WIX Collar Strategy
WIX (Wix.com Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Wix.com Ltd., together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; Wix ADI that enables users to create a website for their specific needs; and Corvid by Wix to create websites and web applications. It also provides Ascend by Wix, which offers its users access to a suite of approximately 20 products or features enabling them to connect with their customers, automate their work, and grow their business; Wix Logo Maker that allows users to generate a logo using artificial intelligence; Wix Answers, a support infrastructure enabling its users to help their users across various channels; and Wix Payments, a payment platform, which helps its users receive payments from their users through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including App Market that offers its registered users the ability to install and uninstall a range of free and paid web applications; Wix Arena, an online marketplace that brings users seeking help in creating and managing a website, together with Web experts; and Wix App, a native mobile application, which enables users to manage their Websites and Wix operating systems. As of December 31, 2021, the company had approximately 222 million registered users and 6 million premium subscriptions.
WIX (Wix.com Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $3.05B, a trailing P/E of 60.02, a beta of 1.01 versus the broader market, a 52-week range of 51.6-190.93, average daily share volume of 2.7M, a public-listing history dating back to 2013, approximately 4K full-time employees. These structural characteristics shape how WIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places WIX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 60.02 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a collar on WIX?
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 WIX snapshot
As of May 15, 2026, spot at $55.05, ATM IV 70.60%, IV rank 28.79%, expected move 20.24%. The collar on WIX 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 WIX specifically: IV regime affects collar pricing on both sides; compressed WIX IV at 70.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.24% (roughly $11.14 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 WIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on WIX should anchor to the underlying notional of $55.05 per share and to the trader's directional view on WIX stock.
WIX collar setup
The WIX 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 WIX near $55.05, the first option leg uses a $57.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WIX 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 WIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $55.05 | long |
| Sell 1 | Call | $57.50 | $3.65 |
| Buy 1 | Put | $52.50 | $3.50 |
WIX collar risk and reward
- Net Premium / Debit
- -$5,490.00
- Max Profit (per contract)
- $260.00
- Max Loss (per contract)
- -$240.00
- Breakeven(s)
- $54.90
- Risk / Reward Ratio
- 1.083
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.
WIX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WIX. 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% | -$240.00 |
| $12.18 | -77.9% | -$240.00 |
| $24.35 | -55.8% | -$240.00 |
| $36.52 | -33.7% | -$240.00 |
| $48.69 | -11.5% | -$240.00 |
| $60.86 | +10.6% | +$260.00 |
| $73.03 | +32.7% | +$260.00 |
| $85.21 | +54.8% | +$260.00 |
| $97.38 | +76.9% | +$260.00 |
| $109.55 | +99.0% | +$260.00 |
When traders use collar on WIX
Collars on WIX hedge an existing long WIX 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.
WIX thesis for this collar
The market-implied 1-standard-deviation range for WIX extends from approximately $43.91 on the downside to $66.19 on the upside. A WIX collar hedges an existing long WIX 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 WIX IV rank near 28.79% 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 WIX at 70.60%. As a Technology name, WIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WIX-specific events.
WIX 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. WIX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WIX alongside the broader basket even when WIX-specific fundamentals are unchanged. Always rebuild the position from current WIX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WIX?
- A collar on WIX is the collar strategy applied to WIX (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 WIX stock trading near $55.05, the strikes shown on this page are snapped to the nearest listed WIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WIX 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 WIX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 70.60%), the computed maximum profit is $260.00 per contract and the computed maximum loss is -$240.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WIX collar?
- The breakeven for the WIX collar priced on this page is roughly $54.90 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 WIX market-implied 1-standard-deviation expected move is approximately 20.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WIX?
- Collars on WIX hedge an existing long WIX 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 WIX implied volatility affect this collar?
- WIX ATM IV is at 70.60% with IV rank near 28.79%, 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.