WANT Collar Strategy
WANT (Direxion Daily Consumer Discretionary Bull 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily Consumer Discretionary Bull 3X ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the Consumer Discretionary Select Sector Index. There is no guarantee the fund will achieve its stated investment objective.
WANT (Direxion Daily Consumer Discretionary Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $20.6M, a beta of 3.77 versus the broader market, a 52-week range of 32.741-57.269, average daily share volume of 37K, a public-listing history dating back to 2018. These structural characteristics shape how WANT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.77 indicates WANT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. WANT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on WANT?
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 WANT snapshot
As of May 15, 2026, spot at $43.28, ATM IV 62.90%, IV rank 17.02%, expected move 18.03%. The collar on WANT 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 WANT specifically: IV regime affects collar pricing on both sides; compressed WANT IV at 62.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.03% (roughly $7.80 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 WANT expiries trade a higher absolute premium for lower per-day decay. Position sizing on WANT should anchor to the underlying notional of $43.28 per share and to the trader's directional view on WANT etf.
WANT collar setup
The WANT 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 WANT near $43.28, the first option leg uses a $45.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WANT 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 WANT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $43.28 | long |
| Sell 1 | Call | $45.00 | $2.90 |
| Buy 1 | Put | $41.00 | $2.35 |
WANT collar risk and reward
- Net Premium / Debit
- -$4,273.00
- Max Profit (per contract)
- $227.00
- Max Loss (per contract)
- -$173.00
- Breakeven(s)
- $42.73
- Risk / Reward Ratio
- 1.312
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.
WANT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WANT. 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% | -$173.00 |
| $9.58 | -77.9% | -$173.00 |
| $19.15 | -55.8% | -$173.00 |
| $28.72 | -33.7% | -$173.00 |
| $38.28 | -11.5% | -$173.00 |
| $47.85 | +10.6% | +$227.00 |
| $57.42 | +32.7% | +$227.00 |
| $66.99 | +54.8% | +$227.00 |
| $76.56 | +76.9% | +$227.00 |
| $86.13 | +99.0% | +$227.00 |
When traders use collar on WANT
Collars on WANT hedge an existing long WANT 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.
WANT thesis for this collar
The market-implied 1-standard-deviation range for WANT extends from approximately $35.48 on the downside to $51.08 on the upside. A WANT collar hedges an existing long WANT 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 WANT IV rank near 17.02% 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 WANT at 62.90%. As a Financial Services name, WANT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WANT-specific events.
WANT 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. WANT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WANT alongside the broader basket even when WANT-specific fundamentals are unchanged. Always rebuild the position from current WANT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WANT?
- A collar on WANT is the collar strategy applied to WANT (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 WANT etf trading near $43.28, the strikes shown on this page are snapped to the nearest listed WANT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WANT 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 WANT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 62.90%), the computed maximum profit is $227.00 per contract and the computed maximum loss is -$173.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WANT collar?
- The breakeven for the WANT collar priced on this page is roughly $42.73 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 WANT market-implied 1-standard-deviation expected move is approximately 18.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WANT?
- Collars on WANT hedge an existing long WANT 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 WANT implied volatility affect this collar?
- WANT ATM IV is at 62.90% with IV rank near 17.02%, 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.