SPRX Collar Strategy
SPRX (Spear Alpha ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Spear Alpha ETF (SPRX) operates as an actively managed exchange-traded fund, primarily allocating its capital to equity securities. This includes both common shares and American Depositary Receipts (ADRs). The investment strategy, guided by Spear Advisors LLC (the Adviser), seeks out companies deemed poised to capitalize on transformative breakthroughs in industrial technology. Specifically, the Adviser defines 'industrial technology innovation' as technological advancements currently reshaping, or possessing the potential to fundamentally reshape, the industrial sector. It is important to note that this fund maintains a non-diversified portfolio.
SPRX (Spear Alpha ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $118.8M, a beta of 2.19 versus the broader market, a 52-week range of 28.27-59.1, average daily share volume of 147K, a public-listing history dating back to 2021. These structural characteristics shape how SPRX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.19 indicates SPRX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on SPRX?
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 SPRX snapshot
As of June 29, 2026, spot at $56.00, ATM IV 50.10%, IV rank 56.11%, expected move 14.36%. The collar on SPRX 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 SPRX specifically: IV regime affects collar pricing on both sides; mid-range SPRX IV at 50.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.36% (roughly $8.04 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 SPRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPRX should anchor to the underlying notional of $56.00 per share and to the trader's directional view on SPRX etf.
SPRX collar setup
The SPRX 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 SPRX near $56.00, the first option leg uses a $58.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPRX 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 SPRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $56.00 | long |
| Sell 1 | Call | $58.00 | $1.38 |
| Buy 1 | Put | $53.00 | $1.58 |
SPRX collar risk and reward
- Net Premium / Debit
- -$5,620.00
- Max Profit (per contract)
- $180.00
- Max Loss (per contract)
- -$320.00
- Breakeven(s)
- $56.20
- Risk / Reward Ratio
- 0.563
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.
SPRX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SPRX. 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% | -$320.00 |
| $12.39 | -77.9% | -$320.00 |
| $24.77 | -55.8% | -$320.00 |
| $37.15 | -33.7% | -$320.00 |
| $49.53 | -11.5% | -$320.00 |
| $61.91 | +10.6% | +$180.00 |
| $74.29 | +32.7% | +$180.00 |
| $86.68 | +54.8% | +$180.00 |
| $99.06 | +76.9% | +$180.00 |
| $111.44 | +99.0% | +$180.00 |
When traders use collar on SPRX
Collars on SPRX hedge an existing long SPRX 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.
SPRX thesis for this collar
The market-implied 1-standard-deviation range for SPRX extends from approximately $47.96 on the downside to $64.04 on the upside. A SPRX collar hedges an existing long SPRX 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 SPRX IV rank near 56.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SPRX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SPRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPRX-specific events.
SPRX 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. SPRX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SPRX alongside the broader basket even when SPRX-specific fundamentals are unchanged. Always rebuild the position from current SPRX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SPRX?
- A collar on SPRX is the collar strategy applied to SPRX (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 SPRX etf trading near $56.00, the strikes shown on this page are snapped to the nearest listed SPRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SPRX 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 SPRX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.10%), the computed maximum profit is $180.00 per contract and the computed maximum loss is -$320.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SPRX collar?
- The breakeven for the SPRX collar priced on this page is roughly $56.20 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 SPRX market-implied 1-standard-deviation expected move is approximately 14.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SPRX?
- Collars on SPRX hedge an existing long SPRX 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 SPRX implied volatility affect this collar?
- SPRX ATM IV is at 50.10% with IV rank near 56.11%, 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.