SIZE Collar Strategy
SIZE (iShares MSCI USA Size Factor ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
This exchange-traded fund endeavors to mirror the performance of a specific index. Its portfolio primarily consists of U.S.-based companies, focusing on those categorized as large or mid-capitalization. A distinguishing feature of its selection process is an emphasis on firms within this group that exhibit a comparatively modest average market value.
SIZE (iShares MSCI USA Size Factor ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $423.9M, a beta of 0.97 versus the broader market, a 52-week range of 153.76-178.34, average daily share volume of 6K, a public-listing history dating back to 2013. These structural characteristics shape how SIZE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places SIZE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SIZE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SIZE?
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 SIZE snapshot
As of June 29, 2026, spot at $177.79, ATM IV 12.50%, IV rank 9.53%, expected move 3.58%. The collar on SIZE 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 18-day expiry.
Why this collar structure on SIZE specifically: IV regime affects collar pricing on both sides; compressed SIZE IV at 12.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.58% (roughly $6.37 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SIZE expiries trade a higher absolute premium for lower per-day decay. Position sizing on SIZE should anchor to the underlying notional of $177.79 per share and to the trader's directional view on SIZE etf.
SIZE collar setup
The SIZE 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 SIZE near $177.79, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SIZE chain at a 18-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 SIZE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $177.79 | long |
| Sell 1 | Call | $185.00 | $0.06 |
| Buy 1 | Put | $169.00 | $0.28 |
SIZE collar risk and reward
- Net Premium / Debit
- -$17,801.00
- Max Profit (per contract)
- $699.00
- Max Loss (per contract)
- -$901.00
- Breakeven(s)
- $178.01
- Risk / Reward Ratio
- 0.776
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.
SIZE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SIZE. 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% | -$901.00 |
| $39.32 | -77.9% | -$901.00 |
| $78.63 | -55.8% | -$901.00 |
| $117.94 | -33.7% | -$901.00 |
| $157.25 | -11.6% | -$901.00 |
| $196.56 | +10.6% | +$699.00 |
| $235.87 | +32.7% | +$699.00 |
| $275.17 | +54.8% | +$699.00 |
| $314.48 | +76.9% | +$699.00 |
| $353.79 | +99.0% | +$699.00 |
When traders use collar on SIZE
Collars on SIZE hedge an existing long SIZE 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.
SIZE thesis for this collar
The market-implied 1-standard-deviation range for SIZE extends from approximately $171.42 on the downside to $184.16 on the upside. A SIZE collar hedges an existing long SIZE 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 SIZE IV rank near 9.53% 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 SIZE at 12.50%. As a Financial Services name, SIZE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SIZE-specific events.
SIZE 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. SIZE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SIZE alongside the broader basket even when SIZE-specific fundamentals are unchanged. Always rebuild the position from current SIZE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SIZE?
- A collar on SIZE is the collar strategy applied to SIZE (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 SIZE etf trading near $177.79, the strikes shown on this page are snapped to the nearest listed SIZE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SIZE 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 SIZE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 12.50%), the computed maximum profit is $699.00 per contract and the computed maximum loss is -$901.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SIZE collar?
- The breakeven for the SIZE collar priced on this page is roughly $178.01 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 SIZE market-implied 1-standard-deviation expected move is approximately 3.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SIZE?
- Collars on SIZE hedge an existing long SIZE 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 SIZE implied volatility affect this collar?
- SIZE ATM IV is at 12.50% with IV rank near 9.53%, 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.