AMDD Collar Strategy
AMDD (Direxion Daily AMD Bear 1X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
These Direxion ETFs, the Daily AMD Bull 2X and Daily AMD Bear 1X, aim for specific daily investment results, prior to fees and expenses: the Bull fund targets twice (200%) the performance of Advanced Micro Devices, Inc. (NASDAQ: AMD) common shares, while the Bear fund endeavors to achieve 100% of the inverse (opposite) performance of the same shares.
AMDD (Direxion Daily AMD Bear 1X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $16.8M, a beta of -2.73 versus the broader market, a 52-week range of 26.1-157.3, average daily share volume of 1.8M, a public-listing history dating back to 2025. These structural characteristics shape how AMDD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.73 indicates AMDD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AMDD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AMDD?
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.
AMDD snapshot
As of August 14, 2026, spot at $28.16, ATM IV 56.10%, IV rank 14.08%, expected move 16.08%. The collar on AMDD 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 AMDD specifically: IV regime affects collar pricing on both sides; compressed AMDD IV at 56.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.08% (roughly $4.53 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 AMDD expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMDD should anchor to the underlying notional of $28.16 per share and to the trader's directional view on AMDD etf.
AMDD collar setup
The AMDD 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 AMDD at $28.16 on that close, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMDD 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 AMDD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.16 | long |
| Sell 1 | Call | $30.00 | $1.38 |
| Buy 1 | Put | $27.00 | $1.28 |
AMDD collar risk and reward
- Net Premium / Debit
- -$2,806.00
- Max Profit (per contract)
- $194.00
- Max Loss (per contract)
- -$106.00
- Breakeven(s)
- $28.06
- Risk / Reward Ratio
- 1.830
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.
AMDD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AMDD. 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% | -$106.00 |
| $6.24 | -77.9% | -$106.00 |
| $12.46 | -55.8% | -$106.00 |
| $18.69 | -33.6% | -$106.00 |
| $24.91 | -11.5% | -$106.00 |
| $31.14 | +10.6% | +$194.00 |
| $37.36 | +32.7% | +$194.00 |
| $43.59 | +54.8% | +$194.00 |
| $49.81 | +76.9% | +$194.00 |
| $56.04 | +99.0% | +$194.00 |
When traders use collar on AMDD
Collars on AMDD hedge an existing long AMDD 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.
AMDD thesis for this collar
The market-implied 1-standard-deviation range for AMDD extends from approximately $23.63 on the downside to $32.69 on the upside. A AMDD collar hedges an existing long AMDD 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 AMDD IV rank near 14.08% 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 AMDD at 56.10%. As a Financial Services name, AMDD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMDD-specific events.
AMDD 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. AMDD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMDD alongside the broader basket even when AMDD-specific fundamentals are unchanged. Always rebuild the position from current AMDD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AMDD?
- A collar on AMDD is the collar strategy applied to AMDD (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 AMDD etf at $28.16 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AMDD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AMDD 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 AMDD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 56.10%), the computed maximum profit is $194.00 per contract and the computed maximum loss is -$106.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMDD collar?
- The breakeven for the AMDD collar priced on this page is roughly $28.06 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 AMDD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AMDD?
- Collars on AMDD hedge an existing long AMDD 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 AMDD implied volatility affect this collar?
- AMDD ATM IV is at 56.10% with IV rank near 14.08%, 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.