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 (BDRY) is an exchange-traded fund (ETF) designed to reflect the daily price movements of the near-dated dry bulk freight futures. BDRY offers investors unlevered exposure to dry bulk freight without the need for a futures account.
BDRY (Breakwave Dry Bulk Shipping ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $48.9M, a beta of 2.61 versus the broader market, a 52-week range of 5.03-13.34, average daily share volume of 172K, 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 2.61 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.
Current BDRY snapshot
As of May 15, 2026, spot at $13.13, ATM IV 60.70%, IV rank 8.82%, expected move 17.40%. The collar on BDRY 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 34-day expiry.
Why this collar structure on BDRY specifically: IV regime affects collar pricing on both sides; compressed BDRY IV at 60.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.40% (roughly $2.28 on the underlying). The 34-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 $13.13 per share and to the trader's directional view on BDRY etf.
BDRY collar setup
The BDRY 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 BDRY near $13.13, the first option leg uses a $14.00 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 34-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 | $13.13 | long |
| Sell 1 | Call | $14.00 | $0.58 |
| Buy 1 | Put | $12.00 | $0.58 |
BDRY collar risk and reward
- Net Premium / Debit
- -$1,313.00
- Max Profit (per contract)
- $87.00
- Max Loss (per contract)
- -$113.00
- Breakeven(s)
- $13.13
- Risk / Reward Ratio
- 0.770
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% | -$113.00 |
| $2.91 | -77.8% | -$113.00 |
| $5.81 | -55.7% | -$113.00 |
| $8.72 | -33.6% | -$113.00 |
| $11.62 | -11.5% | -$113.00 |
| $14.52 | +10.6% | +$87.00 |
| $17.42 | +32.7% | +$87.00 |
| $20.32 | +54.8% | +$87.00 |
| $23.23 | +76.9% | +$87.00 |
| $26.13 | +99.0% | +$87.00 |
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 $10.85 on the downside to $15.41 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 8.82% 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 60.70%. 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 trading near $13.13, the strikes shown on this page are snapped to the nearest listed BDRY chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 60.70%), the computed maximum profit is $87.00 per contract and the computed maximum loss is -$113.00 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 $13.13 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 BDRY market-implied 1-standard-deviation expected move is approximately 17.40%; 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 60.70% with IV rank near 8.82%, 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.