WATS Collar Strategy
WATS (Corgi ETF Trust I - Corgi Battery Energy Storage Systems ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
WATS seeks capital appreciation by actively managing a portfolio of companies materially involved in battery energy storage systems, supporting electric grids, renewable integration, peak demand management, backup power, and electrification. The fund considers companies deriving significant revenue from this theme, spanning battery cells and packs, management systems, power electronics, thermal management, energy software, grid services, project development, and recycling. The fund invests in US and non-US companies of any market cap, using a bottom-up process combining fundamental analysis with thematic and quantitative screening. Other factors include supply chain positioning, growth potential, and valuation. Up to 15% may be allocated to illiquid investments, including passive minority interests in special purpose vehicles (SPVs). The fund may hold cash, cash equivalents, or short-term US Treasuries for liquidity and portfolio management.
WATS (Corgi ETF Trust I - Corgi Battery Energy Storage Systems ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $487,186, a beta of 5.53 versus the broader market, a 52-week range of 18.42-32.27, average daily share volume of 1K, a public-listing history dating back to 2026. These structural characteristics shape how WATS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 5.53 indicates WATS 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 WATS?
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.
WATS snapshot
As of September 29, 2026, spot at $19.87, ATM IV 69.70%, expected move 19.98%. The collar on WATS 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 WATS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for WATS is inferred from ATM IV at 69.70% alone, with a market-implied 1-standard-deviation move of approximately 19.98% (roughly $3.97 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 WATS expiries trade a higher absolute premium for lower per-day decay. Position sizing on WATS should anchor to the underlying notional of $19.87 per share and to the trader's directional view on WATS etf.
WATS collar setup
The WATS 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 WATS at $19.87 on that close, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WATS 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 WATS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $19.87 | long |
| Sell 1 | Call | $21.00 | $2.23 |
| Buy 1 | Put | $19.00 | $2.08 |
WATS collar risk and reward
- Net Premium / Debit
- -$1,972.00
- Max Profit (per contract)
- $128.00
- Max Loss (per contract)
- -$72.00
- Breakeven(s)
- $19.72
- Risk / Reward Ratio
- 1.778
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.
WATS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WATS. 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% | -$72.00 |
| $4.40 | -77.8% | -$72.00 |
| $8.79 | -55.7% | -$72.00 |
| $13.19 | -33.6% | -$72.00 |
| $17.58 | -11.5% | -$72.00 |
| $21.97 | +10.6% | +$128.00 |
| $26.36 | +32.7% | +$128.00 |
| $30.76 | +54.8% | +$128.00 |
| $35.15 | +76.9% | +$128.00 |
| $39.54 | +99.0% | +$128.00 |
When traders use collar on WATS
Collars on WATS hedge an existing long WATS 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.
WATS thesis for this collar
The market-implied 1-standard-deviation range for WATS extends from approximately $15.90 on the downside to $23.84 on the upside. A WATS collar hedges an existing long WATS 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. As a Financial Services name, WATS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WATS-specific events.
WATS 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. WATS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WATS alongside the broader basket even when WATS-specific fundamentals are unchanged. Always rebuild the position from current WATS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WATS?
- A collar on WATS is the collar strategy applied to WATS (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 WATS etf at $19.87 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed WATS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WATS 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 WATS collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 69.70%), the computed maximum profit is $128.00 per contract and the computed maximum loss is -$72.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WATS collar?
- The breakeven for the WATS collar priced on this page is roughly $19.72 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 WATS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WATS?
- Collars on WATS hedge an existing long WATS 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 WATS implied volatility affect this collar?
- Current WATS ATM IV is 69.70%; IV rank context is unavailable in the current snapshot.