AMDD Collar Strategy
AMDD (Direxion Daily AMD Bear 1X ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Direxion Daily AMD Bull 2X ETF and Direxion Daily AMD Bear 1X ETF seek daily investment results, before fees and expenses, of 200% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Advanced Micro Devices, Inc. (NASDAQ: AMD).
AMDD (Direxion Daily AMD Bear 1X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.8M, a beta of -2.47 versus the broader market, a 52-week range of 3.53-22.81, average daily share volume of 20.3M, 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 -2.47 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.
Current AMDD snapshot
As of May 15, 2026, spot at $3.87, ATM IV 72.90%, expected move 20.90%. The collar on AMDD 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 98-day expiry.
Why this collar structure on AMDD specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AMDD is inferred from ATM IV at 72.90% alone, with a market-implied 1-standard-deviation move of approximately 20.90% (roughly $0.81 on the underlying). The 98-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 $3.87 per share and to the trader's directional view on AMDD etf.
AMDD collar setup
The AMDD 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 AMDD near $3.87, the first option leg uses a $4.06 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 98-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 | $3.87 | long |
| Sell 1 | Call | $4.06 | N/A |
| Buy 1 | Put | $3.68 | N/A |
AMDD collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
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 $3.06 on the downside to $4.68 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. 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 trading near $3.87, the strikes shown on this page are snapped to the nearest listed AMDD chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 72.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded 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 no defined breakeven on the modeled curve 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 AMDD market-implied 1-standard-deviation expected move is approximately 20.90%; 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?
- Current AMDD ATM IV is 72.90%; IV rank context is unavailable in the current snapshot.