XDIV Collar Strategy
XDIV (Roundhill Investments - S&P 500 No Dividend Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The Roundhill S&P 500 No Dividend Target ETF (“XDIV”) seeks to track the total return of the S&P 500 Index without paying distributions. XDIV is an actively-managed ETF.
XDIV (Roundhill Investments - S&P 500 No Dividend Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $13.5M, a beta of 0.95 versus the broader market, a 52-week range of 25.023-30.26, average daily share volume of 22K, a public-listing history dating back to 2025. These structural characteristics shape how XDIV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places XDIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on XDIV?
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 XDIV snapshot
As of May 15, 2026, spot at $30.15, ATM IV 35.10%, IV rank 1.32%, expected move 10.06%. The collar on XDIV 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 XDIV specifically: IV regime affects collar pricing on both sides; compressed XDIV IV at 35.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.06% (roughly $3.03 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 XDIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on XDIV should anchor to the underlying notional of $30.15 per share and to the trader's directional view on XDIV etf.
XDIV collar setup
The XDIV 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 XDIV near $30.15, the first option leg uses a $31.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XDIV 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 XDIV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.15 | long |
| Sell 1 | Call | $31.66 | N/A |
| Buy 1 | Put | $28.64 | N/A |
XDIV collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
XDIV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on XDIV. 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.
When traders use collar on XDIV
Collars on XDIV hedge an existing long XDIV 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.
XDIV thesis for this collar
The market-implied 1-standard-deviation range for XDIV extends from approximately $27.12 on the downside to $33.18 on the upside. A XDIV collar hedges an existing long XDIV 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 XDIV IV rank near 1.32% 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 XDIV at 35.10%. As a Financial Services name, XDIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XDIV-specific events.
XDIV 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. XDIV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XDIV alongside the broader basket even when XDIV-specific fundamentals are unchanged. Always rebuild the position from current XDIV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on XDIV?
- A collar on XDIV is the collar strategy applied to XDIV (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 XDIV etf trading near $30.15, the strikes shown on this page are snapped to the nearest listed XDIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are XDIV 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 XDIV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a XDIV collar?
- The breakeven for the XDIV collar priced on this page is no defined breakeven on the modeled curve 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 XDIV market-implied 1-standard-deviation expected move is approximately 10.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on XDIV?
- Collars on XDIV hedge an existing long XDIV 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 XDIV implied volatility affect this collar?
- XDIV ATM IV is at 35.10% with IV rank near 1.32%, 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.