AMZU Collar Strategy
AMZU (Direxion Daily AMZN Bull 2X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
The Direxion Daily AMZN Bull 2X ETF and the Direxion Daily AMZN Bear 1X ETF are designed to achieve distinct daily investment returns, calculated before any fees or operating expenses. The Bull 2X ETF aims to deliver daily results equivalent to two times (200%) the performance of Amazon.com, Inc. (NASDAQ: AMZN) common stock. Conversely, the Bear 1X ETF seeks to generate daily returns that mirror the inverse (or opposite) performance of AMZN's shares.
AMZU (Direxion Daily AMZN Bull 2X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $299.3M, a beta of 2.84 versus the broader market, a 52-week range of 24.54-47.14, average daily share volume of 3.1M, a public-listing history dating back to 2022. These structural characteristics shape how AMZU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.84 indicates AMZU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AMZU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AMZU?
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 AMZU snapshot
As of June 30, 2026, spot at $33.16, ATM IV 69.50%, IV rank 29.62%, expected move 19.93%. The collar on AMZU 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 17-day expiry.
Why this collar structure on AMZU specifically: IV regime affects collar pricing on both sides; compressed AMZU IV at 69.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.93% (roughly $6.61 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AMZU expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMZU should anchor to the underlying notional of $33.16 per share and to the trader's directional view on AMZU etf.
AMZU collar setup
The AMZU 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 AMZU near $33.16, the first option leg uses a $34.80 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMZU chain at a 17-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 AMZU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $33.16 | long |
| Sell 1 | Call | $34.80 | $1.30 |
| Buy 1 | Put | $31.80 | $1.20 |
AMZU collar risk and reward
- Net Premium / Debit
- -$3,306.00
- Max Profit (per contract)
- $174.00
- Max Loss (per contract)
- -$126.00
- Breakeven(s)
- $33.06
- Risk / Reward Ratio
- 1.381
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.
AMZU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AMZU. 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% | -$126.00 |
| $7.34 | -77.9% | -$126.00 |
| $14.67 | -55.8% | -$126.00 |
| $22.00 | -33.6% | -$126.00 |
| $29.33 | -11.5% | -$126.00 |
| $36.66 | +10.6% | +$174.00 |
| $43.99 | +32.7% | +$174.00 |
| $51.33 | +54.8% | +$174.00 |
| $58.66 | +76.9% | +$174.00 |
| $65.99 | +99.0% | +$174.00 |
When traders use collar on AMZU
Collars on AMZU hedge an existing long AMZU 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.
AMZU thesis for this collar
The market-implied 1-standard-deviation range for AMZU extends from approximately $26.55 on the downside to $39.77 on the upside. A AMZU collar hedges an existing long AMZU 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 AMZU IV rank near 29.62% 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 AMZU at 69.50%. As a Financial Services name, AMZU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMZU-specific events.
AMZU 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. AMZU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMZU alongside the broader basket even when AMZU-specific fundamentals are unchanged. Always rebuild the position from current AMZU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AMZU?
- A collar on AMZU is the collar strategy applied to AMZU (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 AMZU etf trading near $33.16, the strikes shown on this page are snapped to the nearest listed AMZU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMZU 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 AMZU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 69.50%), the computed maximum profit is $174.00 per contract and the computed maximum loss is -$126.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMZU collar?
- The breakeven for the AMZU collar priced on this page is roughly $33.06 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 AMZU market-implied 1-standard-deviation expected move is approximately 19.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AMZU?
- Collars on AMZU hedge an existing long AMZU 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 AMZU implied volatility affect this collar?
- AMZU ATM IV is at 69.50% with IV rank near 29.62%, 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.