WCBR Collar Strategy
WCBR (WisdomTree Cybersecurity Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The index is designed to provide exposure to equity securities of exchange-listed companies globally, which are primarily involved in cybersecurity and security-oriented technology that generate a meaningful part of their revenue from cybersecurity activities and are experiencing revenue growth. To the extent the index concentrates in the securities of a particular industry or group of industries, the fund will concentrate its investments to approximately the same extent as the index. It is non-diversified.
WCBR (WisdomTree Cybersecurity Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $139.3M, a beta of 0.69 versus the broader market, a 52-week range of 22.49-32.71, average daily share volume of 39K, a public-listing history dating back to 2021. These structural characteristics shape how WCBR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.69 indicates WCBR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WCBR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on WCBR?
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 WCBR snapshot
As of May 15, 2026, spot at $29.82, ATM IV 31.70%, IV rank 26.33%, expected move 9.09%. The collar on WCBR 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 63-day expiry.
Why this collar structure on WCBR specifically: IV regime affects collar pricing on both sides; compressed WCBR IV at 31.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.09% (roughly $2.71 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WCBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on WCBR should anchor to the underlying notional of $29.82 per share and to the trader's directional view on WCBR etf.
WCBR collar setup
The WCBR 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 WCBR near $29.82, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WCBR chain at a 63-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 WCBR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $29.82 | long |
| Sell 1 | Call | $31.00 | $1.68 |
| Buy 1 | Put | $28.00 | $1.05 |
WCBR collar risk and reward
- Net Premium / Debit
- -$2,919.50
- Max Profit (per contract)
- $180.50
- Max Loss (per contract)
- -$119.50
- Breakeven(s)
- $29.20
- Risk / Reward Ratio
- 1.510
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.
WCBR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WCBR. 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% | -$119.50 |
| $6.60 | -77.9% | -$119.50 |
| $13.19 | -55.8% | -$119.50 |
| $19.79 | -33.6% | -$119.50 |
| $26.38 | -11.5% | -$119.50 |
| $32.97 | +10.6% | +$180.50 |
| $39.56 | +32.7% | +$180.50 |
| $46.16 | +54.8% | +$180.50 |
| $52.75 | +76.9% | +$180.50 |
| $59.34 | +99.0% | +$180.50 |
When traders use collar on WCBR
Collars on WCBR hedge an existing long WCBR 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.
WCBR thesis for this collar
The market-implied 1-standard-deviation range for WCBR extends from approximately $27.11 on the downside to $32.53 on the upside. A WCBR collar hedges an existing long WCBR 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 WCBR IV rank near 26.33% 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 WCBR at 31.70%. As a Financial Services name, WCBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WCBR-specific events.
WCBR 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. WCBR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WCBR alongside the broader basket even when WCBR-specific fundamentals are unchanged. Always rebuild the position from current WCBR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WCBR?
- A collar on WCBR is the collar strategy applied to WCBR (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 WCBR etf trading near $29.82, the strikes shown on this page are snapped to the nearest listed WCBR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WCBR 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 WCBR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 31.70%), the computed maximum profit is $180.50 per contract and the computed maximum loss is -$119.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WCBR collar?
- The breakeven for the WCBR collar priced on this page is roughly $29.20 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 WCBR market-implied 1-standard-deviation expected move is approximately 9.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WCBR?
- Collars on WCBR hedge an existing long WCBR 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 WCBR implied volatility affect this collar?
- WCBR ATM IV is at 31.70% with IV rank near 26.33%, 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.