STPZ Collar Strategy
STPZ (PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Fund seeks to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch 1-5 Year US Inflation-Linked Treasury IndexSM
STPZ (PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $478.3M, a beta of 0.28 versus the broader market, a 52-week range of 53.25-54.58, average daily share volume of 47K, a public-listing history dating back to 2009. These structural characteristics shape how STPZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.28 indicates STPZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. STPZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on STPZ?
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 STPZ snapshot
As of May 15, 2026, spot at $54.05, ATM IV 76.20%, IV rank 14.78%, expected move 1.35%. The collar on STPZ 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 STPZ specifically: IV regime affects collar pricing on both sides; compressed STPZ IV at 76.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 1.35% (roughly $0.73 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 STPZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on STPZ should anchor to the underlying notional of $54.05 per share and to the trader's directional view on STPZ etf.
STPZ collar setup
The STPZ 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 STPZ near $54.05, the first option leg uses a $56.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STPZ 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 STPZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $54.05 | long |
| Sell 1 | Call | $56.75 | N/A |
| Buy 1 | Put | $51.35 | N/A |
STPZ 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.
STPZ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on STPZ. 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 STPZ
Collars on STPZ hedge an existing long STPZ 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.
STPZ thesis for this collar
The market-implied 1-standard-deviation range for STPZ extends from approximately $53.32 on the downside to $54.78 on the upside. A STPZ collar hedges an existing long STPZ 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 STPZ IV rank near 14.78% 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 STPZ at 76.20%. As a Financial Services name, STPZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STPZ-specific events.
STPZ 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. STPZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STPZ alongside the broader basket even when STPZ-specific fundamentals are unchanged. Always rebuild the position from current STPZ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on STPZ?
- A collar on STPZ is the collar strategy applied to STPZ (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 STPZ etf trading near $54.05, the strikes shown on this page are snapped to the nearest listed STPZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STPZ 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 STPZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 76.20%), 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 STPZ collar?
- The breakeven for the STPZ 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 STPZ market-implied 1-standard-deviation expected move is approximately 1.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on STPZ?
- Collars on STPZ hedge an existing long STPZ 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 STPZ implied volatility affect this collar?
- STPZ ATM IV is at 76.20% with IV rank near 14.78%, 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.