BDRY Collar Strategy
BDRY (Breakwave Dry Bulk Shipping ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Breakwave Dry Bulk Shipping ETF, or BDRY, is an investment vehicle engineered to track the daily price changes of short-term dry bulk freight futures. It offers investors direct, unleveraged access to the dry bulk shipping market without requiring the establishment of a futures trading account.
BDRY (Breakwave Dry Bulk Shipping ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $44.5M, a beta of 2.59 versus the broader market, a 52-week range of 7.41-14.16, average daily share volume of 71K, a public-listing history dating back to 2018. These structural characteristics shape how BDRY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.59 indicates BDRY 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 BDRY?
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.
BDRY snapshot
As of August 14, 2026, spot at $14.20, ATM IV 45.80%, IV rank 6.14%, expected move 13.13%. The collar on BDRY 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 BDRY specifically: IV regime affects collar pricing on both sides; compressed BDRY IV at 45.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.13% (roughly $1.86 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 BDRY expiries trade a higher absolute premium for lower per-day decay. Position sizing on BDRY should anchor to the underlying notional of $14.20 per share and to the trader's directional view on BDRY etf.
BDRY collar setup
The BDRY 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 BDRY at $14.20 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BDRY 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 BDRY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $14.20 | long |
| Sell 1 | Call | $15.00 | $0.46 |
| Buy 1 | Put | $13.00 | $0.34 |
BDRY collar risk and reward
- Net Premium / Debit
- -$1,408.00
- Max Profit (per contract)
- $92.00
- Max Loss (per contract)
- -$108.00
- Breakeven(s)
- $14.08
- Risk / Reward Ratio
- 0.852
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.
BDRY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BDRY. 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% | -$108.00 |
| $3.15 | -77.8% | -$108.00 |
| $6.29 | -55.7% | -$108.00 |
| $9.43 | -33.6% | -$108.00 |
| $12.56 | -11.5% | -$108.00 |
| $15.70 | +10.6% | +$92.00 |
| $18.84 | +32.7% | +$92.00 |
| $21.98 | +54.8% | +$92.00 |
| $25.12 | +76.9% | +$92.00 |
| $28.26 | +99.0% | +$92.00 |
When traders use collar on BDRY
Collars on BDRY hedge an existing long BDRY 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.
BDRY thesis for this collar
The market-implied 1-standard-deviation range for BDRY extends from approximately $12.34 on the downside to $16.06 on the upside. A BDRY collar hedges an existing long BDRY 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 BDRY IV rank near 6.14% 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 BDRY at 45.80%. As a Financial Services name, BDRY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BDRY-specific events.
BDRY 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. BDRY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BDRY alongside the broader basket even when BDRY-specific fundamentals are unchanged. Always rebuild the position from current BDRY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BDRY?
- A collar on BDRY is the collar strategy applied to BDRY (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 BDRY etf at $14.20 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BDRY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BDRY 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 BDRY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 45.80%), the computed maximum profit is $92.00 per contract and the computed maximum loss is -$108.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BDRY collar?
- The breakeven for the BDRY collar priced on this page is roughly $14.08 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 BDRY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BDRY?
- Collars on BDRY hedge an existing long BDRY 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 BDRY implied volatility affect this collar?
- BDRY ATM IV is at 45.80% with IV rank near 6.14%, 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.