WDCX Collar Strategy
WDCX (Tradr 2X Long WDC Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The Fund seeks daily investment results, before fees and expenses, that correspond to two times (200%) the daily performance of the common shares of Nasdaq: WDC. The Fund will maintain at least 80% exposure to financial instruments that provide two times leveraged exposure to the daily performance of WDC.
WDCX (Tradr 2X Long WDC Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $52.2M, a beta of 9.60 versus the broader market, a 52-week range of 7.46-69, average daily share volume of 1.7M, a public-listing history dating back to 2026. These structural characteristics shape how WDCX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 9.60 indicates WDCX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on WDCX?
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.
WDCX snapshot
As of August 14, 2026, spot at $22.18, ATM IV 142.50%, expected move 40.85%. The collar on WDCX below is built from the August 14, 2026 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 WDCX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for WDCX is inferred from ATM IV at 142.50% alone, with a market-implied 1-standard-deviation move of approximately 40.85% (roughly $9.06 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 WDCX expiries trade a higher absolute premium for lower per-day decay. Position sizing on WDCX should anchor to the underlying notional of $22.18 per share and to the trader's directional view on WDCX stock.
WDCX collar setup
The WDCX collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WDCX at $22.18 on that close, the first option leg uses a $23.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WDCX 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 WDCX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $22.18 | long |
| Sell 1 | Call | $23.33 | $3.25 |
| Buy 1 | Put | $21.67 | $3.75 |
WDCX collar risk and reward
- Net Premium / Debit
- -$2,268.00
- Max Profit (per contract)
- $65.00
- Max Loss (per contract)
- -$101.00
- Breakeven(s)
- $22.68
- Risk / Reward Ratio
- 0.644
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.
WDCX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WDCX. 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 | -100.0% | -$101.00 |
| $4.91 | -77.8% | -$101.00 |
| $9.82 | -55.7% | -$101.00 |
| $14.72 | -33.6% | -$101.00 |
| $19.62 | -11.5% | -$101.00 |
| $24.53 | +10.6% | +$65.00 |
| $29.43 | +32.7% | +$65.00 |
| $34.33 | +54.8% | +$65.00 |
| $39.23 | +76.9% | +$65.00 |
| $44.14 | +99.0% | +$65.00 |
When traders use collar on WDCX
Collars on WDCX hedge an existing long WDCX stock 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.
WDCX thesis for this collar
The market-implied 1-standard-deviation range for WDCX extends from approximately $13.12 on the downside to $31.24 on the upside. A WDCX collar hedges an existing long WDCX 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. As a Financial Services name, WDCX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WDCX-specific events.
WDCX 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. WDCX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WDCX alongside the broader basket even when WDCX-specific fundamentals are unchanged. Always rebuild the position from current WDCX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WDCX?
- A collar on WDCX is the collar strategy applied to WDCX (stock). 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 WDCX stock at $22.18 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WDCX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WDCX 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 WDCX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 142.50%), the computed maximum profit is $65.00 per contract and the computed maximum loss is -$101.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WDCX collar?
- The breakeven for the WDCX collar priced on this page is roughly $22.68 at expiration, derived from the August 14, 2026 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 WDCX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 40.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WDCX?
- Collars on WDCX hedge an existing long WDCX stock 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 WDCX implied volatility affect this collar?
- Current WDCX ATM IV is 142.50%; IV rank context is unavailable in the current snapshot.