YBIT Collar Strategy
YBIT (YieldMax Bitcoin Option Income Strategy ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on AMEX.
The YieldMax Bitcoin Option Income Strategy ETF (YBIT) is an actively managed investment vehicle that aims to provide investors with consistent weekly income. It achieves this by employing a strategy of writing call options or call spreads on various Bitcoin exchange-traded products (ETPs). The fund's methodology focuses on collecting the premiums generated from these option sales, while also offering a degree of exposure to the potential upside in the share price of BTC-linked ETFs.
YBIT (YieldMax Bitcoin Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $47.3M, a beta of 0.99 versus the broader market, a 52-week range of 17.98-53.65, average daily share volume of 27K, a public-listing history dating back to 2024. These structural characteristics shape how YBIT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places YBIT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. YBIT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on YBIT?
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.
YBIT snapshot
As of August 14, 2026, spot at $17.98, ATM IV 41.20%, IV rank 6.86%, expected move 11.81%. The collar on YBIT below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on YBIT specifically: IV regime affects collar pricing on both sides; compressed YBIT 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 $2.12 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated YBIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on YBIT should anchor to the underlying notional of $17.98 per share and to the trader's directional view on YBIT etf.
YBIT collar setup
The YBIT 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 YBIT at $17.98 on that close, the first option leg uses a $18.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YBIT chain at a 35-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 YBIT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.98 | long |
| Sell 1 | Call | $18.88 | N/A |
| Buy 1 | Put | $17.08 | N/A |
YBIT 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.
YBIT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on YBIT. 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 YBIT
Collars on YBIT hedge an existing long YBIT 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.
YBIT thesis for this collar
The market-implied 1-standard-deviation range for YBIT extends from approximately $15.86 on the downside to $20.10 on the upside. A YBIT collar hedges an existing long YBIT 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 YBIT IV rank near 6.86% 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 YBIT at 41.20%. As a Financial Services name, YBIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YBIT-specific events.
YBIT 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. YBIT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move YBIT alongside the broader basket even when YBIT-specific fundamentals are unchanged. Always rebuild the position from current YBIT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on YBIT?
- A collar on YBIT is the collar strategy applied to YBIT (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 YBIT etf at $17.98 on the most recent close, the strikes shown on this page are snapped to the nearest listed YBIT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are YBIT 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 YBIT 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 YBIT collar?
- The breakeven for the YBIT collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The YBIT market-implied 1-standard-deviation expected move in the same options snapshot 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 YBIT?
- Collars on YBIT hedge an existing long YBIT 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 YBIT implied volatility affect this collar?
- YBIT ATM IV is at 41.20% with IV rank near 6.86%, 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.