WGMI Collar Strategy
WGMI (CoinShares Bitcoin Mining ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on NASDAQ.
The CoinShares Bitcoin Mining ETF (WGMI) is an actively-managed ETF providing investors with the opportunity to gain targeted exposure to the Bitcoin mining industry. WGMI is managed by an expert team from CoinShares Funds LLC dba CoinShares (the “Adviser”), a wholly owned subsidiary of CoinShares International Limited, a leading publicly listed investment management firm specializing in digital assets.
WGMI (CoinShares Bitcoin Mining ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $295.6M, a beta of 4.47 versus the broader market, a 52-week range of 15.82-67.885, average daily share volume of 508K, a public-listing history dating back to 2022. These structural characteristics shape how WGMI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.47 indicates WGMI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. WGMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on WGMI?
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 WGMI snapshot
As of May 15, 2026, spot at $57.66, ATM IV 73.50%, IV rank 15.21%, expected move 21.07%. The collar on WGMI 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 WGMI specifically: IV regime affects collar pricing on both sides; compressed WGMI IV at 73.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.07% (roughly $12.15 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 WGMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WGMI should anchor to the underlying notional of $57.66 per share and to the trader's directional view on WGMI etf.
WGMI collar setup
The WGMI 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 WGMI near $57.66, the first option leg uses a $61.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WGMI 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 WGMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $57.66 | long |
| Sell 1 | Call | $61.00 | $3.55 |
| Buy 1 | Put | $55.00 | $3.75 |
WGMI collar risk and reward
- Net Premium / Debit
- -$5,786.00
- Max Profit (per contract)
- $314.00
- Max Loss (per contract)
- -$286.00
- Breakeven(s)
- $57.86
- Risk / Reward Ratio
- 1.098
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.
WGMI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WGMI. 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% | -$286.00 |
| $12.76 | -77.9% | -$286.00 |
| $25.51 | -55.8% | -$286.00 |
| $38.25 | -33.7% | -$286.00 |
| $51.00 | -11.5% | -$286.00 |
| $63.75 | +10.6% | +$314.00 |
| $76.50 | +32.7% | +$314.00 |
| $89.24 | +54.8% | +$314.00 |
| $101.99 | +76.9% | +$314.00 |
| $114.74 | +99.0% | +$314.00 |
When traders use collar on WGMI
Collars on WGMI hedge an existing long WGMI 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.
WGMI thesis for this collar
The market-implied 1-standard-deviation range for WGMI extends from approximately $45.51 on the downside to $69.81 on the upside. A WGMI collar hedges an existing long WGMI 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 WGMI IV rank near 15.21% 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 WGMI at 73.50%. As a Financial Services name, WGMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WGMI-specific events.
WGMI 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. WGMI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WGMI alongside the broader basket even when WGMI-specific fundamentals are unchanged. Always rebuild the position from current WGMI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WGMI?
- A collar on WGMI is the collar strategy applied to WGMI (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 WGMI etf trading near $57.66, the strikes shown on this page are snapped to the nearest listed WGMI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WGMI 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 WGMI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 73.50%), the computed maximum profit is $314.00 per contract and the computed maximum loss is -$286.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WGMI collar?
- The breakeven for the WGMI collar priced on this page is roughly $57.86 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 WGMI market-implied 1-standard-deviation expected move is approximately 21.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WGMI?
- Collars on WGMI hedge an existing long WGMI 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 WGMI implied volatility affect this collar?
- WGMI ATM IV is at 73.50% with IV rank near 15.21%, 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.