SPTI Collar Strategy
SPTI (State Street SPDR Portfolio Intermediate Term Treasury ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The State Street SPDR Portfolio Intermediate Term Treasury ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return of the Bloomberg 3-10 Year U.S. Treasury IndexOne of the low cost core State Street SPDR Portfolio ETFs, a suite of portfolio building blocks designed to provide broad, diversified exposure to core asset classesA low cost ETF that seeks to provide a exposure to U.S. Treasuries that have a remaining maturity between 3 and 10 yearMay be less sensitive to interest rate fluctuations than vehicles with longer duration
SPTI (State Street SPDR Portfolio Intermediate Term Treasury ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $10.06B, a beta of 0.80 versus the broader market, a 52-week range of 28.21-29.24, average daily share volume of 2.6M, a public-listing history dating back to 2007. These structural characteristics shape how SPTI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places SPTI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SPTI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SPTI?
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 SPTI snapshot
As of May 15, 2026, spot at $28.21, ATM IV 332.40%, IV rank 87.41%, expected move 95.30%. The collar on SPTI 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 SPTI specifically: IV regime affects collar pricing on both sides; elevated SPTI IV at 332.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 95.30% (roughly $26.88 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 SPTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPTI should anchor to the underlying notional of $28.21 per share and to the trader's directional view on SPTI etf.
SPTI collar setup
The SPTI 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 SPTI near $28.21, the first option leg uses a $29.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPTI 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 SPTI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.21 | long |
| Sell 1 | Call | $29.62 | N/A |
| Buy 1 | Put | $26.80 | N/A |
SPTI collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
SPTI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SPTI. 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.
When traders use collar on SPTI
Collars on SPTI hedge an existing long SPTI 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.
SPTI thesis for this collar
The market-implied 1-standard-deviation range for SPTI extends from approximately $1.33 on the downside to $55.09 on the upside. A SPTI collar hedges an existing long SPTI 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 SPTI IV rank near 87.41% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SPTI at 332.40%. As a Financial Services name, SPTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPTI-specific events.
SPTI 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. SPTI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SPTI alongside the broader basket even when SPTI-specific fundamentals are unchanged. Always rebuild the position from current SPTI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SPTI?
- A collar on SPTI is the collar strategy applied to SPTI (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 SPTI etf trading near $28.21, the strikes shown on this page are snapped to the nearest listed SPTI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SPTI 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 SPTI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 332.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SPTI collar?
- The breakeven for the SPTI collar priced on this page is no defined breakeven on the modeled curve 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 SPTI market-implied 1-standard-deviation expected move is approximately 95.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SPTI?
- Collars on SPTI hedge an existing long SPTI 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 SPTI implied volatility affect this collar?
- SPTI ATM IV is at 332.40% with IV rank near 87.41%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.