WTPI Collar Strategy
WTPI (WisdomTree Equity Premium Income Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The WisdomTree Equity Premium Income Fund (Ticker: WTPI) is an exchange-traded fund (ETF) managed by WisdomTree, Inc. The fund seeks to provide investors with consistent income by selling put options bi-weekly on the S&P 500 Index, targeting a 2.5% premium. This strategy aims to capitalize on the volatility premium in the options market, potentially offering attractive income opportunities, especially in flat-to-down market conditions.
WTPI (WisdomTree Equity Premium Income Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $463.3M, a beta of 0.58 versus the broader market, a 52-week range of 31.04-33.92, average daily share volume of 115K, a public-listing history dating back to 2007. These structural characteristics shape how WTPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates WTPI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WTPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on WTPI?
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 WTPI snapshot
As of May 15, 2026, spot at $33.19, ATM IV 44.20%, IV rank 10.54%, expected move 12.67%. The collar on WTPI 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 WTPI specifically: IV regime affects collar pricing on both sides; compressed WTPI IV at 44.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.67% (roughly $4.21 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 WTPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTPI should anchor to the underlying notional of $33.19 per share and to the trader's directional view on WTPI etf.
WTPI collar setup
The WTPI 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 WTPI near $33.19, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTPI 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 WTPI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $33.19 | long |
| Sell 1 | Call | $35.00 | $0.73 |
| Buy 1 | Put | $32.00 | $1.19 |
WTPI collar risk and reward
- Net Premium / Debit
- -$3,365.00
- Max Profit (per contract)
- $135.00
- Max Loss (per contract)
- -$165.00
- Breakeven(s)
- $33.65
- Risk / Reward Ratio
- 0.818
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.
WTPI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WTPI. 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% | -$165.00 |
| $7.35 | -77.9% | -$165.00 |
| $14.68 | -55.8% | -$165.00 |
| $22.02 | -33.6% | -$165.00 |
| $29.36 | -11.5% | -$165.00 |
| $36.70 | +10.6% | +$135.00 |
| $44.03 | +32.7% | +$135.00 |
| $51.37 | +54.8% | +$135.00 |
| $58.71 | +76.9% | +$135.00 |
| $66.05 | +99.0% | +$135.00 |
When traders use collar on WTPI
Collars on WTPI hedge an existing long WTPI 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.
WTPI thesis for this collar
The market-implied 1-standard-deviation range for WTPI extends from approximately $28.98 on the downside to $37.40 on the upside. A WTPI collar hedges an existing long WTPI 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 WTPI IV rank near 10.54% 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 WTPI at 44.20%. As a Financial Services name, WTPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTPI-specific events.
WTPI 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. WTPI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WTPI alongside the broader basket even when WTPI-specific fundamentals are unchanged. Always rebuild the position from current WTPI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WTPI?
- A collar on WTPI is the collar strategy applied to WTPI (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 WTPI etf trading near $33.19, the strikes shown on this page are snapped to the nearest listed WTPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WTPI 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 WTPI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 44.20%), the computed maximum profit is $135.00 per contract and the computed maximum loss is -$165.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WTPI collar?
- The breakeven for the WTPI collar priced on this page is roughly $33.65 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 WTPI market-implied 1-standard-deviation expected move is approximately 12.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WTPI?
- Collars on WTPI hedge an existing long WTPI 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 WTPI implied volatility affect this collar?
- WTPI ATM IV is at 44.20% with IV rank near 10.54%, 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.