How are AMZD 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 AMZD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 353.30%), the computed maximum profit is $57.00 per contract and the computed maximum loss is -$43.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AMZD collar?

The breakeven for the AMZD collar priced on this page is roughly $9.43 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 AMZD market-implied 1-standard-deviation expected move is approximately 101.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AMZD implied volatility affect this collar?

AMZD ATM IV is at 353.30% with IV rank near 70.79%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

AMZD Collar Strategy

AMZD (Direxion Daily AMZN Bear 1X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

The Direxion Daily AMZN Bear 1X ETF, along with its counterpart, the Direxion Daily AMZN Bull 2X ETF, are constructed to deliver specific daily investment outcomes tied to the common shares of Amazon.com, Inc. (NASDAQ: AMZN). Before the deduction of any fees or expenses, the Bear 1X ETF (AMZD) aims to produce daily returns that precisely match 100% of the inverse (or opposite) performance of Amazon's stock. Conversely, the Bull 2X ETF endeavors to achieve daily returns equivalent to 200% of Amazon's daily performance.

AMZD (Direxion Daily AMZN Bear 1X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $4.2M, a beta of -1.31 versus the broader market, a 52-week range of 8.195-11.77, average daily share volume of 13.2M, a public-listing history dating back to 2022. These structural characteristics shape how AMZD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -1.31 indicates AMZD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AMZD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on AMZD?

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 AMZD snapshot

As of June 29, 2026, spot at $9.39, ATM IV 353.30%, IV rank 70.79%, expected move 101.29%. The collar on AMZD 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 AMZD specifically: IV regime affects collar pricing on both sides; elevated AMZD IV at 353.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 101.29% (roughly $9.51 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 AMZD expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMZD should anchor to the underlying notional of $9.39 per share and to the trader's directional view on AMZD etf.

AMZD collar setup

The AMZD 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 AMZD near $9.39, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMZD 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 AMZD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$9.39	long
Sell 1	Call	$10.00	$0.15
Buy 1	Put	$9.00	$0.19

AMZD collar risk and reward

Net Premium / Debit: -$943.00
Max Profit (per contract): $57.00
Max Loss (per contract): -$43.00
Breakeven(s): $9.43
Risk / Reward Ratio: 1.326

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.

AMZD collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AMZD. 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	-99.9%	-$43.00
$2.09	-77.8%	-$43.00
$4.16	-55.7%	-$43.00
$6.24	-33.6%	-$43.00
$8.31	-11.5%	-$43.00
$10.39	+10.6%	+$57.00
$12.46	+32.7%	+$57.00
$14.54	+54.8%	+$57.00
$16.61	+76.9%	+$57.00
$18.69	+99.0%	+$57.00

When traders use collar on AMZD

Collars on AMZD hedge an existing long AMZD 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.

AMZD thesis for this collar

The market-implied 1-standard-deviation range for AMZD extends from approximately $-0.12 on the downside to $18.90 on the upside. A AMZD collar hedges an existing long AMZD 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 AMZD IV rank near 70.79% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on AMZD at 353.30%. As a Financial Services name, AMZD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMZD-specific events.

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

Frequently asked questions

What is a collar on AMZD?: A collar on AMZD is the collar strategy applied to AMZD (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 AMZD etf trading near $9.39, the strikes shown on this page are snapped to the nearest listed AMZD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AMZD 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 AMZD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 353.30%), the computed maximum profit is $57.00 per contract and the computed maximum loss is -$43.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AMZD collar?: The breakeven for the AMZD collar priced on this page is roughly $9.43 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 AMZD market-implied 1-standard-deviation expected move is approximately 101.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AMZD?: Collars on AMZD hedge an existing long AMZD 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 AMZD implied volatility affect this collar?: AMZD ATM IV is at 353.30% with IV rank near 70.79%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.