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 $14.7M, a beta of -2.71 versus the broader market, a 52-week range of 20.82-105.8, average daily share volume of 673K, 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 -2.71 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 November 13, 2026, spot at $23.14, ATM IV 68.60%, IV rank 28.94%, expected move 19.67%. The collar on AMDD below is built from the November 13, 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 68.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.67% (roughly $4.55 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 $23.14 per share and to the trader's directional view on AMDD etf.
AMDD collar setup
The AMDD collar below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AMDD at $23.14 on that close, the first option leg uses a $24.00 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 | $23.14 | long |
| Sell 1 | Call | $24.00 | $1.63 |
| Buy 1 | Put | $22.00 | $1.35 |
AMDD collar risk and reward
- Net Premium / Debit
- -$2,286.50
- Max Profit (per contract)
- $113.50
- Max Loss (per contract)
- -$86.50
- Breakeven(s)
- $22.87
- Risk / Reward Ratio
- 1.312
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% | -$86.50 |
| $5.13 | -77.9% | -$86.50 |
| $10.24 | -55.7% | -$86.50 |
| $15.36 | -33.6% | -$86.50 |
| $20.47 | -11.5% | -$86.50 |
| $25.59 | +10.6% | +$113.50 |
| $30.70 | +32.7% | +$113.50 |
| $35.82 | +54.8% | +$113.50 |
| $40.93 | +76.9% | +$113.50 |
| $46.05 | +99.0% | +$113.50 |
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 $18.59 on the downside to $27.69 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 28.94% 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 68.60%. 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 $23.14 on the November 13, 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 November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 68.60%), the computed maximum profit is $113.50 per contract and the computed maximum loss is -$86.50 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 $22.87 at expiration, derived from the November 13, 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 19.67%; 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 68.60% with IV rank near 28.94%, 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.