AXTU Collar Strategy
AXTU (ETF Opportunities Trust - T-REX 2X Long AXTI Daily Target ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
AXTU is designed for making bullish bets on the stock price of AXT, Inc. (NASDAQ: AXTI) through swap agreements. The objective is to obtain daily leveraged exposure equivalent to 200% of the fund's net assets. To maintain this exposure, daily rebalancing is performed to make adjustments in response to AXTIs daily price movements. As a geared product, the fund is intended as a short-term tactical tool, rather than as a long-term investment vehicle. As a result, returns may deviate from the expected 2x if held for longer than a single day due to compounding. This strategy is high-risk and does not include a defensive position as part of its overall process.
AXTU (ETF Opportunities Trust - T-REX 2X Long AXTI Daily Target ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $2.8M, a beta of 2.87 versus the broader market, a 52-week range of 7.92-403.7, average daily share volume of 103K, a public-listing history dating back to 2026. These structural characteristics shape how AXTU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.87 indicates AXTU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on AXTU?
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.
AXTU snapshot
As of November 13, 2026, spot at $9.46, ATM IV 218.00%, expected move 62.50%. The collar on AXTU 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 AXTU specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AXTU is inferred from ATM IV at 218.00% alone, with a market-implied 1-standard-deviation move of approximately 62.50% (roughly $5.91 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 AXTU expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXTU should anchor to the underlying notional of $9.46 per share and to the trader's directional view on AXTU etf.
AXTU collar setup
The AXTU 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 AXTU at $9.46 on that close, 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 AXTU 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 AXTU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.46 | long |
| Sell 1 | Call | $10.00 | $2.20 |
| Buy 1 | Put | $9.00 | $2.25 |
AXTU collar risk and reward
- Net Premium / Debit
- -$951.00
- Max Profit (per contract)
- $49.00
- Max Loss (per contract)
- -$51.00
- Breakeven(s)
- $9.51
- Risk / Reward Ratio
- 0.961
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.
AXTU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AXTU. 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 | -99.9% | -$51.00 |
| $2.10 | -77.8% | -$51.00 |
| $4.19 | -55.7% | -$51.00 |
| $6.28 | -33.6% | -$51.00 |
| $8.37 | -11.5% | -$51.00 |
| $10.46 | +10.6% | +$49.00 |
| $12.55 | +32.7% | +$49.00 |
| $14.64 | +54.8% | +$49.00 |
| $16.73 | +76.9% | +$49.00 |
| $18.82 | +99.0% | +$49.00 |
When traders use collar on AXTU
Collars on AXTU hedge an existing long AXTU 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.
AXTU thesis for this collar
The market-implied 1-standard-deviation range for AXTU extends from approximately $3.55 on the downside to $15.37 on the upside. A AXTU collar hedges an existing long AXTU 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, AXTU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXTU-specific events.
AXTU 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. AXTU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AXTU alongside the broader basket even when AXTU-specific fundamentals are unchanged. Always rebuild the position from current AXTU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AXTU?
- A collar on AXTU is the collar strategy applied to AXTU (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 AXTU etf at $9.46 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed AXTU chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AXTU 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 AXTU collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 218.00%), the computed maximum profit is $49.00 per contract and the computed maximum loss is -$51.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AXTU collar?
- The breakeven for the AXTU collar priced on this page is roughly $9.51 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 AXTU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 62.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AXTU?
- Collars on AXTU hedge an existing long AXTU 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 AXTU implied volatility affect this collar?
- Current AXTU ATM IV is 218.00%; IV rank context is unavailable in the current snapshot.