XRMI Collar Strategy
XRMI (Global X - S&P 500 Risk Managed Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.
The Global X S&P 500 Risk Managed Income ETF (XRMI) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe S&P 500 Risk Managed Income Index.
XRMI (Global X - S&P 500 Risk Managed Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $49.0M, a beta of 0.35 versus the broader market, a 52-week range of 16.73-18.08, average daily share volume of 19K, a public-listing history dating back to 2021. These structural characteristics shape how XRMI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.35 indicates XRMI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. XRMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on XRMI?
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 XRMI snapshot
As of May 15, 2026, spot at $17.31, ATM IV 41.20%, IV rank 29.04%, expected move 11.81%. The collar on XRMI 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 XRMI specifically: IV regime affects collar pricing on both sides; compressed XRMI IV at 41.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.81% (roughly $2.04 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 XRMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on XRMI should anchor to the underlying notional of $17.31 per share and to the trader's directional view on XRMI etf.
XRMI collar setup
The XRMI 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 XRMI near $17.31, the first option leg uses a $18.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XRMI 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 XRMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.31 | long |
| Sell 1 | Call | $18.18 | N/A |
| Buy 1 | Put | $16.44 | N/A |
XRMI 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.
XRMI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on XRMI. 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 XRMI
Collars on XRMI hedge an existing long XRMI 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.
XRMI thesis for this collar
The market-implied 1-standard-deviation range for XRMI extends from approximately $15.27 on the downside to $19.35 on the upside. A XRMI collar hedges an existing long XRMI 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 XRMI IV rank near 29.04% 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 XRMI at 41.20%. As a Financial Services name, XRMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XRMI-specific events.
XRMI 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. XRMI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XRMI alongside the broader basket even when XRMI-specific fundamentals are unchanged. Always rebuild the position from current XRMI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on XRMI?
- A collar on XRMI is the collar strategy applied to XRMI (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 XRMI etf trading near $17.31, the strikes shown on this page are snapped to the nearest listed XRMI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are XRMI 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 XRMI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 41.20%), 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 XRMI collar?
- The breakeven for the XRMI 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 XRMI market-implied 1-standard-deviation expected move is approximately 11.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on XRMI?
- Collars on XRMI hedge an existing long XRMI 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 XRMI implied volatility affect this collar?
- XRMI ATM IV is at 41.20% with IV rank near 29.04%, 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.