How are BEDZ 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 BEDZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $192.00 per contract and the computed maximum loss is -$208.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BEDZ collar?

The breakeven for the BEDZ collar priced on this page is roughly $37.08 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 BEDZ market-implied 1-standard-deviation expected move is approximately 10.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BEDZ implied volatility affect this collar?

BEDZ ATM IV is at 36.80% with IV rank near 20.88%, 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.

BEDZ Collar Strategy

BEDZ (AdvisorShares Hotel ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

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BEDZ (AdvisorShares Hotel ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.1M, a beta of 1.16 versus the broader market, a 52-week range of 30.453-37.78, average daily share volume of 2K, a public-listing history dating back to 2021. These structural characteristics shape how BEDZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.16 places BEDZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BEDZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BEDZ?

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 BEDZ snapshot

As of June 30, 2026, spot at $37.34, ATM IV 36.80%, IV rank 20.88%, expected move 10.55%. The collar on BEDZ 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 BEDZ specifically: IV regime affects collar pricing on both sides; compressed BEDZ IV at 36.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.55% (roughly $3.94 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 BEDZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on BEDZ should anchor to the underlying notional of $37.34 per share and to the trader's directional view on BEDZ etf.

BEDZ collar setup

The BEDZ 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 BEDZ near $37.34, the first option leg uses a $39.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BEDZ 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 BEDZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$37.34	long
Sell 1	Call	$39.00	$0.58
Buy 1	Put	$35.00	$0.32

BEDZ collar risk and reward

Net Premium / Debit: -$3,708.00
Max Profit (per contract): $192.00
Max Loss (per contract): -$208.00
Breakeven(s): $37.08
Risk / Reward Ratio: 0.923

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.

BEDZ collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BEDZ. 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%	-$208.00
$8.26	-77.9%	-$208.00
$16.52	-55.8%	-$208.00
$24.77	-33.7%	-$208.00
$33.03	-11.5%	-$208.00
$41.28	+10.6%	+$192.00
$49.54	+32.7%	+$192.00
$57.79	+54.8%	+$192.00
$66.05	+76.9%	+$192.00
$74.30	+99.0%	+$192.00

When traders use collar on BEDZ

Collars on BEDZ hedge an existing long BEDZ 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.

BEDZ thesis for this collar

The market-implied 1-standard-deviation range for BEDZ extends from approximately $33.40 on the downside to $41.28 on the upside. A BEDZ collar hedges an existing long BEDZ 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 BEDZ IV rank near 20.88% 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 BEDZ at 36.80%. As a Financial Services name, BEDZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BEDZ-specific events.

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

Frequently asked questions

What is a collar on BEDZ?: A collar on BEDZ is the collar strategy applied to BEDZ (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 BEDZ etf trading near $37.34, the strikes shown on this page are snapped to the nearest listed BEDZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BEDZ 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 BEDZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $192.00 per contract and the computed maximum loss is -$208.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BEDZ collar?: The breakeven for the BEDZ collar priced on this page is roughly $37.08 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 BEDZ market-implied 1-standard-deviation expected move is approximately 10.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BEDZ?: Collars on BEDZ hedge an existing long BEDZ 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 BEDZ implied volatility affect this collar?: BEDZ ATM IV is at 36.80% with IV rank near 20.88%, 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.