How are AIPI 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 AIPI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.90%), the computed maximum profit is $112.50 per contract and the computed maximum loss is -$187.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIPI collar?

The breakeven for the AIPI collar priced on this page is roughly $36.88 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 AIPI market-implied 1-standard-deviation expected move is approximately 7.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIPI implied volatility affect this collar?

AIPI ATM IV is at 25.90% with IV rank near 5.13%, 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.

AIPI Collar Strategy

AIPI (REX AI Equity Premium Income ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

AIPI targets companies at the forefront of Artificial Intelligence (AI) technologies in sectors such as AI hardware, software, enabling infrastructure, and services. Companies are classified into Purity Leaders and Key Enablers in the AI space, with a 40% and 60% allocation respectively. The fund primarily invests in US-based AI technology companies, holding 25 stock positions for potential NAV growth while capping gains. It employs a covered call strategy, writing slightly out-of-the-money options on individual securities to boost income from higher premiums, partially offsetting price declines and limiting upside potential. Specifically, it sells standardized exchange-traded and FLEX call option contracts linked to underlying security returns. Managed actively, AIPI focuses on stock selection and option writing tailored to prevailing market conditions.

AIPI (REX AI Equity Premium Income ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $403.4M, a beta of 1.07 versus the broader market, a 52-week range of 32.21-45.08, average daily share volume of 172K, a public-listing history dating back to 2024. These structural characteristics shape how AIPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.07 places AIPI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on AIPI?

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 AIPI snapshot

As of June 29, 2026, spot at $36.63, ATM IV 25.90%, IV rank 5.13%, expected move 7.43%. The collar on AIPI 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 18-day expiry.

Why this collar structure on AIPI specifically: IV regime affects collar pricing on both sides; compressed AIPI IV at 25.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.43% (roughly $2.72 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIPI should anchor to the underlying notional of $36.63 per share and to the trader's directional view on AIPI etf.

AIPI collar setup

The AIPI 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 AIPI near $36.63, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIPI chain at a 18-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 AIPI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$36.63	long
Sell 1	Call	$38.00	$0.23
Buy 1	Put	$35.00	$0.47

AIPI collar risk and reward

Net Premium / Debit: -$3,687.50
Max Profit (per contract): $112.50
Max Loss (per contract): -$187.50
Breakeven(s): $36.88
Risk / Reward Ratio: 0.600

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.

AIPI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AIPI. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$187.50
$8.11	-77.9%	-$187.50
$16.21	-55.8%	-$187.50
$24.30	-33.7%	-$187.50
$32.40	-11.5%	-$187.50
$40.50	+10.6%	+$112.50
$48.60	+32.7%	+$112.50
$56.70	+54.8%	+$112.50
$64.79	+76.9%	+$112.50
$72.89	+99.0%	+$112.50

When traders use collar on AIPI

Collars on AIPI hedge an existing long AIPI 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.

AIPI thesis for this collar

The market-implied 1-standard-deviation range for AIPI extends from approximately $33.91 on the downside to $39.35 on the upside. A AIPI collar hedges an existing long AIPI 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 AIPI IV rank near 5.13% 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 AIPI at 25.90%. As a Financial Services name, AIPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIPI-specific events.

AIPI 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. AIPI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIPI alongside the broader basket even when AIPI-specific fundamentals are unchanged. Always rebuild the position from current AIPI chain quotes before placing a trade.

Frequently asked questions

What is a collar on AIPI?: A collar on AIPI is the collar strategy applied to AIPI (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 AIPI etf trading near $36.63, the strikes shown on this page are snapped to the nearest listed AIPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AIPI 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 AIPI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.90%), the computed maximum profit is $112.50 per contract and the computed maximum loss is -$187.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIPI collar?: The breakeven for the AIPI collar priced on this page is roughly $36.88 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 AIPI market-implied 1-standard-deviation expected move is approximately 7.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AIPI?: Collars on AIPI hedge an existing long AIPI 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 AIPI implied volatility affect this collar?: AIPI ATM IV is at 25.90% with IV rank near 5.13%, 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.