How are TSYW 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 TSYW collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 17.60%), the computed maximum profit is $207.00 per contract and the computed maximum loss is -$193.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TSYW collar?

The breakeven for the TSYW collar priced on this page is roughly $37.93 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TSYW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TSYW implied volatility affect this collar?

TSYW ATM IV is at 17.60% with IV rank near 12.28%, 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.

TSYW Collar Strategy

TSYW (Roundhill ETF Trust - Roundhill Treasury Bond Weeklypay ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

TSYW seeks to pair weekly income distributions with leveraged weekly performance linked to a long-term Treasury bond ETF. The fund implements this through a combination of total return swaps referencing the ETF and direct ETF holdings, supported by short-term Treasuries and cash for collateral. Its leverage target resets to 120 percent each calendar week, allowing the fund to maintain consistent weekly exposure rather than magnifying daily moves. Weekly distributions are determined by a formula incorporating recent benchmark performance and implied volatility, and a substantial portion may be classified as return of capital. When the benchmark rises over a calendar week, TSYW aims to capture proportionally larger gains, while declines result in correspondingly larger losses. The strategy maintains exposure regardless of market direction and can exhibit heightened volatility due to its weekly leverage structure.

TSYW (Roundhill ETF Trust - Roundhill Treasury Bond Weeklypay ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.7M, a beta of 0.13 versus the broader market, a 52-week range of 37.98-50.161, average daily share volume of 3K, a public-listing history dating back to 2025. These structural characteristics shape how TSYW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.13 indicates TSYW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TSYW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on TSYW?

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.

TSYW snapshot

As of September 29, 2026, spot at $38.23, ATM IV 17.60%, IV rank 12.28%, expected move 5.05%. The collar on TSYW below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.

Why this collar structure on TSYW specifically: IV regime affects collar pricing on both sides; compressed TSYW IV at 17.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.05% (roughly $1.93 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TSYW expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSYW should anchor to the underlying notional of $38.23 per share and to the trader's directional view on TSYW etf.

TSYW collar setup

The TSYW collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TSYW at $38.23 on that close, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSYW chain at a 80-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 TSYW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$38.23	long
Sell 1	Call	$40.00	$0.88
Buy 1	Put	$36.00	$0.58

TSYW collar risk and reward

Net Premium / Debit: -$3,793.00
Max Profit (per contract): $207.00
Max Loss (per contract): -$193.00
Breakeven(s): $37.93
Risk / Reward Ratio: 1.073

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.

TSYW collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on TSYW. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$193.00
$8.46	-77.9%	-$193.00
$16.91	-55.8%	-$193.00
$25.37	-33.7%	-$193.00
$33.82	-11.5%	-$193.00
$42.27	+10.6%	+$207.00
$50.72	+32.7%	+$207.00
$59.17	+54.8%	+$207.00
$67.62	+76.9%	+$207.00
$76.08	+99.0%	+$207.00

When traders use collar on TSYW

Collars on TSYW hedge an existing long TSYW 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.

TSYW thesis for this collar

The market-implied 1-standard-deviation range for TSYW extends from approximately $36.30 on the downside to $40.16 on the upside. A TSYW collar hedges an existing long TSYW 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 TSYW IV rank near 12.28% 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 TSYW at 17.60%. As a Financial Services name, TSYW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSYW-specific events.

TSYW 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. TSYW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSYW alongside the broader basket even when TSYW-specific fundamentals are unchanged. Always rebuild the position from current TSYW chain quotes before placing a trade.

Frequently asked questions

What is a collar on TSYW?: A collar on TSYW is the collar strategy applied to TSYW (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 TSYW etf at $38.23 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed TSYW chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TSYW 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 TSYW collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 17.60%), the computed maximum profit is $207.00 per contract and the computed maximum loss is -$193.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TSYW collar?: The breakeven for the TSYW collar priced on this page is roughly $37.93 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TSYW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on TSYW?: Collars on TSYW hedge an existing long TSYW 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 TSYW implied volatility affect this collar?: TSYW ATM IV is at 17.60% with IV rank near 12.28%, 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.