WTV Collar Strategy
WTV (WisdomTree U.S. Value Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund, an exchange traded fund, is actively managed using a model-based approach. It seeks to achieve its investment objective by investing primarily in U.S. equity securities that provide a high "total shareholder yield" and exhibit favorable quality characteristics that demonstrate a company's profitability, such as strong ROE and/or ROA. The fund invests primarily in equity securities of companies domiciled in the U.S. or listed on a U.S. exchange. The advisor generally expects to invest in large- and mid-capitalization companies and may invest in any sector. The fund is non-diversified.
WTV (WisdomTree U.S. Value Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.75B, a beta of 0.92 versus the broader market, a 52-week range of 82-101.23, average daily share volume of 261K, a public-listing history dating back to 2007. These structural characteristics shape how WTV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places WTV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WTV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on WTV?
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 WTV snapshot
As of May 15, 2026, spot at $99.04, ATM IV 17.50%, IV rank 11.18%, expected move 5.02%. The collar on WTV 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 98-day expiry.
Why this collar structure on WTV specifically: IV regime affects collar pricing on both sides; compressed WTV IV at 17.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.02% (roughly $4.97 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WTV expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTV should anchor to the underlying notional of $99.04 per share and to the trader's directional view on WTV etf.
WTV collar setup
The WTV 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 WTV near $99.04, the first option leg uses a $104.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTV chain at a 98-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 WTV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $99.04 | long |
| Sell 1 | Call | $104.00 | $1.95 |
| Buy 1 | Put | $94.00 | $1.68 |
WTV collar risk and reward
- Net Premium / Debit
- -$9,877.00
- Max Profit (per contract)
- $523.00
- Max Loss (per contract)
- -$477.00
- Breakeven(s)
- $98.77
- Risk / Reward Ratio
- 1.096
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.
WTV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WTV. 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% | -$477.00 |
| $21.91 | -77.9% | -$477.00 |
| $43.80 | -55.8% | -$477.00 |
| $65.70 | -33.7% | -$477.00 |
| $87.60 | -11.6% | -$477.00 |
| $109.50 | +10.6% | +$523.00 |
| $131.39 | +32.7% | +$523.00 |
| $153.29 | +54.8% | +$523.00 |
| $175.19 | +76.9% | +$523.00 |
| $197.08 | +99.0% | +$523.00 |
When traders use collar on WTV
Collars on WTV hedge an existing long WTV 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.
WTV thesis for this collar
The market-implied 1-standard-deviation range for WTV extends from approximately $94.07 on the downside to $104.01 on the upside. A WTV collar hedges an existing long WTV 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 WTV IV rank near 11.18% 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 WTV at 17.50%. As a Financial Services name, WTV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTV-specific events.
WTV 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. WTV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WTV alongside the broader basket even when WTV-specific fundamentals are unchanged. Always rebuild the position from current WTV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WTV?
- A collar on WTV is the collar strategy applied to WTV (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 WTV etf trading near $99.04, the strikes shown on this page are snapped to the nearest listed WTV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WTV 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 WTV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 17.50%), the computed maximum profit is $523.00 per contract and the computed maximum loss is -$477.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WTV collar?
- The breakeven for the WTV collar priced on this page is roughly $98.77 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 WTV market-implied 1-standard-deviation expected move is approximately 5.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WTV?
- Collars on WTV hedge an existing long WTV 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 WTV implied volatility affect this collar?
- WTV ATM IV is at 17.50% with IV rank near 11.18%, 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.