WOOD Collar Strategy
WOOD (iShares Global Timber & Forestry ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
The iShares Global Timber & Forestry ETF seeks to track the investment results of an index composed of global equities in or related to the timber and forestry industry.
WOOD (iShares Global Timber & Forestry ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $247.9M, a beta of 0.79 versus the broader market, a 52-week range of 66.65-83.32, average daily share volume of 33K, a public-listing history dating back to 2008. These structural characteristics shape how WOOD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places WOOD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WOOD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on WOOD?
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 WOOD snapshot
As of May 15, 2026, spot at $65.53, ATM IV 33.00%, IV rank 5.08%, expected move 9.46%. The collar on WOOD 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 WOOD specifically: IV regime affects collar pricing on both sides; compressed WOOD IV at 33.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.46% (roughly $6.20 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 WOOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on WOOD should anchor to the underlying notional of $65.53 per share and to the trader's directional view on WOOD etf.
WOOD collar setup
The WOOD 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 WOOD near $65.53, the first option leg uses a $69.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WOOD 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 WOOD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $65.53 | long |
| Sell 1 | Call | $69.00 | $0.86 |
| Buy 1 | Put | $62.00 | $2.50 |
WOOD collar risk and reward
- Net Premium / Debit
- -$6,717.00
- Max Profit (per contract)
- $183.00
- Max Loss (per contract)
- -$517.00
- Breakeven(s)
- $67.17
- Risk / Reward Ratio
- 0.354
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.
WOOD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WOOD. 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% | -$517.00 |
| $14.50 | -77.9% | -$517.00 |
| $28.99 | -55.8% | -$517.00 |
| $43.47 | -33.7% | -$517.00 |
| $57.96 | -11.5% | -$517.00 |
| $72.45 | +10.6% | +$183.00 |
| $86.94 | +32.7% | +$183.00 |
| $101.43 | +54.8% | +$183.00 |
| $115.91 | +76.9% | +$183.00 |
| $130.40 | +99.0% | +$183.00 |
When traders use collar on WOOD
Collars on WOOD hedge an existing long WOOD 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.
WOOD thesis for this collar
The market-implied 1-standard-deviation range for WOOD extends from approximately $59.33 on the downside to $71.73 on the upside. A WOOD collar hedges an existing long WOOD 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 WOOD IV rank near 5.08% 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 WOOD at 33.00%. As a Financial Services name, WOOD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WOOD-specific events.
WOOD 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. WOOD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WOOD alongside the broader basket even when WOOD-specific fundamentals are unchanged. Always rebuild the position from current WOOD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WOOD?
- A collar on WOOD is the collar strategy applied to WOOD (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 WOOD etf trading near $65.53, the strikes shown on this page are snapped to the nearest listed WOOD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WOOD 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 WOOD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is $183.00 per contract and the computed maximum loss is -$517.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WOOD collar?
- The breakeven for the WOOD collar priced on this page is roughly $67.17 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 WOOD market-implied 1-standard-deviation expected move is approximately 9.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WOOD?
- Collars on WOOD hedge an existing long WOOD 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 WOOD implied volatility affect this collar?
- WOOD ATM IV is at 33.00% with IV rank near 5.08%, 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.