YBTC Collar Strategy
YBTC (Roundhill Investments - Bitcoin Covered Call Strategy ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on CBOE.
The Roundhill Bitcoin Covered Call Strategy ETF (YBTC) is notable as the pioneering U.S.-listed ETF to offer a bitcoin covered call strategy. This actively managed fund provides access to bitcoin through investments in exchange-traded products (ETPs) that hold the cryptocurrency directly, albeit with an imposed limit. A core objective of YBTC is to generate potential current income for its investors.
YBTC (Roundhill Investments - Bitcoin Covered Call Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $150.2M, a beta of 0.98 versus the broader market, a 52-week range of 16.3-49.8, average daily share volume of 99K, a public-listing history dating back to 2024. These structural characteristics shape how YBTC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places YBTC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. YBTC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on YBTC?
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 YBTC snapshot
As of June 30, 2026, spot at $16.50, ATM IV 73.00%, IV rank 14.61%, expected move 20.93%. The collar on YBTC 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 80-day expiry.
Why this collar structure on YBTC specifically: IV regime affects collar pricing on both sides; compressed YBTC IV at 73.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.93% (roughly $3.45 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated YBTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on YBTC should anchor to the underlying notional of $16.50 per share and to the trader's directional view on YBTC etf.
YBTC collar setup
The YBTC 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 YBTC near $16.50, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YBTC chain at a 80-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 YBTC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.50 | long |
| Sell 1 | Call | $17.00 | $0.89 |
| Buy 1 | Put | $16.00 | $0.75 |
YBTC collar risk and reward
- Net Premium / Debit
- -$1,636.00
- Max Profit (per contract)
- $64.00
- Max Loss (per contract)
- -$36.00
- Breakeven(s)
- $16.36
- Risk / Reward Ratio
- 1.778
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.
YBTC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on YBTC. 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 | -99.9% | -$36.00 |
| $3.66 | -77.8% | -$36.00 |
| $7.30 | -55.7% | -$36.00 |
| $10.95 | -33.6% | -$36.00 |
| $14.60 | -11.5% | -$36.00 |
| $18.25 | +10.6% | +$64.00 |
| $21.89 | +32.7% | +$64.00 |
| $25.54 | +54.8% | +$64.00 |
| $29.19 | +76.9% | +$64.00 |
| $32.83 | +99.0% | +$64.00 |
When traders use collar on YBTC
Collars on YBTC hedge an existing long YBTC 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.
YBTC thesis for this collar
The market-implied 1-standard-deviation range for YBTC extends from approximately $13.05 on the downside to $19.95 on the upside. A YBTC collar hedges an existing long YBTC 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 YBTC IV rank near 14.61% 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 YBTC at 73.00%. As a Financial Services name, YBTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YBTC-specific events.
YBTC 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. YBTC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move YBTC alongside the broader basket even when YBTC-specific fundamentals are unchanged. Always rebuild the position from current YBTC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on YBTC?
- A collar on YBTC is the collar strategy applied to YBTC (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 YBTC etf trading near $16.50, the strikes shown on this page are snapped to the nearest listed YBTC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are YBTC 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 YBTC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 73.00%), the computed maximum profit is $64.00 per contract and the computed maximum loss is -$36.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a YBTC collar?
- The breakeven for the YBTC collar priced on this page is roughly $16.36 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 YBTC market-implied 1-standard-deviation expected move is approximately 20.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on YBTC?
- Collars on YBTC hedge an existing long YBTC 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 YBTC implied volatility affect this collar?
- YBTC ATM IV is at 73.00% with IV rank near 14.61%, 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.