How are WMTI 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 WMTI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 10.00%), the computed maximum profit is $95.00 per contract and the computed maximum loss is -$205.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WMTI collar?

The breakeven for the WMTI collar priced on this page is roughly $22.05 at expiration, derived from the August 14, 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 WMTI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 2.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WMTI implied volatility affect this collar?

WMTI ATM IV is at 10.00% with IV rank near 0.41%, 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.

WMTI Collar Strategy

WMTI (REX WMT Growth & Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.

Under typical market circumstances, this exchange-traded fund (ETF) allocates a minimum of 80% of its total capital (inclusive of borrowed funds) to investments directly in WMT stock, instruments providing exposure to WMT, or securities designed to yield income from WMT-related positions. Its principal strategy for achieving this notional WMT exposure involves utilizing various options contracts on WMT, encompassing both conventional exchange-traded options and customizable Flexible EXchange® (FLEX) Options. Investors should be aware that this fund is classified as non-diversified.

WMTI (REX WMT Growth & Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $10.1M, a beta of 0.28 versus the broader market, a 52-week range of 20.13-30.34, average daily share volume of 35K, a public-listing history dating back to 2025. These structural characteristics shape how WMTI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.28 indicates WMTI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WMTI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on WMTI?

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.

WMTI snapshot

As of August 14, 2026, spot at $21.55, ATM IV 10.00%, IV rank 0.41%, expected move 2.87%. The collar on WMTI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 126-day expiry.

Why this collar structure on WMTI specifically: IV regime affects collar pricing on both sides; compressed WMTI IV at 10.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 2.87% (roughly $0.62 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WMTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WMTI should anchor to the underlying notional of $21.55 per share and to the trader's directional view on WMTI etf.

WMTI collar setup

The WMTI collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WMTI at $21.55 on that close, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WMTI chain at a 126-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 WMTI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$21.55	long
Sell 1	Call	$23.00	$0.60
Buy 1	Put	$20.00	$1.10

WMTI collar risk and reward

Net Premium / Debit: -$2,205.00
Max Profit (per contract): $95.00
Max Loss (per contract): -$205.00
Breakeven(s): $22.05
Risk / Reward Ratio: 0.463

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.

WMTI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on WMTI. 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%	-$205.00
$4.77	-77.8%	-$205.00
$9.54	-55.7%	-$205.00
$14.30	-33.6%	-$205.00
$19.06	-11.5%	-$205.00
$23.83	+10.6%	+$95.00
$28.59	+32.7%	+$95.00
$33.36	+54.8%	+$95.00
$38.12	+76.9%	+$95.00
$42.88	+99.0%	+$95.00

When traders use collar on WMTI

Collars on WMTI hedge an existing long WMTI 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.

WMTI thesis for this collar

The market-implied 1-standard-deviation range for WMTI extends from approximately $20.93 on the downside to $22.17 on the upside. A WMTI collar hedges an existing long WMTI 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 WMTI IV rank near 0.41% 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 WMTI at 10.00%. As a Financial Services name, WMTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WMTI-specific events.

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

Frequently asked questions

What is a collar on WMTI?: A collar on WMTI is the collar strategy applied to WMTI (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 WMTI etf at $21.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WMTI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are WMTI 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 WMTI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 10.00%), the computed maximum profit is $95.00 per contract and the computed maximum loss is -$205.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WMTI collar?: The breakeven for the WMTI collar priced on this page is roughly $22.05 at expiration, derived from the August 14, 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 WMTI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 2.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on WMTI?: Collars on WMTI hedge an existing long WMTI 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 WMTI implied volatility affect this collar?: WMTI ATM IV is at 10.00% with IV rank near 0.41%, 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.