How are BAGY 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 BAGY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 19.80%), the computed maximum profit is $133.00 per contract and the computed maximum loss is -$167.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BAGY collar?

The breakeven for the BAGY collar priced on this page is roughly $22.67 at expiration, derived from the August 14, 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 BAGY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BAGY implied volatility affect this collar?

BAGY ATM IV is at 19.80% with IV rank near 9.59%, 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.

BAGY Collar Strategy

BAGY (Amplify Bitcoin Max Income Covered Call ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on CBOE.

The Amplify Bitcoin Max Income Covered Call ETF (BAGY) is designed to generate significant current income. It achieves this by implementing a covered call strategy, which is directly linked to the price performance of Bitcoin. The fund targets an annualized option premium return of 30-60%, while also offering some potential for capital appreciation. BAGY accomplishes this by regularly writing weekly options, transforming the inherent volatility of Bitcoin's price into profitable income opportunities.

BAGY (Amplify Bitcoin Max Income Covered Call ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $10.8M, a beta of 1.37 versus the broader market, a 52-week range of 21.295-60.305, average daily share volume of 6K, a public-listing history dating back to 2025. These structural characteristics shape how BAGY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.37 indicates BAGY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BAGY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BAGY?

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.

BAGY snapshot

As of August 14, 2026, spot at $22.45, ATM IV 19.80%, IV rank 9.59%, expected move 5.68%. The collar on BAGY below is built from the August 14, 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 BAGY specifically: IV regime affects collar pricing on both sides; compressed BAGY IV at 19.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.68% (roughly $1.27 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 BAGY expiries trade a higher absolute premium for lower per-day decay. Position sizing on BAGY should anchor to the underlying notional of $22.45 per share and to the trader's directional view on BAGY etf.

BAGY collar setup

The BAGY collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BAGY at $22.45 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 BAGY 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 BAGY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$22.45	long
Sell 1	Call	$24.00	$0.30
Buy 1	Put	$21.00	$0.52

BAGY collar risk and reward

Net Premium / Debit: -$2,267.00
Max Profit (per contract): $133.00
Max Loss (per contract): -$167.00
Breakeven(s): $22.67
Risk / Reward Ratio: 0.796

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.

BAGY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BAGY. 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	-100.0%	-$167.00
$4.97	-77.8%	-$167.00
$9.94	-55.7%	-$167.00
$14.90	-33.6%	-$167.00
$19.86	-11.5%	-$167.00
$24.82	+10.6%	+$133.00
$29.79	+32.7%	+$133.00
$34.75	+54.8%	+$133.00
$39.71	+76.9%	+$133.00
$44.67	+99.0%	+$133.00

When traders use collar on BAGY

Collars on BAGY hedge an existing long BAGY 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.

BAGY thesis for this collar

The market-implied 1-standard-deviation range for BAGY extends from approximately $21.18 on the downside to $23.72 on the upside. A BAGY collar hedges an existing long BAGY 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 BAGY IV rank near 9.59% 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 BAGY at 19.80%. As a Financial Services name, BAGY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BAGY-specific events.

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

Frequently asked questions

What is a collar on BAGY?: A collar on BAGY is the collar strategy applied to BAGY (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 BAGY etf at $22.45 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BAGY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BAGY 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 BAGY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 19.80%), the computed maximum profit is $133.00 per contract and the computed maximum loss is -$167.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BAGY collar?: The breakeven for the BAGY collar priced on this page is roughly $22.67 at expiration, derived from the August 14, 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 BAGY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BAGY?: Collars on BAGY hedge an existing long BAGY 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 BAGY implied volatility affect this collar?: BAGY ATM IV is at 19.80% with IV rank near 9.59%, 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.