TSLW Collar Strategy
TSLW (Roundhill Investments - TSLA WeeklyPay ETF), in the Financial Services sector, (Financial - Capital Markets industry), listed on CBOE.
The Roundhill TSLA WeeklyPay ETF (“TSLW”) is designed for investors seeking a combination of income and growth potential. TSLW aims to provide weekly distributions and calendar week returns, before fees and expenses, equal to 1.2 times (120%) the calendar week total return of Tesla common shares (Nasdaq: TSLA). TSLW is an actively-managed ETF.
TSLW (Roundhill Investments - TSLA WeeklyPay ETF) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $66.9M, a beta of 1.41 versus the broader market, a 52-week range of 20.675-43.59, average daily share volume of 147K, a public-listing history dating back to 2025. These structural characteristics shape how TSLW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates TSLW has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TSLW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TSLW?
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 TSLW snapshot
As of May 15, 2026, spot at $25.90, ATM IV 73.10%, IV rank 10.22%, expected move 20.96%. The collar on TSLW 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 TSLW specifically: IV regime affects collar pricing on both sides; compressed TSLW IV at 73.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.96% (roughly $5.43 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 TSLW expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLW should anchor to the underlying notional of $25.90 per share and to the trader's directional view on TSLW etf.
TSLW collar setup
The TSLW 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 TSLW near $25.90, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSLW 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 TSLW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.90 | long |
| Sell 1 | Call | $27.00 | $1.23 |
| Buy 1 | Put | $25.00 | $2.40 |
TSLW collar risk and reward
- Net Premium / Debit
- -$2,707.50
- Max Profit (per contract)
- -$7.50
- Max Loss (per contract)
- -$207.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- -0.036
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.
TSLW collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TSLW. 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% | -$207.50 |
| $5.74 | -77.9% | -$207.50 |
| $11.46 | -55.7% | -$207.50 |
| $17.19 | -33.6% | -$207.50 |
| $22.91 | -11.5% | -$207.50 |
| $28.64 | +10.6% | -$7.50 |
| $34.36 | +32.7% | -$7.50 |
| $40.09 | +54.8% | -$7.50 |
| $45.81 | +76.9% | -$7.50 |
| $51.54 | +99.0% | -$7.50 |
When traders use collar on TSLW
Collars on TSLW hedge an existing long TSLW 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.
TSLW thesis for this collar
The market-implied 1-standard-deviation range for TSLW extends from approximately $20.47 on the downside to $31.33 on the upside. A TSLW collar hedges an existing long TSLW 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 TSLW IV rank near 10.22% 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 TSLW at 73.10%. As a Financial Services name, TSLW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSLW-specific events.
TSLW 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. TSLW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSLW alongside the broader basket even when TSLW-specific fundamentals are unchanged. Always rebuild the position from current TSLW chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TSLW?
- A collar on TSLW is the collar strategy applied to TSLW (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 TSLW etf trading near $25.90, the strikes shown on this page are snapped to the nearest listed TSLW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSLW 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 TSLW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 73.10%), the computed maximum profit is -$7.50 per contract and the computed maximum loss is -$207.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLW collar?
- The breakeven for the TSLW 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 TSLW market-implied 1-standard-deviation expected move is approximately 20.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TSLW?
- Collars on TSLW hedge an existing long TSLW 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 TSLW implied volatility affect this collar?
- TSLW ATM IV is at 73.10% with IV rank near 10.22%, 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.