How are AIRR 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 AIRR collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $528.00 per contract and the computed maximum loss is -$772.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIRR collar?

The breakeven for the AIRR collar priced on this page is roughly $125.72 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 AIRR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIRR implied volatility affect this collar?

AIRR ATM IV is at 24.70% with IV rank near 2.69%, 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.

AIRR Collar Strategy

AIRR (First Trust RBA American Industrial RenaissanceTM ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

AIRR is passively managed to select large- and midcap US companies from the Russel 2500 with the following industries: Commercial Services & Supplies, Construction & Engineering, Electrical Equipment, Machinery, and Banks. Firms must also have a positive 12-months forward earnings consensus estimate to be considered in the index. AIRR excludes community banks outside traditional mid-western manufacturing hubs, like Pennsylvania, Wisconsin, Michigan, Ohio, Illinois, Indiana and Iowa. Firms with non-US sales of more than 25% are also excluded. The index is weighted using proprietary portfolio optimization method and ensures that Banks will have a 10% sector cap and issuers will not exceed a 4% weight. The Index is reconstituted and rebalanced quarterly.

AIRR (First Trust RBA American Industrial RenaissanceTM ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $10.73B, a beta of 1.28 versus the broader market, a 52-week range of 87.67-135.05, average daily share volume of 726K, a public-listing history dating back to 2014, approximately 107 full-time employees. These structural characteristics shape how AIRR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places AIRR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIRR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on AIRR?

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.

AIRR snapshot

As of August 14, 2026, spot at $124.47, ATM IV 24.70%, IV rank 2.69%, expected move 7.08%. The collar on AIRR 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 AIRR specifically: IV regime affects collar pricing on both sides; compressed AIRR IV at 24.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $8.81 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 AIRR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIRR should anchor to the underlying notional of $124.47 per share and to the trader's directional view on AIRR etf.

AIRR collar setup

The AIRR 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 AIRR at $124.47 on that close, the first option leg uses a $131.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIRR 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 AIRR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$124.47	long
Sell 1	Call	$131.00	$1.15
Buy 1	Put	$118.00	$2.40

AIRR collar risk and reward

Net Premium / Debit: -$12,572.00
Max Profit (per contract): $528.00
Max Loss (per contract): -$772.00
Breakeven(s): $125.72
Risk / Reward Ratio: 0.684

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.

AIRR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AIRR. 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%	-$772.00
$27.53	-77.9%	-$772.00
$55.05	-55.8%	-$772.00
$82.57	-33.7%	-$772.00
$110.09	-11.6%	-$772.00
$137.61	+10.6%	+$528.00
$165.13	+32.7%	+$528.00
$192.65	+54.8%	+$528.00
$220.17	+76.9%	+$528.00
$247.69	+99.0%	+$528.00

When traders use collar on AIRR

Collars on AIRR hedge an existing long AIRR 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.

AIRR thesis for this collar

The market-implied 1-standard-deviation range for AIRR extends from approximately $115.66 on the downside to $133.28 on the upside. A AIRR collar hedges an existing long AIRR 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 AIRR IV rank near 2.69% 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 AIRR at 24.70%. As a Financial Services name, AIRR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIRR-specific events.

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

Frequently asked questions

What is a collar on AIRR?: A collar on AIRR is the collar strategy applied to AIRR (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 AIRR etf at $124.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AIRR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AIRR 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 AIRR collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $528.00 per contract and the computed maximum loss is -$772.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIRR collar?: The breakeven for the AIRR collar priced on this page is roughly $125.72 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 AIRR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AIRR?: Collars on AIRR hedge an existing long AIRR 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 AIRR implied volatility affect this collar?: AIRR ATM IV is at 24.70% with IV rank near 2.69%, 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.