank near 21.90% 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 ROBT at 23.90%. As a Financial Services name, ROBT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROBT-specific events.

ROBT 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. ROBT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ROBT alongside the broader basket even when ROBT-specific fundamentals are unchanged. Always rebuild the position from current ROBT chain quotes before placing a trade.

Frequently asked questions

What is a collar on ROBT?: A collar on ROBT is the collar strategy applied to ROBT (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 ROBT etf at $60.33 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ROBT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ROBT 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 ROBT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $271.00 per contract and the computed maximum loss is -$329.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ROBT collar?: The breakeven for the ROBT collar priced on this page is roughly $60.29 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ROBT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on ROBT?: Collars on ROBT hedge an existing long ROBT 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 ROBT implied volatility affect this collar?: ROBT ATM IV is at 23.90% with IV rank near 21.90%, 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.