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 35.90%), the computed maximum profit is $132.00 per contract and the computed maximum loss is -$268.00 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 $33.68 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 10.29%; 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 35.90% with IV rank near 18.05%, 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.

Long-Term Secular Trend – Since the advent of modern tourism in the 1950’s, international travel has grown 57-fold, as measured by international arrivals data. Global Opportunity – Many of the largest U.S.-based hotel chains and lodging choices have an overseas presence to capture potential new revenue streams. Also, global travel and tourism has contributed over 9.1% to global GDP.1 Benefit of ETF Structure – ETFs offer benefits including tax efficiency, transparency, intraday liquidity, risk management and the ability to use limit orders. Pent-Up Demand – As we move past COVID, 88% of U.S. consumers are ready to return to travel, both for business and leisure.2

BEDZ (AdvisorShares Hotel ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.8M, a beta of 1.19 versus the broader market, a 52-week range of 29.29-35.45, average daily share volume of 1K, 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 1.19 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 May 15, 2026, spot at $33.08, ATM IV 35.90%, IV rank 18.05%, expected move 10.29%. 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 34-day expiry.

Why this collar structure on BEDZ specifically: IV regime affects collar pricing on both sides; compressed BEDZ IV at 35.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.29% (roughly $3.40 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 BEDZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on BEDZ should anchor to the underlying notional of $33.08 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 $33.08, the first option leg uses a $35.00 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 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 BEDZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$33.08	long
Sell 1	Call	$35.00	$0.43
Buy 1	Put	$31.00	$1.03

BEDZ collar risk and reward

Net Premium / Debit: -$3,368.00
Max Profit (per contract): $132.00
Max Loss (per contract): -$268.00
Breakeven(s): $33.68
Risk / Reward Ratio: 0.493

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$268.00
$7.32	-77.9%	-$268.00
$14.64	-55.8%	-$268.00
$21.95	-33.6%	-$268.00
$29.26	-11.5%	-$268.00
$36.58	+10.6%	+$132.00
$43.89	+32.7%	+$132.00
$51.20	+54.8%	+$132.00
$58.51	+76.9%	+$132.00
$65.83	+99.0%	+$132.00

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 $29.68 on the downside to $36.48 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 18.05% 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 35.90%. 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 $33.08, 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 35.90%), the computed maximum profit is $132.00 per contract and the computed maximum loss is -$268.00 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 $33.68 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 10.29%; 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 35.90% with IV rank near 18.05%, 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.