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 20.90%), the computed maximum profit is $543.00 per contract and the computed maximum loss is -$457.00 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 $101.57 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 5.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WTV implied volatility affect this collar?

WTV ATM IV is at 20.90% with IV rank near 23.73%, 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.

WTV Collar Strategy

WTV (WisdomTree U.S. Value Fund), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

This actively managed, model-driven exchange-traded fund (ETF) aims to achieve its investment goals by primarily allocating capital to U.S. equity securities. It focuses on companies demonstrating high 'total shareholder yield' alongside robust profitability metrics, such as strong return on equity (ROE) and/or return on assets (ROA). The portfolio predominantly features stocks from businesses either based in the U.S. or listed on an American exchange. While typically concentrating on large- and mid-capitalization firms, the fund retains the flexibility to invest across all sectors. It is classified as a non-diversified fund.

WTV (WisdomTree U.S. Value Fund) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $2.99B, a beta of 0.90 versus the broader market, a 52-week range of 84.62-104.43, average daily share volume of 171K, 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 0.90 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 June 30, 2026, spot at $101.78, ATM IV 20.90%, IV rank 23.73%, expected move 5.99%. 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 52-day expiry.

Why this collar structure on WTV specifically: IV regime affects collar pricing on both sides; compressed WTV IV at 20.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.99% (roughly $6.10 on the underlying). The 52-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 $101.78 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 $101.78, the first option leg uses a $107.00 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 52-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	$101.78	long
Sell 1	Call	$107.00	$0.81
Buy 1	Put	$97.00	$0.60

WTV collar risk and reward

Net Premium / Debit: -$10,157.00
Max Profit (per contract): $543.00
Max Loss (per contract): -$457.00
Breakeven(s): $101.57
Risk / Reward Ratio: 1.188

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.

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%	-$457.00
$22.51	-77.9%	-$457.00
$45.02	-55.8%	-$457.00
$67.52	-33.7%	-$457.00
$90.02	-11.6%	-$457.00
$112.53	+10.6%	+$543.00
$135.03	+32.7%	+$543.00
$157.53	+54.8%	+$543.00
$180.03	+76.9%	+$543.00
$202.54	+99.0%	+$543.00

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 $95.68 on the downside to $107.88 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 23.73% 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 20.90%. 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 $101.78, 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 20.90%), the computed maximum profit is $543.00 per contract and the computed maximum loss is -$457.00 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 $101.57 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 5.99%; 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 20.90% with IV rank near 23.73%, 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.