SVIX Collar Strategy
SVIX (-1x Short VIX Futures ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
The index measures the daily inverse performance of a portfolio of first and second month VIX futures contracts. This theoretical portfolio is rolled each day to maintain a consistent time to maturity of the futures contracts. The index is calculated daily at 4:00 p.m. (Eastern time) and at a value calculated from the average price for the futures contracts between 3:45 p.m. (Eastern time) and 4:00 p.m. (Eastern time).
SVIX (-1x Short VIX Futures ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $163.9M, a beta of 3.15 versus the broader market, a 52-week range of 13.03-25.045, average daily share volume of 6.3M, a public-listing history dating back to 2022. These structural characteristics shape how SVIX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.15 indicates SVIX 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 SVIX?
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 SVIX snapshot
As of May 15, 2026, spot at $19.51, ATM IV 50.74%, IV rank 30.81%, expected move 14.55%. The collar on SVIX 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 28-day expiry.
Why this collar structure on SVIX specifically: IV regime affects collar pricing on both sides; mid-range SVIX IV at 50.74% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.55% (roughly $2.84 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SVIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SVIX should anchor to the underlying notional of $19.51 per share and to the trader's directional view on SVIX etf.
SVIX collar setup
The SVIX 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 SVIX near $19.51, the first option leg uses a $20.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SVIX chain at a 28-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 SVIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $19.51 | long |
| Sell 1 | Call | $20.50 | $0.35 |
| Buy 1 | Put | $18.50 | $0.78 |
SVIX collar risk and reward
- Net Premium / Debit
- -$1,993.50
- Max Profit (per contract)
- $56.50
- Max Loss (per contract)
- -$143.50
- Breakeven(s)
- $19.94
- Risk / Reward Ratio
- 0.394
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.
SVIX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SVIX. 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 | -99.9% | -$143.50 |
| $4.32 | -77.8% | -$143.50 |
| $8.64 | -55.7% | -$143.50 |
| $12.95 | -33.6% | -$143.50 |
| $17.26 | -11.5% | -$143.50 |
| $21.57 | +10.6% | +$56.50 |
| $25.89 | +32.7% | +$56.50 |
| $30.20 | +54.8% | +$56.50 |
| $34.51 | +76.9% | +$56.50 |
| $38.82 | +99.0% | +$56.50 |
When traders use collar on SVIX
Collars on SVIX hedge an existing long SVIX 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.
SVIX thesis for this collar
The market-implied 1-standard-deviation range for SVIX extends from approximately $16.67 on the downside to $22.35 on the upside. A SVIX collar hedges an existing long SVIX 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 SVIX IV rank near 30.81% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SVIX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SVIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SVIX-specific events.
SVIX 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. SVIX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SVIX alongside the broader basket even when SVIX-specific fundamentals are unchanged. Always rebuild the position from current SVIX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SVIX?
- A collar on SVIX is the collar strategy applied to SVIX (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 SVIX etf trading near $19.51, the strikes shown on this page are snapped to the nearest listed SVIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SVIX 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 SVIX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.74%), the computed maximum profit is $56.50 per contract and the computed maximum loss is -$143.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SVIX collar?
- The breakeven for the SVIX collar priced on this page is roughly $19.94 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 SVIX market-implied 1-standard-deviation expected move is approximately 14.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SVIX?
- Collars on SVIX hedge an existing long SVIX 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 SVIX implied volatility affect this collar?
- SVIX ATM IV is at 50.74% with IV rank near 30.81%, 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.